Legislative Authority
The Fair Employment Wage Board is composed of two business community representatives, two labor organization representatives, a Mayor’s Office representative, and a Cleveland City Council representative.
Fair Employment Wage Law (FEWL)
The purpose of the FEWL is to provide a living wage to certain employees of Employers (as defined by the criteria listed below) who receive City assistance (including grants; economic development loans; tax credits, incentives and abatements subsidies; and bonds) that has an aggregate value at least $75,000.00, and the Employer has not been granted an exemption. It also applies to employees of Employers (as defined by the criteria listed below) and their subcontractors who enter City service contracts that have an aggregate value of at least $25,000.00, and the Employer has not been granted an exemption.
Employer Criteria: For-profit employers who receive such assistance or contracts with at least 20 employees at the time of execution of the contract and nonprofits with at least 50 employees whose salary ratio between the highest paid and lowest paid employees at such not-for-profit is more than five (5) to one (1).
Wage Theft & Payroll Fraud Prevention
Businesses, and any of their prospective subcontractors, seeking City services contracts or assistance (described in the FEW above) are required to report to the City’s FEWB any instances of a court or government agency finding that they or a subcontractor committed wage theft or payroll fraud within the last 3 years. Businesses that self-report those instances are not eligible to receive City assistance or contracts without a waiver from the FEWB. If a person fails to self-report such a finding against a business, they could be found guilty of a first-degree misdemeanor.
Under the law, any person employed by a city contractor or subcontractor who says they are the victim of wage theft or payroll fraud may file a complaint with the applicable City department, who would then notify the FEWB and the appropriate state or federal agency responsible for overseeing the type of violation.
Pay Transparency Law
Effective October 27, 2025, employers with 15 or more employees within the City are prohibited from asking job applicants about their current or previous salaries during the hiring process and all formal job postings must include salary ranges or pay scales, helping ensure greater transparency and fairness for job seekers.
The law aims to address longstanding wage disparities, particularly those affecting women and people of color.
Frequently Asked Questions
Pay transparency is the practice of openly sharing compensation information. Pay transparency helps to address wage disparities and discrimination based on an individual's membership in a protected class such as race, gender, age, religion or disability.
Employers are required to provide the salary range or scale for employment in the notification, advertisement, or other formal posting that offers the opportunity to apply for employment.
During the hiring process, employers are prohibited from:
- inquiring about an applicant’s compensation history;
- screening an applicant based on their current or prior compensation;
- relying solely on an applicant’s compensation history in deciding whether to offer employment or determining compensation; and
- refusing to hire or otherwise retaliating against an applicant who refuses to disclose their compensation history.
Private employers with at least 15 employees within the City of Cleveland must comply with this law.
The law does not apply to internal promotions or transfers, rehiring situations where salary history is known, or positions covered by collective bargaining agreements. It also excludes positions in federal, state, and local government, except for the City of Cleveland.
The Fair Employment Wage Board (FEWB) is responsible for investigating complaints and imposing financial penalties.
Employers are given the opportunity to cure violations without penalty within 90 days of the FEWB determining a violation occurred. If the violation is not addressed through changes in policy and practice or by providing the FEWB with a credible plan to fix the violation, civil penalties will be assessed.
If a violation occurred and the complaint is not resolved within 90 days, a civil penalty will be assessed. These penalties range from up to $1,000 for first offenses to up to $5,000 for those with two or more past violations during the preceding 5 years. The FEWB is tasked with assessing the civil penalty.
A complaint can be filed within 180 days of the violation occurring.
The FEWB will review the complaint within 90 days.
- Name of respondent (the employer and/or person alleged to violate the law)
- Address of respondent
- Other identifying information of respondent
- Description of the violation
- Documentation of the alleged violation, including but not limited to job application material or links to a website that Inquires about the Salary History of an Applicant, to the extent that such documentation is available.
- Optional: aggrieved party’s signature and identifying information, such as name, address, phone number, and email address.