U.S. - Ohio - Toledo pay transparency law guide
Introduction
Effective June 25, 2020, Toledo employers with 15 or more employees are required to adhere to a salary history ban and pay transparency requirement. The law does not apply to public or government employers, except for the City of Toledo.
Under the law (Chapter 768 of the Pay Equity Act) employers may not ask for nor screen job applicants based on their pay history. They may not require that an applicant's pay history, benefits or other compensation satisfy minimum or maximum criteria. Employers may, however, discuss applicants' pay expectations.
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Toledo Pay Transparency Requirements
Toledo's law focuses on a salary history ban, but has a pay transparency component. Applicable employers must, upon reasonable request, provide the pay range for a position to a job applicant who has been provided a conditional offer of employment by the employer.
The Risks of Non-Compliance
If an Employer fails to comply with any provision of Chapter 768.03, the applicant can seek compensatory damages, reasonable attorney's fees, the costs of the action, and such legal and equitable relief as the court deems just and proper against the employer.
Applicants have a two-year window from when the violation occurs to seek damages.
How Can Trusaic Assist with Toledo Pay Transparency Law Requirements?
The goal of pay transparency laws is to promote practices that lead to a more equitable compensation environment. Similar to salary history ban laws, requiring pay ranges on job postings promotes fair pay practices and holds organizations accountable.
If implemented thoughtfully and strategically by an organization, pay transparency can promote a better work environment where employees believe they are paid fairly. Providing salary ranges on job postings can also positively narrow the applicant pool and improve the hiring experience.
Absent salary range information, a job candidate could go through a multi-week interview process only to discover the job offer is far below their salary expectation. This wastes the candidate’s time and causes financial and reputational damage to the employer.
The task of moving toward full pay transparency can be daunting for an organization.
1. Comply - Use Trusaic’s Salary Range Finder to ensure fair and competitive pay at the time of hire:
Salary Range Explainability: Salary Range Finder helps you establish and post competitive and equitable pay ranges to confidently comply with pay transparency laws.
2. Correct - Use PayParity and OpportunityParity to understand, explain and resolve pay disparities:
Trusaic’s pay equity software alleviates the concern of moving to full transparency by identifying the root cause of pay disparities and remedying them. Additionally, it supports the creation of equitable, compliant job postings and enables a consistent approach to pay range disclosure.
This empowers your organization to execute compensation plans with complete confidence that pay equity is at the center.
OpportunityParity™, a feature of Trusaic’s workplace equity analysis software, offers a complete solution for pinpointing and remedying equity concerns in your organization's hiring, promotion, and retention processes.
Drawing from diverse global directives like the OFCCP, EEOC, EU Pay Transparency Directive, and more, it ensures fairness and inclusivity throughout your talent lifecycle, irrespective of geographical boundaries or regulatory frameworks.
How OpportunityParity Supports Your Goals:
- Improves equitable career advancement: Build equity into every aspect of your talent management process, from recruitment to retention.
- Analyzes and improves opportunity equity: Identify and address disparities in hiring, promotion, performance assessment, and retention.
- Helps you achieve workplace equity objectives: Use forecasts to help achieve your diversity objectives and accelerate progress with data-driven insights.
- Builds a culture of trust and transparency: Elevate human capital, bolster people sustainability, and fortify social responsibility metrics by fostering an environment of trust and transparency.
Leveraging Trusaic’s workplace equity software suite will help ensure you remain in compliance with Toledo's pay transparency law requirements.