PAY TRANSPARENCY

Washington State’s Pay Transparency Law went into effect on January 1, 2023. The law mandates that employers with 15 or more employees disclose salary ranges and benefit information in job postings.

An employer’s non-compliance with the law can result in civil penalties, and $5,000 in compensation to affected employees.

The purpose of the Pay Transparency Law is to promote fairness in compensation and reduce wage disparities.

Key Provisions of the Law

RCW 49.58.110 is the Washington statute that sets forth the State’s Pay Transparency Law. The law falls under Washington’s Equal Pay and Opportunities Act (EOPA).

• Salary Range Disclosure: Employers with 15 or more employees are required to include a wage scale or salary range for every job posting. This range must reflect the most reasonable and expected compensation for the position, encompassing both the minimum and maximum pay.
• Benefits Information: In addition to salary disclosures, employers must provide a general description of all benefits associated with the position. This includes healthcare, retirement plans, paid time off, bonuses, and other forms of compensation.
• Applicability: The law applies broadly to any job postings that recruit Washington-based employees. This includes remote positions and internal job transfers. Employers cannot evade compliance by stating they will not accept applications from Washington residents.

Challenges and Risks for Employers

Employers will likely face a few challenges with complying with Washington’s Pay Transparency Law. In addition, non-compliance will result in some real risks.

As an example, keep the following in mind:

• Determining Salary Ranges: Establishing appropriate salary ranges can be complex, especially in competitive job markets where pay can vary widely based on experience and qualifications.
• Detailed Benefits Descriptions: Providing comprehensive descriptions of benefits requires careful consideration of how these offerings align with employee expectations and market standards.
• Potential Legal Risks: In Washington state, non-compliance with the Pay Transparency Law can result in both administrative penalties from the Department of Labor and Industries (L&I) and potential civil lawsuits by affected individuals. As to the latter, non-compliant employers may be required to pay actual damages in the range of $5,000 to affected employees.

Impact on Employees

The Pay Transparency Law will have two main impacts on employees and candidates. With clear salary ranges available upfront, candidates can negotiate more effectively during the hiring process.

By requiring disclosure of pay information, the law aims to address historical wage disparities that disproportionately affect women and minority groups.

Contact Nolan Lim Law Now

Our firm can help if you were negatively affected by an employer’s failure to comply with Washington’s Pay Transparency Law. We can help determine if you have suffered damages, and if so, we will fight to get you the compensation you deserve.

NL Law Firm has years of experience negotiating large settlements with employers, and our attorneys are skilled at actively using the courts to protect the rights of employees.