Washington, D.C. joins a growing group of states requiring employers to include projected salary ranges in job postings and to restrict the use of pay history in setting pay.
On Jan. 12, 2024, the mayor of D.C. signed the Wage Transparency Omnibus Amendment Act, which, among other things, requires private employers, regardless of size, to disclose pay ranges in all job postings and advertisements. Because the D.C. budget is controlled by Congress, the Amendment was sent to Congress for a 30-day review on Jan. 22, 2024, with a projected law date of March 9, 2024. The new law is scheduled to go into effect on June 30, 2024.
The Amendment requires employers to include in job postings the minimum and maximum projected salary or hourly wage for the position. Employers not only must disclose the projected salary in public job postings, but they also must do so in any internal job postings of the position. The Amendment also requires employers to disclose to prospective employees the existence of other benefits (such as healthcare or bonuses) before the first interview.
The Amendment prohibits employers from screening job applicants based on wage history. The Amendment does not specifically address remote positions.
Employers will be required to post a notice in the workplace notifying employees of their rights under this law. The notice must be posted in a conspicuous place in at least one location where employees congregate.
The new requirements under the Amendment will also affect the PERM labor certification process for employers sponsoring foreign nationals for “green cards.” Employers can prepare for these changes by:
- Reviewing and modifying, as needed, all recruitment postings (both external and internal) to ensure these postings include the required salary ranges.
- Reviewing internal interviewing protocols to ensure disclosure of benefit information upon request or before conducting a screening interview (whether by phone or in person) with an applicant for the PERM position.
- Reviewing internal interviewing protocols to ensure no historical pay information is requested from prospective employees or from their prior employers. Indeed, this would not even be relevant because the applicant for the PERM position will know the salary range.
- Training employees involved in the PERM process on the benefit disclosure requirements and the salary history restrictions.
The law aims to increase pay equity and to address historical wage gaps. While the law does not create a private right of action for employees, the Amendment provides the attorney general the authority to investigate violations and to bring civil actions against an employer or seek remedies on behalf of individuals or the public. Employers found to have violated the law may be subject to civil fines ranging from $1,000 to $20,000 per occurrence.
Jackson Lewis attorneys are available to assist in navigating the best strategy for PERM processes in light of the many new pay transparency laws.
