Ohio's Salary Transparency Regulations in 2025: Prohibiting Salary History Inquiries & Compliance Directions
Amidst the shifting landscape of pay laws, Ohio employers are grappling with a mosaic of salary regulations. With no statewide rulebook, local jurisdictions are stepping up, introducing salary history bans, pay disclosure requirements, and transparency measures that are reshaping hiring practices. Already, Cincinnati, Columbus, and Toledo have implemented salary history bans and wage disclosure requirements, with Cleveland brewing up a similar ordinance for 2025.
Meanwhile, Ohio unveils a new pay stub disclosure requirement, mandating employers to issue comprehensive wage statements, detailing pay periods, gross wages, net wages, itemized additions and deductions, and hours worked for hourly employees. Failure to comply could spark disgruntled employees, prompting complaints to the Director of Commerce, ultimately jeopardizing an employer's reputation.
This pay stub disclosure law, however, does not compel pay transparency. Instead, it adds an accountability layer to employers' wage practices, acting as a supplement to the current city-level salary history bans and disclosure requirements.
Cincinnati pioneered the pay transparency movement in 2020, enacting Ordinance No. 83. This law prohibits inquiring about an applicant's salary history, screening candidates based on prior wages, or snubbing applicants who decline to share their past earnings. But, unlike Columbus and Toledo, Cincinnati does not enforce salary disclosures in job postings. Employers must disclose pay ranges upon request, provided a conditional job offer has already been extended.
Columbus followed in Cincinnati's footsteps by introducing Ordinance 0709-2023 in 2024. Designed to amplify pay equity and snuff out discrimination, the law bars salary history inquiries, using past pay to influence job offers, and accessing public records for salary records. Noncompliance incurs monetary penalties, ranging from $1,000 to $5,000, and allows affected applicants to file complaints within six months.
Toledo's Pay Equity Act turned heads in 2020, with one of the most stringent salary history bans in the state. Banning not just inquiries but also the usage of salary history in hiring and pay-setting decisions, Toledo's law applies to private employers with 15 or more employees. Prior to offering a job, employers must disclose pay ranges. A lack of a clear definition for "pay scale," however, leaves uncertainty about what information must be disclosed, potentially exposing employers to legal challenges.
Cleveland is on the brink of imposing a new pay transparency law (Ordinance No. 104-2025), which shares similarities with existing Ohio city salary history bans and transparency measures. If enacted, the new law will prohibit employers from asking about salary history and using prior wages to form job offers. It will also require employers to post salary ranges in job postings, strengthening Cleveland's commitment to pay equity. Fines range from $1,000 to $5,000, depending on an employer's compliance history.
In essence, Ohio's disjointed approach to pay equity means multi-city employers must adapt to localized hiring strategies. Companies should promptly:
- Edit hiring policies: Eliminate salary history questions from applications and interviews.
- Educate HR teams: Ensure managers discover city-specific compliance obligations.
- Set up salary bands: Ready for disclosure requirements by predefining pay ranges.
- Inspect payroll and pay stubs: Guarantee compliance with Ohio's 2025 wage disclosure law.
Massive shifts in pay equity laws across the U.S. make Cleveland's bold stance on pay transparency less of an obstacle and more of an opportunity. By embracing fair budgeting practices, employers can lessen legal risks while bolstering their reputation as preferred employment options.
Enrichment Data:
Pay Equity Laws in Ohio
Cleveland
- Cleveland City Council is proposing a ban on employers asking job applicants about their salary histories. The proposed ban aims to combat wage discrimination and ensure fair pay for low-income workers. Employers who fail to comply could face fines up to $5,000.
- Cleveland's proposed legislation also requires employers to post salary ranges in job postings, striving to promote pay equity and transparency.
Toledo
- Toledo's Pay Equity Act is one of the most stringent salary history bans in the state, barring not just inquiries but also the use of salary history in hiring and pay-setting decisions.
Ohio
- Ohio's Pay Stub Protection Act, signed by Gov. Mike DeWine on January 8, 2025, requires all Ohio employers to provide detailed written or electronic pay statements to their employees. This law takes effect on April 8, 2025, mandating employers to disclose specific wage and hour information for all employees. Noncompliance could result in legal consequences.
[1] Pay Equity Information. (n.d.). Retrieved September 9, 2023, from https://leg1.ohio.gov/legislation/active-legislation/details?id=ga134-sb220
[4] Cleveland Salary History Ban Information. (n.d.). Retrieved September 9, 2023, from https://www.current-inc.com/ohio/cleveland-salary-history-ban
- Ohio's shift in pay laws includes a push for salary history bans and wage transparency, with Cleveland planning to implement such an ordinance in 2025.
- Employers in Ohio are now required to provide comprehensive pay stubs, detailing gross wages, net wages, and deductions, due to new disclosure requirements.
- Failure to comply with Ohio's pay stub disclosure law could result in disgruntled employees and potential damage to the employer's reputation.
- Cincinnati's 'Ordinance No. 83' prohibits employers from inquiring about salary history, screening candidates based on prior wages, and snubbing applicants who decline to share their past earnings.
- While Columbus and Toledo enforce salary disclosures in job postings, Cincinnati only requires employers to disclose pay ranges upon request.
- Ohio's disjointed approach to pay equity means employers must adapt to localized hiring strategies, including editing hiring policies, educating HR teams, and setting up salary bands.
- If Cleveland's proposed pay transparency law ('Ordinance No. 104-2025') is enacted, employers will be required to post salary ranges in job postings to promote pay equity and transparency.
