The Chamber of Commerce for Greater Philadelphia’s lawsuit seeking to block a Philadelphia ordinance that prohibits employers from asking questions about an applicant’s salary history was dismissed by the US District Court for the Eastern District of Pennsylvania on May 30, 2017.  The Chamber has 14 days to file an Amended Complaint to correct a standing issue, according to Judge Mitchell S. Goldberg.
 
The ordinance was signed into law in January 2017 and was scheduled to take effect on May 23, 2017.  In addition to prohibiting questions about salary history, the ordinance prohibits employers from relying on wage history for an applicant in determining the wages for the individual, unless the applicant knowingly and willingly disclosed the information.  The Chamber filed a complaint challenging the constitutionality of the ordinance and sought to enjoin the ordinance from enforcement on April 6, 2017.  While the case was pending, the City declined to enforce the ordinance.
 
Judge Goldberg found that the Chamber’s original complaint failed to show that the Chamber has standing to challenge the ordinance because it did not identify a member who will suffer specific harm as a result of the ordinance.  To revive its claim, the Chamber will have to point to a member that “actually inquires about or relies on wage history.”
 
Local laws prohibiting employers from asking about salary history are designed to remove existing barriers to equal pay by requiring employers to pay workers fair wages for jobs rather than base their pay on salary history.  These types of laws have become increasingly popular since Massachusetts enacted a state-wide prohibition last year.  Several cities also prohibit city agencies from requesting applicants’ salary history, including Pittsburgh, New Orleans, and New York City.
 
Judge Goldberg's decision is available here and our original blog post on the Philadelphia ordinance is available here.