On April 6, 2017 the Chamber of Commerce for Greater Philadelphia filed a lawsuit against the City of Philadelphia and Philadelphia Commission on Human Relations, arguing that the Philadelphia Wage Equity Ordinance violates businesses’ freedom of speech. Our readers may remember that Philadelphia Mayor Jim Kenney signed this new legislation in January and is scheduled to take effect May 23, 2017.
Under the Ordinance, employers cannot inquire about wage history of prospective employees. The Ordinance makes it unlawful for an employer, employment agency, or employee to:
- inquire about a prospective employee’s wage history,
- require disclosure of wage history, or
- condition employment or consideration for an interview or employment on disclosure of wage history.
The goal of the Ordinance is to help remedy gender discrimination. The Plaintiff Chamber of Commerce for Greater Philadelphia, however, disagrees that the Ordinance will help eliminate pay disparities attributable to gender discrimination.
In The Chamber of Commerce for Greater Philadelphia v. City of Philadelphia and Philadelphia Commission on Human Relations, the Chamber of Commerce argues that the Ordinance violates the First and Fourth Amendments and the Due Process and Commerce Clauses of the United States Constitution. As stated in the lawsuit, there is no evidence that not asking about wage history is the best way to eliminate wage discrimination. It further alleges that the Ordinance fails to be clear about when an employer can safely rely on wage history information willingly disclosed by an applicant. Finally, the Chamber of Commerce argues the Ordinance violates the United States Constitution and Pennsylvania Law by regulating hiring decisions that occur outside the city. The Chamber of Commerce is asking the Court to enter a preliminary injunction preventing Defendants from giving effect to or enforcing the Ordinance.
Until the United States District Court for Eastern District of Pennsylvania makes a decision regarding the constitutionality of the Philadelphia Wage Equity Ordinance, employers doing business in the city of Philadelphia should continue to prepare for the new obligations. CPC will continue to follow the lawsuit against the City of Philadelphia and Philadelphia Commission on Human Relations.