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Columbus, Ohio Ordinance Prohibits Employers from Inquiries into an Applicant’s Salary History

Client Alert

Effective March 1, 2024, Columbus employers are prohibited from inquiring into an applicant’s salary history. Specifically, the ordinance provides that it is an unlawful discriminatory practice to:

  • Inquire about the salary history of an applicant for employment;
  • Screen job applicants based on their current or prior wages, benefits, other compensation, or salary histories (including requiring that an applicant's history satisfy minimum or maximum criteria);
  • Rely solely on the salary history of an applicant in deciding whether to offer employment to an applicant, or in determining the salary, benefits, or other compensation; and
  • Refuse to hire or otherwise disfavor, injure, or retaliate against an applicant for not disclosing salary history.

Additionally, employers may not communicate with an applicant's current or prior employers to obtain an applicant’s salary history. Moreover, employers may not search publicly available records for the purpose of obtaining an applicant’s salary history. However, these prohibitions do not bar employers from discussing an applicant’s expectations regarding salary, benefits, and other compensation.

As defined by the ordinance, an “applicant” is any person applying for employment (whether interviewed or not) to be performed within the City of Columbus and whose application (in whole or in part) will be solicited, received, processed, or considered in the city of Columbus. An “employer” is defined as employing 15 or more persons within Columbus. Job placement and referral agencies are deemed employers when they operate on behalf of an “employer” as defined by the ordinance.

In response to an employer’s violation of the ordinance, an applicant may file a complaint with the Community Relations Commission. Depending on the number of violations, employers could face up to $5,000 in civil fines.

As provided within its text, the ordinance’s purpose is to eliminate hiring practices that “perpetuate issues of systemic discrimination related to the wage gap and wealth gap for women, especially women of color.”

In preparing for March 1, Columbus employers should assess and modify their current hiring practices to comply with the ordinance once it is in effect.

Should you have any questions regarding the ordinance or its implications, please contact BMD Member Daphne Kackloudis at dlkackloudis@bmdllc.com.


Corporate Transparency Act to be Re-evaluated

Recent federal rulings have impacted the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. While reporting requirements were briefly reinstated, FinCEN has now paused enforcement and is reevaluating the CTA. Businesses are no longer required to submit reports until further guidance is issued. For updates and legal counsel, contact BMD Member Blake Gerney.

Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.