A recent report was provided concerning Attorney Karl Heideck analyzing the reason the Judge stopped the new salary history law of Philadelphia. In January 2017, Mayor Jim Kenney signed a new law that caused Philadelphia to be the first US city that forbids private sector’s employers from inquiring applicants’ salary histories. The law was created in hopes to close the wage gap between Pennsylvania’s females and males, according to the Society for Human Resource Management. To obtain this desired effect, employers would be barred from utilizing job candidate salary information acquired without the knowledge and permission of the candidate. Employers are also forbidden to ask job applicants directly for their previous salaries, they can’t retaliate or punish job candidates who refuse to give salary details, and they can’t force candidates to reveal their previous salary to obtain employment.
However, weeks before the new law was scheduled to come into effect, the city’s Chamber of Commerce presented legal challenges saying it’s unconstitutional. It was predicted by many that this law will negatively impact employers located outside of the city of Philadelphia, but who do business there even if it’s done through third parties. Fines, such as $2,000, will be given to violators of this new provision. And furthermore, companies, like Comcast Communications, threatened legal actions concerning the First Amendment Rights being violated and other perceived compliance burdens. Thus, on April 6, 2017, a district court motion was filed by the Chamber of Commerce.
As a result, the city filed in early June 2017 to have the lawsuit dismissed due to the ambiguity of how the businesses would be affected with this new law, and the courts agreed with this motion. This ruling makes sense because the Chamber of Commerce didn’t make it possible for any legal action response from the government. They didn’t provide any business identities in which would affect them.
So, at the time being, it’s uncertain if any obstacles will show up concerning this new ruling. Most likely, there may be resistance of this new obligation whether or not the Chamber would modify the original complaint.
About Karl Heideck
Karl Heideck is an attorney and a prolific writer based in Philadelphia who specializes in risk management and compliance and litigation. His services range from risk management advisement to commercial litigation. As a writer, Karl Heideck explains new legal developments as well as news in his blogs. And since 2015, the Hire Counsel listed him as a contract attorney. Before that, he was a project attorney for Pepper Hamilton LLP and an associate for Conrad O’Brien.