Equal Pay and Opportunity Act
In a recent judgment, the Superior Court of the State of Washington held employers like Insight Global LLC liable for violating the “Pay Transparency” requirements. The court awarded $5,000 in damages plus attorney fees to each applicant who applied to a non-conforming posting. Effective January 1, 2023, Washington State’s “Pay Transparency” Law requires all employers with more than 15 employees, including at least one Washington-based employee, to comply with this law. This includes employers without a physical presence in Washington State.
The “Pay Transparency” Law mandates all job postings to disclose the opening wage scale or salary range of the job and a general description of all benefits and other compensation offered in job postings for Washington positions and for remote work that could be performed by a Washington employee. A non-compliant employer may be liable to pay actual damages plus 1% interest per month. Further, employers may face fines of up to $500 for a first violation and up to $1,000 or 10% of damages (whichever is greater) for repeat violations, plus fees, interest, costs, and other relief.
We would also like to inform you that other states, including California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, New York, and Rhode Island, have similar pay transparency laws with varying requirements. Several other states have tabled bills that may make such requirements more common across the United States.
These requirements can have significant implications for IT and Engineering employers, who often have many online job postings soliciting employees for remote work options. This could also affect all job postings conducted for PERM recruitment purposes, as most IT Consulting jobs are roving positions.
Employers must ensure that their job postings comply with “Pay Transparency” laws. Should you have any questions, please get in touch with our office, and we will be happy to assist you.