Ronald P. Sandmeyer Jr., president and chief executive officer of Sandmeyer Steel Co. of Northeast Philadelphia, a member of the Greater Northeast Philadelphia Chamber of Commerce, was one of 13 business leaders named in a federal lawsuit filed against the city that challenges the constitutionality of the city’s wage equity law.
The law, the first of its kind in the nation, is intended to close the gender wage gap.
The law forbids employers from asking applicants for salary history. The business leaders, led by the Chamber of Commerce for Greater Philadelphia and their president Rob Wonderling, believe the law is seriously flawed and anti-business. The law was scheduled to take effect May 23, but the city is holding it until there is a ruling on a motion on a preliminary injunction.
Sandmeyer Steel is joined by a bevy of powerhouse businesses including Comcast, Drexel University, Children’s Hospital of Philadelphia, Liberty Property Trust, and Day and Zimmerman.
The Board of Directors of the Greater Northeast Philadelphia Chamber of Commerce is aware of the issue, but has yet to take a formal position.
The law prohibits employers (directly or indirectly) from asking job applicants about their prior salary or requiring disclosure of salary history as a condition of employment. If employers somehow come across such information, they are prohibited from using it to make salary decisions, unless the job applicant knowingly, and willingly disclosed it.
“The Chamber of Commerce for Greater Philadelphia opposes Bill No. 160840 because the measure is flawed in multiple respects,” according to a statement on their web site.
“The Ordinance is a broad impediment to businesses seeking to grow their workforce in the City of Philadelphia. Along with a long series of other anti-business initiatives pursued by Philadelphia City government since 2009, the wage history ordinance is cementing a reputation for Philadelphia as being an anti-business city.
“Reflecting the views of its thousands of members, the Chamber has very serious concerns because the Ordinance contains numerous obstacles for businesses operating in the City, such as the exclusion of important information from the hiring process, no consideration for varying business needs, and potential civil and criminal penalties. The Ordinance makes searching for and recruiting top talent more difficult, which makes businesses in Philadelphia less competitive. The inevitable consequences will be companies choosing to do business elsewhere and the loss of jobs for city workers, among other negative impacts.
“Further, the Ordinance violates employers’ First Amendment rights by prohibiting them from asking about wage history. Despite the attempt by the City to characterize the Ordinance as an attempt to address gender wage inequity, there is no evidence that prohibiting inquiries into wage history will do anything to address wage inequity, a goal the Chamber and its members strongly support. In fact, the City rejected a proposed Chamber amendment that would actually have addressed wage inequity in Philadelphia. The Chamber’s goals are to address wage inequity instead of violating constitutionally protected speech rights with no demonstrated link to solving the real issue at hand, and to ensure open and honest conversation between employers and job candidates.
“The Philadelphia business community fully supports closing the gender wage gap and pledges to continue to seek ways to ensure that every worker is paid fairly regardless of gender. As an advocate of the regional business community, the Chamber recognizes that addressing the evolving demographic changes in our region is fundamental to the growth and sustainability of our Members. Creating an inclusive environment that engages individuals reflective of the full spectrum of our region is key to the success of Greater Philadelphia. This Ordinance, however, is not the answer to closing the gender wage gap.”