Washington Mayor Muriel Bowser signed legislation earlier this month that would require employers to disclose pay ranges in job postings and prohibit employers from screening prospective employees based on their salary history. The new law will apply to all employers with at least one employee in the District of Columbia, excluding the federal government, and will go into effect June 30, subject to congressional approval.
Under existing law, D.C. employers are prohibited from:
(1) requiring that employees refrain from inquiring about, disclosing, comparing or discussing their own wages or the wages of another employee
(2) discharging, disciplining, interfering with or otherwise retaliating against an employee for disclosing, comparing or discussing their wages or the wages of another employee
(3) prohibiting or attempting to prohibit an employee from lodging a complaint or testifying, assisting or participating in an investigation or proceeding related to a violation of the statute
Under the new law, employers will remain subject to these existing prohibitions and also be forbidden from screening prospective employees based on their wage history. As a result, once the law goes into effect, employers may not require a prospective employee's wage history to satisfy minimum or maximum criteria, nor may an employer request or require, as a condition of being interviewed or considered, a prospective employee to disclose their wage history. Employers will similarly be banned from seeking an applicant’s wage history from a prior employer.
The act will also require that employers provide the minimum and maximum projected salary or hourly pay in all advertised job listings and position descriptions – including positions that would be considered a promotion or transfer opportunity for an existing employee. This posted range must cover the lowest to the highest salary, or hourly pay, that an employer in good faith believes at the time of the posting that it would pay for the position.
Additionally, the new law will require that employers disclose the existence of available health care benefits to applicants prior to the first job interview. Salary and benefits information must also be provided to prospective employees upon request.
Failing to comply with the statute could result in stiff penalties. Employers may be issued a civil fine of $1,000 for a first violation, $5,000 for a second violation and $20,000 for each subsequent violation of the statute. Additionally, the law empowers the attorney general to obtain relief, such as restitution, compensatory damages, attorney’s fees, statutory penalties and injunctive relief for the benefit of an individual or the public.
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