The Cleveland City Council passed Ordinance No. 104-2025 on April 28, 2025, requiring employers with 15 or more employees located in the City of Cleveland to include salary ranges in all job postings. Additionally, the Ordinance prohibits employers from inquiring about a job applicant’s salary history. Employers who violate the law face civil penalties ranging from $1,000 for a first offense to $5,000 for a third violation within a five-year span. The proponents of Ordinance emphasize several key benefits: Promoting Pay Equity; Empowering Job Seekers; Attracting and Retaining Talent; Boosting Economic Growth.
Cleveland Joins
the Transparency Movement: New Ordinance Mandates Salary Ranges in Job Postings
Cleveland employers will need to rethink their hiring
strategies starting soon, thanks to the newly passed Ordinance No. 104-2025, a
landmark piece of legislation aimed at promoting pay equity and transparency in
the workplace. Approved by the Cleveland City Council on April 28, 2025, this
ordinance mandates that employers with 15 or more employees located within the
city limits must include salary ranges in all job postings. Furthermore, the
ordinance bars employers from asking job applicants about their salary history.
This move positions Cleveland as a proactive leader in
a growing national trend toward salary transparency. Advocates argue that such
measures are crucial in addressing persistent pay gaps based on gender and
race, leveling the playing field for job seekers, and fostering a fairer and
more equitable work environment.
Key Provisions of Ordinance No. 104-2025:
- Salary Range Disclosure: The cornerstone of the ordinance requires
employers with 15 or more employees in Cleveland to include the minimum
and maximum salary or hourly wage that the employer in good faith believes
it would pay for the position. This applies to all job postings, whether
online, in print, or otherwise disseminated.
- Salary History Ban: The ordinance prohibits employers from
inquiring about an applicant's salary history during the hiring process.
This includes directly asking the candidate as well as relying on
information gleaned from past employers or other sources.
- Enforcement and
Penalties: Violations of the
ordinance carry significant financial consequences. Employers found in violation
face escalating civil penalties:
- First
Offense: $1,000
- Second
Offense (within 5 years): $2,500
- Third
Offense (within 5 years): $5,000
The Rationale Behind the Ordinance:
The proponents of Ordinance No. 104-2025 emphasize
several key benefits:
- Promoting Pay Equity: By requiring salary range disclosure, the
ordinance aims to eliminate the information asymmetry that often allows
employers to perpetuate pay disparities based on gender, race, and other
protected characteristics.
- Empowering Job Seekers: Knowing the potential salary range empowers
applicants to negotiate more effectively and make informed decisions about
whether to pursue a particular role.
- Attracting and Retaining
Talent: Studies have shown
that companies embracing salary transparency are more likely to attract
and retain top talent, as it signals a commitment to fairness and open
communication.
- Boosting Economic Growth: By increasing the economic security of
Cleveland residents, the ordinance has the potential to stimulate local
economic growth and reduce income inequality.
Impact on Cleveland Employers:
The implementation of Ordinance No. 104-2025 will
require Cleveland employers to adapt their hiring practices. Key considerations
include:
- Reviewing Compensation
Structures: Employers should
conduct thorough reviews of their existing compensation structures to
ensure they are equitable and transparent.
- Developing Salary Ranges: Establishing realistic and defensible
salary ranges for each role is crucial. This requires careful
consideration of factors such as job responsibilities, experience levels,
market rates, and internal equity.
- Updating Job Postings: All job postings must be updated to include
the required salary range information.
- Training Hiring Managers: Hiring managers must be trained on the new
requirements and understand the importance of avoiding questions about
salary history.
- Legal Compliance: Businesses should consult with legal
counsel to ensure full compliance with the ordinance and avoid potential
penalties.
Looking Ahead:
Ordinance No. 104-2025 marks a significant step
forward in Cleveland's efforts to create a more equitable and transparent job
market. As the ordinance takes effect, its impact will be closely monitored by
both employers and employees. This landmark legislation holds the potential to
reshape the hiring landscape in Cleveland and serve as a model for other cities
seeking to address pay inequality and promote fairness in the workplace. The
long-term effects will likely include increased competition for talent, a more
motivated workforce, and a stronger, more equitable Cleveland economy.
A Salary Ranges In All Job Postings
(Verse 1)
Downtown Cleveland, wind's off the lake
Something's shifting,
for goodness sake
April twenty-eighth,
twenty-twenty-five
Ordinance one-oh-four,
keepin' hopes alive
(Chorus)
Transparency's the name, equality's the game
No more secrets
hidden, it's all out in the frame
Salary ranges listed,
for all the world to see
Cleveland's raising
standards, for you and for me
(Verse 2)
Fifteen employees,
that's the magic number
If you're hiring here in Cleveland, under
Cleveland's thunder
Gotta post the pay,
from low to high
No more guessing, no
more trying to fly
(Verse 3)
Remember back when,
they'd ask your past
What were you makin'?
That feeling couldn't
last
Now they're forbidden,
that question's off the board
Past salary history,
completely ignored
(Chorus)
Transparency's the
name, equality's the game
No more secrets
hidden, it's all out in the frame
Salary ranges listed,
for all the world to see
Cleveland's raising
standards, for you and for me
(Bridge)
Think you can ignore
it?
Think you can just
breeze by?
Think again, my
friend, 'cause consequences lie
A thousand dollars,
first time you're caught
Five thousand dollars,
the lesson hard-bought
(Verse 4)
Third violation, within
five years' span
That's a serious
message, for every woman and man
Fairness and justice,
that's what we demand
A level playing field,
throughout the land
(Chorus)
Transparency's the
name, equality's the game
No more secrets
hidden, it's all out in the frame
Salary ranges listed,
for all the world to see
Cleveland's raising standards, for you and for
me
(Outro)
Cleveland, Cleveland,
rising to the call
Ordinance one-oh-four,
standing strong for all!
Cleveland, Cleveland,
leading the new way
Fair pay for everyone,
starting today!
