Although the coronavirus is ongoing, employers need to be aware of other regulatory changes taking effect outside of the pandemic. Every month we cover the latest human resources-related regulatory changes that are coming up this month and next.

Pay-History Inquiries Disallowed by City of Toledo, Ohio

Who:

• Employers located within the city of Toledo that have 15+ paid employees, including seasonal and part-time employees
• Excludes government units, except the City of Toledo

When: Effective June 25, 2020

What: The City of Toledo enacted Ordinance 173-19, the Pay Equity Act, which prohibits employers from asking applicants their compensation or benefits history. In addition, employers may not use such information to screen applicants, make a hiring decision, or determine wages.

Specifically, employers may not ask applicants or their previous employers, in writing or otherwise, for their pay history. Employers also may not conduct a search of publicly available records to obtain such information.

There are certain exceptions to the Ordinance, such as employees who apply for internal transfer, applicants with a salary history on file who are re-hired within five years of termination, and positions for which compensation is established by collective bargaining.

The Ordinance also requires employers to provide the pay scale for a position to an applicant to whom the employer has given a conditional offer of employment if the applicant requests it.

The purpose of the act is to prevent discriminatory hiring practices and thereby begin to correct the gender wage gap. Instead of basing decisions on previous pay, employers are to base wages on job responsibilities and level of the applicant’s experience.

How:

• Eliminate prohibited questions pertaining to salary and benefits history from your written application, oral screening and interview processes, and background- and reference-check processes.
• Write a policy that addresses the new requirements.
• Do not include salary history in your determination of wages for a position, unless that position falls under an exception.
• Add a training program that addresses the new requirements.

Additional Resources:

Ordinance 173-19

Judge Blocks Enforcement of Paid Sick Leave Ordinance in Dallas, Texas

Who:

• Private-sector employers located within the city of Dallas that have 6+ covered employees

When: Original effective date: August 1, 2019; enforcement was planned to start April 1, 2020

What: A U.S. District Court judge granted a preliminary injunction against Dallas Ordinance No. 31181, the Paid Sick Leave Ordinance. It requires employers to provide one hour of earned paid sick time for every 30 hours worked by an employee who works 80+ hours per year for that employer.

Enforcement was to begin April 1, 2020, for employers with six or more covered employees and August 1, 2021, for employers with five or fewer employees.

The judge ruled that city-based ordinances are in conflict with the state constitution and statutory law—specifically the Texas Minimum Wage Act—and shall be decided by the state legislature.

How:

• Watch for the Texas state legislature to address this issue in the future.

Additional Resources:

Dallas Ordinance No. 31181

Temporary Injunction Against the Paid Sick Leave Ordinance

In addition to regulatory changes outside of a pandemic, KPA has also been providing COVID-19 state regulatory updates and will continue to as each state opens and gets back to work.