Washington D.C. Becomes the Latest Jurisdiction to Enact Pay Transparency Law
Posted by Donald Kalfen on January 23, 2024 in Client Alerts
Legislation to take effect on June 30, 2024 will expand Washington D.C.’s current law to require employers to disclose pay ranges and healthcare benefits and limit employers’ ability to screen applicants based on wage history.
On January 12, 2024, Washington D.C. enacted a new pay transparency law which will require employers with at least one employee in the District of Columbia to provide in job postings the minimum and maximum projected salary or hourly pay. In addition, the new law requires employers to provide to job candidates before the first interview information about employee healthcare benefits. Lastly, the law places certain limits on employers’ ability to seek or use a job candidate’s wage history. The law is subject to Congressional review and will become effective if Congress does not object to the law during a 30-day review period which ends on February 11, 2024.
Historically, pay transparency laws were aimed at protecting job seekers by barring employers from asking about an applicant’s salary history. In 2021, Colorado was one of the first states to take the additional step of requiring employers to list salary ranges for posted jobs. Similar laws have been enacted in California, Hawaii, Illinois, New York, Rhode Island and Washington state, with bills pending in several states. Some cities also have enacted pay transparency ordinances.
These laws generally prohibit inquiries into an applicant’s pay history and require employers to list salary ranges for posted roles, though individual laws differ as to which employers are subject to the law and what must be disclosed.
Meridian anticipates more jurisdictions will enact similar laws and will continue to monitor developments.
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The Client Update is prepared by Meridian Compensation Partners’ Governance and Regulatory Team led by Donald Kalfen. Questions regarding this Client Update or executive compensation technical issues may be directed to Donald Kalfen at 847-347-2524 or dkalfen@meridiancp.com.
This report is a publication of Meridian Compensation Partners, LLC, provides general information for reference purposes only, and should not be construed as legal or accounting advice or a legal or accounting opinion on any specific facts or circumstances. The information provided herein should be reviewed with appropriate advisors concerning your own situation and issues.
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