Washington, D.C. Enhances Pay Transparency and Expands Protections Regarding Compensation Discussion and Wage History

Nilan Johnson Lewis PA
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Washington, D.C. added its name to the growing list of jurisdictions enhancing pay transparency requirements. Washington recently amended its ordinances to (1) require employers to disclose salary range or hourly pay in vacant positions and (2) further restrict employers from inquiring regarding an employee’s previous compensation and wage history.

Beginning June 30, 2024, employers in Washington, D.C. will be required to “provide the minimum and maximum projected salary or hourly pay in all advertised job listings and position descriptions.” In addition to disclosing the salary range or hourly pay, employers are required to disclose “the existence of healthcare benefits that employees may receive, before the first interview.” While this information does not need to be included in the posting, it must be communicated to prospective employees before the first interview. The statute applies to all private employers that employ at least one employee in Washington, D.C.

Washington had previously prohibited employers from barring or disciplining employees who inquired about or discussed their own wages or those of other employees. Washington has expanded these protections to include discussions regarding “all forms of monetary and nonmonetary benefits an employer provides or promises to provide an employee in exchange for the employee’s services to the employer.”

The amendment also prohibits employers from asking applicants or their former employers to disclose the applicant’s wage history. However, an employer may inquire about wage history from a prior employer once an offer of employment has been made, if the applicant has provided written authorization to the employer to receive the information.

Finally, employers are also required to notify employees of their rights under this statute by posting a notice in a conspicuous place where employees congregate in its workplace. The Attorney General may investigate violations and initiate civil action against an employer or any individual violating this statute. If an employer fails to comply with the provisions, it may face a civil fine of $1,000 for a first violation, $5,000 for a second violation, and $20,000 for each subsequent violation.

Private employers with one or more employees in Washington, D.C. should ensure their job postings include the required compensation information and ensure that the availability of healthcare benefits is communicated to prospective employees before first interviews. Employers should also review their interview procedures to ensure that they are not inquiring about an applicant’s wage history.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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