Cleveland’s New Equal Pay Ordinance: How HR Services and Fractional HR Can Help You Stay Compliant

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Jun 23
2 min read

Updated: Jun 25

As Cleveland employers face new legal requirements around pay equity, the role of HR—particularly outsourced and fractional HR services—has never been more important.

Effective October 27, 2025, Cleveland’s revised Equal Pay Ordinance places new obligations on employers doing business with the city. Unlike prior laws in Columbus or Cincinnati, which focused on banning salary history questions, this ordinance introduces real accountability—requiring companies to show that they’re working to eliminate racial and gender pay gaps.

If your organization is applying for Cleveland city contracts, tax incentives, or economic development grants, this is a compliance issue you can’t ignore. But even beyond legal risk, this is an opportunity to modernize your compensation structure, recruiting strategy, and executive oversight.

Who’s Impacted by Cleveland’s Equal Pay Law?

The ordinance applies to:

Employers with 50+ employees
Any company seeking contracts, grants, or tax incentives from the City of Cleveland
Organizations receiving more than $50,000 annually in city financial support

That includes nonprofits, private-sector businesses, and firms bidding for public-private partnerships. HR leaders, CFOs, and C-suite executives should be evaluating their readiness now.

What Employers Must Do (And How HR Services Can Help)

To qualify for or renew city contracts, employers must submit:

An Equal Pay Certificate or signed statement of compliance
Evidence of “reasonable efforts” to ensure pay equity across gender and race

This isn’t just a checkbox. It demands a thorough, strategic approach—one that many organizations aren’t equipped to handle in-house.

5 Ways Fractional HR Can Help You Comply (and Thrive)

Conduct a Pay Equity Audit: A fractional HR partner can help assess pay practices across departments and identify disparities—without the cost of full-time staff.
Revise Compensation Policies and Hiring Practices: We help standardize how pay decisions are made, especially during executive recruiting and growth hiring.
Support C-Suite Accountability: Executive leadership is responsible for ensuring compliance. Our C-Suite HR consulting helps leaders understand the strategic and legal risks tied to inequitable pay.
Document and Track Compliance: Whether it’s building a pay equity roadmap or preparing for a city audit, our outsourced HR services ensure your efforts are visible and verifiable.
Build Equity Into Recruiting: Recruiting the right talent means attracting diverse candidates and offering transparent, fair compensation. We embed this into every recruiting strategy we create.

Why It Matters

Cleveland’s ordinance is part of a national trend toward pay equity enforcement. Employees and job seekers—especially at the executive and professional level—are increasingly demanding transparency and fairness in how organizations manage compensation.

Companies that ignore this shift risk more than lost contracts—they risk losing talent, reputation, and market advantage.

Need Help? TalentSENSE Can Deliver.

At TalentSENSE, we help businesses of all sizes—from startups to established enterprises—navigate the complexities of compliance, build equitable workplaces, and hire with confidence.

Whether you need fractional HR leadership, custom recruiting services, or an HR audit, we’re here to help.