Ohio SB 149 was introduced on May 13, 2019 and aims to prevent employers from considering a prospective employee’s wage or salary history when making hiring decisions. If passed, the legislation would prohibit employers from refusing to interview or consider applicants based on their wage or salary history. It also prevents any attempts to request or seek information about a prospective employee’s wage or salary history from the applicant themselves or from their current or former employer. SB 149 would prevent employers from requiring an applicant’s wage or salary history be at a specified minimum or maximum. The only circumstances where an employer would be able to inquire into an applicant’s wage or salary history is if the prospective employee voluntarily disclosed their history and if the employer has made them an offer of employment with compensation.
Despite its restrictions, this bill does not prevent questions about an applicant’s salary expectations or requirements. It also does not prohibit employers from providing information about the salary or wage for the specific position the prospective employee is applying for.
Currently 18 states have similar restrictions on wage and salary history questions and Cincinnati has passed a similar local ban on salary and wage history inquiries. The bans were passed in the hopes of ending the cycle of pay discrimination, however, a recent survey of chief human resource officers and other corporate executives reveals two-thirds of them believe the ban will do little to improve the disparity.[1] Additionally, the bill would create unnecessary and potentially costly delays in the application process. By not being able to inquire about an applicant’s previous wage or salary, employers will not know if the compensation the position offers meets the needs of the applicant. While applicants can volunteer previous salaries or inquire into a position’s salary, they may be hesitant to do so early in the hiring process. As a result, any issues with the compensation of the position will not be addressed until much later in the application process.
If passed, SB 149 would create another restriction on employers during the hiring process. There have not been any committee hearings scheduled on this bill. We will provide updates on the progress of this legislation. The attorneys at FDAR work with public and private sector clients throughout Ohio to develop efficient and legally permissible hiring policies. Let us know if we can help you.
[1] https://www.shrm.org/hr-today/news/hr-magazine/0318/pages/salary-history-bans-could-reshape-pay-negotiations.aspx