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D.C. Employers Have to Put together for Extra Than Humidity This Summer time: New Wage Transparency Regulation Efficient in June (US)

On January 12, 2024, the District of Columbia joined a rising checklist of jurisdictions with wage transparency legal guidelines after Mayor Muriel Bowser signed into regulation the Wage Transparency Omnibus Modification Act of 2023 (the “Act”). The Act amends components of the Wage Transparency Act of 2014, in addition to introduces a number of new employee-friendly necessities that can go into impact on June 30, 2024, together with an employer obligation to reveal pay ranges in job postings.

What Does the Act Require?

The Act introduces varied new necessities for D.C. employers. First, marketed “job listings” and “place descriptions” should embody the bottom and highest projected wage or wage price based mostly on the employer’s good-faith perception on the time of posting. “Job listings” and “place descriptions” are usually not outlined; nevertheless, based mostly on the language used, the requirement is more likely to additionally apply for inner place postings, together with promotion and switch alternatives.

Moreover, earlier than a primary interview for employment, candidates have to be suggested what healthcare advantages will probably be supplied with the place. Employers don’t must disclose a full schedule of healthcare advantages. Moderately, per the D.C. Council, employers can fulfill their obligation by disclosing the “existence of healthcare advantages.”

The Act additionally prohibits employers from discriminating based mostly on an applicant’s wage historical past. Employers can not ask an applicant to reveal wage historical past, require that an applicant’s wage historical past fulfill some standards or search an applicant’s wage historical past from a former employer. Additional, employers can not retaliate towards workers who focus on “compensation,” which the Act defines as “all types of financial and nonmonetary advantages an employer supplies or guarantees to supply an worker in change for the worker’s providers to the employer.” This may amend current D.C. regulation which solely prohibits retaliation for discussing “wages.” D.C. employers should submit a discover within the office notifying workers of their rights underneath the Act.

Noncompliance with the Act’s necessities is punishable by civil fines of $1,000 for a primary violation, $5,000 for a second violation and $20,000 for every subsequent violation. Staff and candidates do not need a personal reason behind motion towards an employer for noncompliance; solely the D.C. Legal professional Normal might implement the Act.

Who’s Topic to The Act?

The Act applies to any enterprise that employs a number of worker within the District, so even an employer with a single distant worker within the District will probably be topic to its necessities. The one exceptions are for the District and Federal governments.

Subsequent Steps for Employers?

D.C. employers ought to start planning for compliance now, together with by compiling and reviewing all related pay knowledge and their firm’s pay insurance policies. Employers must also plan to coach workers concerned in interviewing and recruiting to keep away from asking about an applicant’s wage historical past. Wage transparency legal guidelines have already been adopted by California, New York, Illinois, Colorado, Massachusetts and Washington State, and related legal guidelines doubtless will proliferate to different jurisdictions. Employers can mitigate the dangers created by new wage transparency legal guidelines by proactively figuring out pay fairness points and different potential areas of concern inside their workforces. Squire Patton Boggs will proceed to observe developments associated to the Act and its influence on D.C. employers.

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