The City of Philadelphia has agreed to honor the decision to delay the Wage Equity Ordinance that was scheduled to go into effect May 23rd until the lawsuit for a preliminary injunction brought by the Chamber of Commerce for Greater Philadelphia is resolved. Our readers may recall that on January 23, 2017, Philadelphia Mayor Jim Kenney signed the Wage Equity Ordinance prohibiting employers from inquiring about an applicant’s wage history and from basing salary decisions on that wage history unless it is “knowingly and willingly” disclosed by the applicant. Employers are also prohibited from taking adverse action against an applicant or employee who does not comply with a wage history inquiry.
On April 6, 2017 the Chamber of Commerce for Greater Philadelphia filed a lawsuit against the City of Philadelphia alleging the new Ordinance would burden businesses and violate their First Amendment rights. The City agreed that it would not enforce the Ordinance until a decision regarding the constitutionality of the Ordinance was made by the United States District Court for the Eastern District of Pennsylvania. Just recently, Judge Mitchell S. Goldberg rejected the lawsuit because the Chamber of Commerce had failed to identify a business or businesses that would be affected by the new wage equity law. The Judge has granted the Chamber of Commerce 14 days to file an amended complaint. In response to this decision, the City of Philadelphia will continue to delay implementation until the chamber files the amended complaint. The City has released the following statement:
We are gratified by the Judge’s decision. If the Chamber files an amended complaint that cures the standing defects identified by the Court, the City will adhere to its agreement not to enforce the order until the Chamber’s motion for preliminary injunction is resolved. If no amended complaint is filed within the period stipulated by the Court, the City will begin taking steps to enforce the ordinance, which seeks to improve wage equity for women and minority workers in Philadelphia.
In the meantime, covered employers should be ready to comply with the Ordinance. CPC will continue to monitor the Chamber of Commerce’s next action. Stay tuned!