New Pay Transparency Requirements for D.C. Employers in 2024
On June 30, 2024, the District of Columbia ("D.C.") will require employers to publicize salary ranges on their job postings and inform prospective job applicants of healthcare benefits associated with the position. D.C. employers will also be prohibited from inquiring about job applicants' prior wage history.
D.C.'s newest Wage Transparency Omnibus Amendment Act of 2023, which amends the Wage Transparency Act of 2014, now requires D.C. employers to include a pay range in job postings, to inform job applicants of healthcare benefits associated with the position, and prohibits D.C. employers from seeking information about job applicants' salary history.
These changes are expected to go into effect on June 30, 2024, upon passage of a 30-day congressional review period.
Key Changes
Starting June 30, 2024, D.C. employers:
- Must post the minimum and maximum salary or hourly pay in all advertised job listings;
- Must inform prospective job applicants about healthcare benefits associated with the position before their first interview;
- Are prohibited from screening prospective job candidates based on their salary history. Unlawful screening includes requiring prospective applicants to disclose their salary history as a condition of (a) being interviewed or (b) as a condition of being offered employment; and
- Must post a workplace notice to employees informing them of their rights under the Act.
Although no private right of action exists, the Attorney General has the authority to investigate and bring a civil suit against an employer for any violation of the Act for restitution, injunctive, compensatory, or "other authorized relief" on behalf of an individual or the public at large. If successful, the Attorney General will be entitled to (1) reasonable attorneys' fees and costs and (2) statutory penalties.
D.C. Joins Other Jurisdictions With Local Pay Transparency Laws
D.C. now joins California, Colorado, Connecticut, Hawaii (effective January 1, 2024), Illinois (effective January 1, 2025), Maryland, Nevada, New York, Rhode Island, and Washington state with similar pay transparency laws. DWT has previously provided guidance on these laws in California (here, here, and here), New York (here, here, and here), and Washington state (here and here).
Next Steps for D.C. Employers
The amended Act must pass a 30-day congressional review period, but D.C. employers should start taking proactive steps to ensure compliance with the law. Employers should consider undergoing a thorough internal audit of employee compensation in advance of posting salary ranges to evaluate whether there are any notable and unexplained discrepancies in pay between similar positions.
To comply with the law once it goes into effect, employers must do the following:
- include the minimum and maximum salary or hourly pay for every job posting;
- inform prospective applicants of the healthcare benefits associated with the position before their first interview;
- be mindful that requesting prospective applicants' salary history is prohibited; and
- post a workplace notice informing employees of their new rights under the amended Act.
As always, DWT will provide updates as needed. In the meantime, if you have any questions about your company's compliance, please contact legal counsel.