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[Real Life HR] Cleveland’s New Pay Transparency Law

[Real Life HR] Cleveland’s New Pay Transparency Law

Q: What is Cleveland’s Pay Transparency Law, and how do I prepare for the changes?

A: Starting October 27, 2025, private-sector employers in Cleveland with 15 or more employees will operate under a new set of hiring and posting requirements designed to boost transparency and fairness in the workplace.

The law requires:

  1. Salary range disclosure in all job postings or advertisements.
  2. A ban on salary history inquiries.

In short, Cleveland employers with 15+ employees must include a salary range or scale in every job posting or advertisement. They may not ask applicants about their current or past compensation, nor can they base hiring decisions or offers on salary history.

What Employers Should Do

  1. Review all job postings, advertisements, and internal transfer documents to ensure salary ranges or scales are included.
  2. Remove any questions about prior salary from applications, interviews, and screening processes.
  3. Train hiring managers and recruiters on the new rules and any exceptions that apply.
  4. Develop documented compensation frameworks and range definitions to support transparency requirements.

Refer to The Cleveland Pay Transparency Law Compliance Checklist for step-by-step guidance.

Exemptions

The law does not apply to:
  • Internal transfers or promotions within the same employer.
  • Situations where an applicant voluntarily discloses compensation information.
  • Roles where pay is determined through collective bargaining, or when federal, state, or local law explicitly authorizes the use of salary history.
  • Government positions outside the City of Cleveland.

Penalties

Failure to comply may result in fines ranging from $1,000 to $5,000 for continued violations. However, employers will have 90 days to correct any issues before penalties are enforced.  For more information, visit the City of Cleveland Fair Employment Wage Board

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