On February 6, 2020, the Third Circuit Court of Appeals, the highest federal court in Pennsylvania, upheld the constitutionality of a city ordinance prohibiting Philadelphia employers from asking job applicants about their salary histories. The Third Circuit determined that Philadelphia lawmakers relied on substantial evidence that banning inquiries regarding an employee’s salary history will help women and minorities overcome past discriminatory pay decisions. Therefore, the ordinance did not violate businesses’ rights to freedom of speech.
The Philadelphia Ordinance makes it unlawful for an employer to:
The Third Circuit’s decision will likely deter the business community from future constitutional challenges of salary history ban legislation in Philadelphia and nationwide. Indeed, workers in many cities and states, including New York, are protected by similar laws that restrict businesses from inquiring about an employee’s wage history. Workers who believe that they have been the victim of improper salary history inquiries should speak to an attorney to investigate their claims.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi focuses on complex civil litigation, including: securities, antitrust, employment, and consumer class actions. The firm is headquartered in New York, and maintains offices in Delaware, Pennsylvania, Georgia and California. Since its founding in 1995, Faruqi & Faruqi continues to serve as lead or co-lead counsel in high-profile cases that ultimately provide significant recoveries to investors, consumers and employees.
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About Patrick J. Collopy
Patrick J. Collopy is an Associate in Faruqi & Faruqi’s New York office and focuses his practice on employment law and wage and hour class action litigation.