A shift to greater wage transparency continues across the U.S. as the District of Columbia is set to require employers to include salary ranges for open positions. The Pay Scale and Benefits Disclosure Amendment, more commonly known as the Wage Transparency Omnibus Amendment Act, is scheduled to go into effect on June 30, 2024.

Employer Obligations

This new law allows prospective employees to have greater access to the pay scales of positions from employers. Specifically, the law now requires employers operating in the District, regardless of size, to disclose "the minimum and maximum projected salary or hourly pay in all job listings and position descriptions advertised." These advertised pay ranges 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."

The law does not limit disclosure of the position salary or hourly pay to just public advertisements, but also applies to internal announcements related to promotion or transfer opportunities. Further, employers will be required to post a notice within their workplace notifying employees of their rights under this law. The law specifically provides that the wage disclosure must be provided in "all job listings and positions descriptions advertised" without defining those terms. This suggests that the law impacts postings regardless of the medium, either internally or externally.

Employers are also now prohibited from screening candidates based on their wage history and prevents employers from asking about a candidate’s wage history.

Also included in the amended law is a requirement for employers to disclose the "schedule of benefits, including bonuses, healthcare and other wellness benefits, stocks, bonds, options, equity, and nonmonetary remunerations" an employee may receive. This requirement doesn’t put a specific timeline on when this must take place other than before the first interview. Therefore, while employers are not required to disclose the availability of health care benefits in job advertisements, they must do so prior to the applicants' first interview.

It is important to note that the law does not create a private right of action for employees, but employers who violate the law may be subject to civil fines up to $1,000 for the first violation, up to $5,000 for a second, and up to $20,000 for any subsequent violation. The D.C. Attorney General will have enforcement power over this law and may seek these remedies on behalf of individuals or the public.

Going Forward

Many employers may have already addressed these issues if they have locations covered by other state or local pay transparency laws such as California, Colorado, Massachusetts, and New York. However, those that have not will want to revisit their recruiting and hiring policies and procedures in order to ensure compliance with these new wage transparency requirements. Employers should review all job postings, including those for internal transfer promotion opportunities, to ensure that posting for any openings comply with the law. Employers should also make plans to disclose the availability of health care benefits to all applicants ahead of the interview process. Further, employers may need to review interview procedures and guidelines to make sure that a candidate’s wage history is not playing a role in the decision-making process.

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