Philadelphia partner David Woolf was quoted in a Law360 article titled, “Pay Inquiry Bans to Get Crucial First Test in Philly.” The Chamber of Commerce of Greater Philadelphia has challenged Philadelphia’s recently passed pay history law, which bars employers and employment agencies from asking job applicants for their salary history. The Wage Equity Ordinance is intended to lessen to the wage gap between white males and women and minorities, however the Chamber of Commerce argues that it deprives businesses of their First Amendment rights.
In a federal lawsuit filed on April 6, the Chamber of Commerce asserted, among other things, that the City provided no evidence that inquiries regarding an applicant’s prior salary history have any relationship to the persistence of wage discrimination. While some argue that salary history information is not crucial information in the hiring process, David stated it takes away a key tool for employers.
“…When you get down to talking to someone about what it would take to get them to move from their job to another job, that’s valuable information,” David said. “Without that litmus test — ‘How much are you making now?’ — it makes the hiring process at a higher level very challenging and inefficient.”