Podcasts

Summary

Frantz Ward Associate and Host Josh A. Friedman sits down with Associate Ben F. Kerns to break down Cleveland’s new Pay Transparency Ordinance, which took effect Monday, October 27, 2025. They discuss which employers and applicants are covered, what the ordinance requires in job postings, and how restrictions on salary history inquiries will impact hiring practices. Josh and Ben also explore the enforcement process and offer practical compliance insights for employers operating in or around Cleveland.

Podcast First Aired: December 5, 2025

Transcript

Josh Friedman:

Welcome to another edition of Frantz Ward’s podcast, Shoveling Smoke, where we discuss current legal issues affecting the business community and our daily lives. I’m Josh Friedman, an Associate in the firm’s Labor and Employment Group, and your host for today’s edition. With me today is Ben Kerns, an Associate in the Labor and Employment Group, and today we’re going to delve into the Pay Transparency Ordinance.

Ben Kerns:

Thank you, Josh. So, Cleveland City Council in April of this year followed Cincinnati, Toledo, and Columbus in passing some form of pay transparency ordinance. As of this recording, 14 states have implemented pay transparency laws, with a dozen more cities, localities implementing the same. And broadly speaking, the city’s stated purpose is to eliminate what it has deemed discriminatory pay practices during the hiring phase. So essentially, the ordinance is seeking to prevent employers from so-called “hiding the ball” with respect to potential salaries and job postings and from basing salary proposals on the applicant’s prior earnings.

Josh Friedman:

So, what kind of employers does this apply to?

Ben Kerns:

So, the ordinance defines employer as really any private employer with 15 or more employees working within the city of Cleveland. And this includes non-profits, really any private employer. The city itself is included, it’s just federal and state employers are not included. And to confirm whether your employer is within the ordinance’s purview, Cleveland Open Data is a useful resource to see the city of Cleveland’s geographic boundaries.

And one area that’s a little unspoken within the ordinance is whether remote workers are included within the 15 or more employees working within Cleveland. For these purposes, we would say that they are included if the employer knows and they are working within the city.

Josh Friedman:

So Ben, what does the ordinance actually mandate?

Ben Kerns:

One of the big portions of the ordinance that many employers are confronting is the inclusion of salary ranges in all job postings, notifications, or offering the opportunity to apply for employment.

Josh Friedman:

Does it apply to all positions that an employer is hiring for?

Ben Kerns:

Most, but not all, for example, independent contractors are explicitly excluded from the purview of the ordinance.

Josh Friedman:

What does the ordinance say about what the range must be?

Ben Kerns:

It doesn’t. Some states, for example, such as New York, require good faith estimates of the salary range at the posting stage. Cleveland’s ordinance does not. However, posting a salary range of one dollar to one million dollars is probably not advisable. So, operating in general good faith that the posted salary range is an estimate made in good faith is a good starting point.

Josh Friedman:

So, what does the ordinance prohibit?

Ben Kerns:

So, it prohibits inquiring or basing their proposed salary on the applicant’s prior salary or otherwise disfavoring an applicant for their refusal to provide such information.

Josh Friedman:

So, does this apply to all applicants then?

Ben Kerns:

No. A covered applicant under the ordinance is when the job will be performed within the boundaries of the city of Cleveland and whose application is being considered, solicited, or processed within the city.

Josh Friedman:

What happens if an applicant just decides on their own volition to inform the employer of their prior salary?

Ben Kerns:

There’s nothing wrong with that from the employer’s side. However, if the employer uses that information to discriminate, disfavor the employee or applicant in formulating the salary proposal, that’s where issues may come up.

Josh Friedman:

Are there any exemptions from these prohibitions?

Ben Kerns:

Of course. So, actions taken pursuant to federal or state laws that authorize relying on salary history and formulating an offer, that’s fine. Internal transfers, that’s fine. Salary history that’s learned through a routine background check, whether the salaries are determined by a collective bargaining agreement and government employees are not within the purview – other than the city.

Josh Friedman:

So, who’s enforcing the ordinance and what are the penalties?

Ben Kerns:

Yeah, so the Fair Employment Wage Board is the body tasked with enforcing these requirements. Notably, the president of the board recently stated to cleveland.com that they are not looking to come down with a stick, quote unquote.

In addition, the ordinance directs the board to develop educational materials and make recommendations to interested parties. So essentially, the complaint process starts with any person who believes that the employer they’re applying with violated the ordinance. And this must be done within 180 days. The complaint simply describes the violation, identity of the employer, and documentation of the violation. Then following the complaint, the Fair Employment Wage Board has 90 days after receiving the complaint to determine whether the complaint included the requirements for filing. So, for example, that’s the description of the violation, identity of the employer, etc. Then upon that review period, the board will issue the complaint and the board’s basis for finding a violation within 10 days of its findings.

Josh Friedman:

What are the penalties associated with that?

Ben Kerns:

At a starting point, the penalties are relatively non-existent. It starts with attempted education and conciliation. For example, the board will consider a complaint resolved and will get rid of it if the employer corrects its deficient practices and provides a credible plan to commit no further violations.

Josh Friedman:

So, what happens if it’s not resolved?

Ben Kerns:

So, that’s when the civil penalties come in. The amounts depend on whether the employer has violated the ordinance in the past. For the first time offenders, it starts at $1,000 and ranging up to $5,000 for a third time or more. Again, the civil penalties only attach upon the complaint failing to be resolved at the complaint stage.

Josh Friedman:

Gotcha. So, it sounds like this is still a pretty fluid situation with it being a relatively new ordinance.

Ben Kerns:

Yeah, and within the ordinance, it directs the Fair Employment Wage Board to create educational materials, like I said, so there should be more information coming down the pipe.

Josh Friedman:

Gotcha. And when there is more information, stay tuned to Shoveling Smoke and we’ll keep updates for you. And that wraps up another edition of Shoveling Smoke.

This podcast is available on https://www.frantzward.com, as well as Spotify and Apple Podcasts. Shoveling Smoke is a production of Evergreen Podcasts. Our producers and audio engineers are Sean Rule Hoffman and Gray Longfellow. For more information, please visit our website at https://www.frantzward.com.

This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship, nor is it intended to suggest or establish standards of care applicable to particular lawyers in any given situation. Prior results do not guarantee a similar outcome. Any views, opinions, or comments made by any external guest speakers should not be attributed to Frantz Ward or its individual lawyers.