Pay Transparency Laws
Late October 2025, Cleveland enacted a new pay transparency law. This law, which is found in Chapter 669 of the City of Cleveland’s code of ordinances, seeks to prevent discriminatory hiring practices. The ordinance requires employers who employ 15 or more people within the city of Cleveland to include the salary range on job postings. Additionally, the ordinance prevents employers from inquiring about an applicant’s past or current salary history. If an employer violates this law, a civil penalty may be assessed against it in an amount of up to $5,000. The goal of the law is to help eliminate pay gaps and prevent workers from being underpaid.
Any person may allege that an employer has violated Section 669.02 by filing a written complaint within 180 days of the alleged violation. The Fair Employment Wage Board (FEWB) will review the complaint and determine if a violation has occurred. If it determines a violations has occurred, FEWB will work with the employer in an attempt to resolve the violation. If the complaint has not been resolved within 90 days since the employer received a copy of the complaint, then the board may asses a civil penalty up to $5,000, dependent on the amount of violations.
Employers who employ employees within the city of Cleveland should update their hiring practices to ensure compliance with this new ordinance.
Similar laws were enacted previously in the state in cities such as Toledo and Columbus. The Pay Equity Act which was enacted in June 2020 in Toledo, makes it unlawful for employers to inquire about salary history of an applicant for employment. However, unlike the new Pay Transparency Act in Cleveland, employers in Toledo only need to provide a pay scale for a position to an applicant applying for employment upon a reasonable request. Employers in Cleveland must include the salary range on job postings, where Toledo employers are not required to do the same.
Changes to Ohio’s Minimum Wage Law
New year, New minimum wage. Starting on January 1, 2026, the minimum wage in Ohio was scheduled to increase to $11 per hour for non-tipped employees and $5.50 per hour for tipped employees. This is a 2.8% increase from 2025’s rates of $10.70 and $5.35 respectively. The minimum wage increase applies to employers who gross $405,000 or more. Employers who gross less than the $405,000 threshold shall follow the current federal minimum wage of $7.25 per hour. The increase in minimum wage correlates to the rate of inflation and is directly tied to the Consumer Price Index for urban wage earners and clerical workers (CPI-W). Employers are required to display the official 2026 Minimum Wage poster which can be found at the following link 2026_Minumum_Wage_Poster.pdf.
Ohio’s E-Verify Law
On December 19, 2025, Ohio Governor Mike DeWine signed the E-Verify Workforce Integrity Act. The Act is set to take effect on March 19, 2026, and requires E-Verify participation for any nonresidential construction company along with subcontractors and labor brokers for nonresidential construction. E-Verify is an Internet-Based system that compares information entered by an employer from an employee’s Form I-9, Employment Eligibility Verification, to records available to the U.S. Department of Homeland Security and the Social Security Administration to confirm employment eligibility. The Act is used as a tool to confirm the identity and legal working status of each employee employed by the nonresidential construction contractor, subcontractors, and labor brokers. A contractor, subcontractor, or labor broker are required to keep a record of this verification for three years after the date of hire or for one year after the date the employee’s employment is terminated, whichever is later.
If the contractor, subcontractor, or labor broker receive a notice of final nonconfirmation for an individual from the E-Verify program, the nonresidential construction contractor, subcontractor, or labor broker shall not continue to employ that individual. A final nonconfirmation notice occurs when they receive a case result indicating that the employee’s employment eligibility could not be confirmed and instructions stating the employer should close the E-Verify case associated with the employee.
The Act also states that the Attorney General will prescribe a complaint form for an individual to allege violations of Sections 4151.02 or 4151.03 of the Revised Code. The Attorney General is to investigate any violation alleged in the prescribed complaint form so long as the Attorney General determines the complaint contains enough sufficient facts to reasonably conclude a violation may have occurred.
If after an investigation, the Attorney General determines that reasonable evidence exists that a violation occurred, the Attorney General will issue a notice of violation which:
- Directs the contractor, subcontractor, or labor broker to provide satisfactory proof no later than 10 days after the notice is issued that the individuals employed are authorized to be employed under the federal Immigration Reform and Control Act of 1986;
- Specifies any penalty based on the Attorney General’s determination;
- If the Attorney General determines it is likely the contractor, subcontractor, or labor broker committed two or more willful violations of Sections 4151.02 or 4151.03 of the Revised Code, informs the contractor, subcontractor, or labor broker that they are disqualified from bidding on or participating in any future state contract for a period not to exceed two years;
- Notifies the contractor, subcontractor, or labor broker of its right to request a hearing.
The fines assessed by the Attorney General vary from $250 for each violation of 4151.02 of the Revised Code to as much as $25,000 for each violation under 4151.03 of the Revised Code. If a court, pursuant to an action brought under 4151.05 of the Revised Code, determines that a contractor, subcontractor, or labor broker knowingly employed an unauthorized alien, the court shall authorize each agency to permanently revoke any license issued by the agency.