Beginning June 30, 2024, Washington, D.C. employers will be required to disclose salary or hourly pay ranges and benefits information for open positions. The new law also establishes certain employee protections related to discussions concerning employee compensation.

Wage & Benefits Disclosure

The new law, which was signed by Mayor Muriel Bowser on Jan. 12, 2024, requires D.C. employers, regardless of size, to provide “the minimum and maximum projected salary or hourly pay in all job listings and position descriptions advertised.” The pay range disclosed should be “the lowest to the highest salary or hourly pay that the employer in good faith believes at the time of posting it would pay” for the open position.

Further, employers must not only disclose an open position’s salary or hourly pay range in public job advertisements, but they must also do so in any internal announcement concerning promotion and transfer opportunities.

While the law does not define the terms “job listings” and “position descriptions,” presumably this includes postings on job boards, company websites and social media platforms. These terms would also seemingly include any medium by which an employer advertises internal opportunities. If an employer is unsure as to whether they are required to disclose an open position’s salary or hourly wage range, they should err on the side of caution and disclose it.

There are many hospitality employers with vacant positions that only pay the minimum wage. Many of these employers also take the tip credit against its minimum wage obligations for such positions, such as servers, bartenders, runners, and bussers. Unfortunately, the law does not address whether an employer with no flexibility in the pay rate can simply advertise that an applicant will only be paid the minimum wage then in effect, and/or whether a tip credit will be taken against the applicant’s wages. Employers are urged to keep an eye out for further guidance from the district on this matter.

Lastly, although employers are not required to disclose the availability of healthcare benefits in job advertisements, the law does require employers to disclose such benefits to an applicant prior to the first interview. Although the law’s language does not provide more insight into exactly what is required to be disclosed, the law’s legislative history suggests that the mere disclosure of the existence of health benefits — without any further information regarding the schedule of benefits — would suffice to comply with the law.

Employers May Not Retaliate Against an Employee for Discussing “Compensation”

Current D.C. law prohibits an employer from retaliating against an employee who discusses “wages.” The new law expands this protection and prohibits an employer from retaliating against an employee who discusses “compensation,” which is defined as “all forms of monetary and nonmonetary benefits an employer provides or promises to provide an employee in exchange for the employee’s services.” The law does not expound upon the meaning of “nonmonetary benefits,” but it presumably includes healthcare and other fringe benefits. We expect that the district will provide more guidance on this as we get closer to the law’s effective date.

Employers May Not Inquire Into Pay History

The new law prohibits an employer from screening job applicants based on wage history. As such, employers may not:

• Ask an employee any questions related to their previous salary or hourly wage rate during the interview process
• Require that an applicant’s wage history satisfy the minimum or maximum salary or hourly wage range being offered for the open position
• Request that an applicant disclose their previous salary or hourly wage rate
• Ask an applicant’s previous employer for information related to the applicant’s prior salary or hourly wage rate

Required Notice of Rights Poster

While not yet published by the district, employers will also be required to display a poster discussing an employee’s rights under the new law in a conspicuous place in the workplace. We expect that the district will publish on its website a copy of the required poster as we get closer to the effective date.

Takeaway

While the law does not create a private right of action for employees, employers who violate the law may be subject to penalties of up to $1,000 for the first violation, up to $5,000 for the second violation and up to $20,000 for each subsequent violation.

The district joins a number of states and localities that have recently enacted wage transparency laws, including New York and New York City. Before the law takes effect on June 30, D.C. employers should review all job postings (including internal transfer or promotion offers) to ensure that they comply with the law. Employers should also review their interview procedures to ensure that a job applicant’s wage history does not play any role in the hiring process.

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