A federal judge blocked Philadelphia's ban on salary history inquiries on First Amendment grounds, but also ruled it is unlawful for employers to rely on wage histories at any stage of the employment process—including negotiating employment contracts—unless the person knowingly and willingly discloses her or his salary history to the employer.
The decision comes at a time when measures banning salary history inquiries have become increasingly popular, but are now likely to be challenged in court.
Should the ruling be upheld on appeal, it could impact similar laws that seven states and seven other localities have adopted.
Practical implications: Despite the First Amendment right to ask about salary history, employers may still be wary of asking the question if it provides evidence of a violation of what the court did uphold: reliance upon salary history in setting pay.
