Washington, DC, Mayor Muriel Bowser signed legislation on January 12 requiring that all covered employers must disclose pay ranges in all job postings and advertisements and also disclose the existence of any additional benefits before interviews are conducted.
The law is an amendment to the DC Wage Transparency Act of 2014 and will undergo a 30-day congressional review before becoming effective. Provided that the law passes congressional review, it will go into effect on June 30, 2024. The amendment also provides additional employee protections regarding prospective employees’ wage history.
PAY TRANSPARENCY REQUIREMENTS
Similar to other salary disclosure laws recently enacted, such as the laws in California, Colorado, New York, and Washington, the amendment requires employers to include the minimum and maximum projected salary or hourly pay in all job postings and advertisements. When providing this pay range, the employer must have a good faith belief that, at the time of the posting, it would provide the listed pay for the advertised job.
The new DC law also requires employers to disclose to prospective employees, before the first interview, the existence of other benefits (such as healthcare and bonuses) that an employee may receive. Based on the language of the amendment, these benefits do not need to be included in the posting; however, the employer must communicate them before the first interview. Employers may want to include them in the listing for convenience.
The law also requires an employer to disclose pay range and benefit information to a prospective employee upon request.
COVERAGE UNDER THE LAW
The law applies to all private employers with 25 or more employees in DC.
The law does not address whether it applies to positions that could be filled by an employee working remotely.
PROTECTION OF COMPENSATION INFORMATION AND WAGE HISTORY
The amendment expands on the law’s existing protections regarding pay history. Previously, the law already prohibited employers from requiring employees to refrain from discussing their wages or disciplining employees who inquired about or discussed their wages or the wages of other employees.
The amendment revised these provisions to now protect discussions of “compensation” (rather than “wages”), which it defines as “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 adds new protections regarding a prospective employee’s wage history information. The amendment prohibits employers from screening prospective employees based on their wage history, “including by requiring that a prospective employee’s wage history satisfy minimum or maximum criteria or by requesting or requiring as a condition of being interviewed or… considered… that a prospective employee disclose… [their] wage history.”
Additionally, under the amendment, employers cannot ask the prospective employee’s prior employer for the candidate’s wage history. The amendment defines “wage history” as information related to compensation an employee has received from other or previous employment.
The amendment does not discuss situations where wage history may be considered, such as situations in which an employee voluntarily discloses their wage history while negotiating their compensation. However, a memorandum from the DC chief financial officer to the DC Council regarding the amendment provides that an employer may inquire about wage history from a prior employer once an offer of employment has been made and the prospective employee has provided written authorization to the employer to receive the information.[1]
NOTICE REQUIREMENT
Employers must notify employees of their rights under the DC Wage Transparency Act of 2014 by posting a notice in a “conspicuous place in at least one location where employees congregate.”[2]
In addition to notice of the pay range and benefit disclosures required in the amendment, employees must now receive notice of all rights under the DC Wage Transparency Act. This includes notification that an employer cannot require that employees refrain from inquiring about, disclosing, comparing, or otherwise discussing their own wages or the wages of another employee.
Employers must also notify employees that they cannot be discharged, disciplined, or otherwise retaliated against for such inquiries or conversations. Finally, employers must also notify employees that they cannot prohibit them from lodging a complaint, testifying, or participating in an investigation or proceeding relating to a violation of this law.
ATTORNEY GENERAL ENFORCEMENT
The amendment provides the attorney general with the power to investigate whether violations of the DC Wage Transparency Act have occurred. The attorney general also is authorized to initiate a civil action against an employer or any other person violating this law for restitution or for injunctive, compensatory, or other authorized relief for any individual or for the public. This includes any attorney fees and costs in connection with the pursuit of such action and any other statutory penalties equal to the administrative penalties provided by law.
An employer found to have violated the act shall be assessed a civil fine by the mayor of $1,000 for the first violation, $5,000 for the second violation, and $20,000 for each subsequent violation. There is no private right of action under this law.
NEXT STEPS FOR EMPLOYERS
In advance of the law’s June 30, 2024 effective date, DC employers with 25 or more employees should review all job postings and advertisements to make sure they include the required information. Additionally, employers should plan to disclose other benefit information, whether in the posting itself or in separate communications with prospective employees before their first interview.
Employers should also review their interviewing/hiring protocols to ensure that they do not request historical pay information from prospective employees or their past employers. Those involved in hiring should be trained on how to respond to a prospective employee’s inquiry about pay and benefits.
[1] See Council of the District of Columbia Committee on Executive Administration and Labor Committee Report, November 16, 2023.
[2] See Racial Equity Impact Assessment: Committee Print, Bill 25-0194, November 16, 2023.
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