Legislative lowdown: Pay transparency requirements are coming to Washington, DC

The nation’s capital has become the latest jurisdiction to adopt pay transparency measures, as DC Mayor Muriel Bowser recently signed legislation that will require employers to disclose salary ranges in job advertisements.

The legislation was passed by Washington, DC’s city council on Dec. 19 and signed into law by Bowser about one month later. It amends DC’s 2014 Wage Transparency Act, which states that employers cannot prohibit workers from discussing wages with other employees.

Under the amended legislation, employers with at least one employee in DC—except for the District and Federal Government—must include the “the minimum and maximum projected salary or hourly pay” that they believe “in good faith” they’ll pay for all jobs they advertise. They’re also banned from inquiring about or screening prospective employees based on their wage history. In the context of this law, “wage history” means any information that relates to compensation candidates have received from prior employment.

In addition to salary information, DC employers are required to disclose the “existence of healthcare benefits” with candidates before their interview.

The law will take effect June 30, 2024, provided it isn’t blocked by Congress.

How DC employers can prepare. Some 10 states and several jurisdictions already have pay transparency laws similar to DC’s in effect. The recent wave of legislation has spurred more employers to disclose wage or salary information, even if they’re not based in a jurisdiction that already requires it.

For employers that have already started including salary information in their job openings to comply with the handful of laws in effect, “you should consider whether your current approach to disclosures will be compliant in DC,” partners with law firm Seyfarth wrote in a blog post. Those who aren’t yet sharing salaries should “consider how they will appropriately identify pay ranges to include in their job postings.”

Additionally, employers should train HR to disclose information about healthcare benefits prior to candidates’ interviews, as well as comply with the requirements surrounding wage history, the Seyfarth partners wrote.

Though the law doesn’t specify whether it applies to remote workers, employers “should remain cognizant of where their workforce is located and whether their workforce has a DC presence,” law firm Foley & Larder advised.