D.C. Enacts New Pay Transparency Law

On Friday, January 12, 2024, the District of Columbia enacted a new pay transparency law, joining states like California, Colorado, Illinois, and New York, which have already enacted such legislation.  The legislation must first clear a 30-day congressional review period and, absent a Congressional vote to overrule the legislation, it will take effect June 30, 2024.

This new law applies to all employers with at least one employee in D.C. (excluding the federal and D.C. governments) and requires such employers to:

• Include the minimum and maximum projected salary or hourly wage in all “job listings and position descriptions advertised.” While the statute does not define job listings, its requirements presumably apply to both internal and external postings.  The salary band must be what the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion, or transfer opportunity.  Note that the statute does not on its face limit these requirements to postings for jobs that will be performed in the District;
• Disclose to prospective employees, before the first interview, the healthcare benefits that the employee may receive.
• Post a notice in its workplace notifying employees of their rights under the law.

The law prohibits employers from using a candidate’s previous salary or pay range to screen who is eligible for the advertised position and also from requesting or requiring disclosure of their wage history as a condition of being interviewed or considered for employment. The new legislation also authorizes the Attorney General, acting in the public interest, to investigate and file suit against an employer for any violations of the Act.  An employer who violates the law may be liable for injunctive, compensatory, and any other authorized relief available to any individual or the public at large, as well as reasonable attorney’s fees and statutory penalties.

Employers with at least one employee in D.C. should review their job postings over the next few months and ensure that they are set up to comply with this latest pay transparency law, in addition to other state pay transparency laws that may be applicable.  Crowell attorneys are available to assist with any questions.