Legal Blog

Wage Transparency Laws Effective Soon: What to Know

Job search app on smartphone: woman searching for a professional occupation onlineRecruitment and retention remain a top priority and challenge for many employers. A critical component of the recruitment process is identifying competitive salaries. Two new District of Columbia and Maryland laws require posting job salary ranges as part of every job opportunity (for public and private employers. In D.C., the “Wage Transparency Omnibus Amendment Act of 2023” will become effective as of June 30, 2024, while Maryland’s “Equal Pay for Equal Work – Wage Range Transparency” law will become effective on October 1, 2024. I recommend that employers consider the following in implementing the D.C. law/seeking to prepare for the Maryland law:

  1. Both laws require posting/providing a good faith/realistic salary range for all positions (including internal opportunities). Creating an unrealistic range (i.e., $20,000-$200,000) could potentially result in scrutiny and penalties from the government (which increase substantially for reach offense). I recommend that employers perform an internal audit to identify available budgets for all positions/staffing so that the provided ranges are as realistic as possible. Since existing employees will be able to see the ranges/postings, I also recommend that employers address any significant pay disparities (to avoid potential claims).
  2. The D.C. law expressly prohibits inquiring about salary history. I recommend that employers update their internal policies and trainings to remove any such inquiries from the screening/interview process.
  3. Both laws apply to employers of all sizes and do not create clear thresholds for addressing hybrid workers. I recommend that employers err on the side of caution and implement salary ranges for all potential opportunities in DC/Maryland. Employers should also promptly obtain/disseminate the required postings identifying employees’ rights under the new laws.

Feel free to reach out to me to discuss how to best implement wage transparency for your organization.

ABOUT THEODORA STRINGHAM

tstringham@offitkurman.com | 703.745.1849

Theodora Stringham is a member of Offit Kurman’s Commercial Litigation, Real Estate Law and Transactions and Employment Law practice groups. Theodora’s diverse experience is focused on executing sustainable plans for real estate development and employee matters. She provides comprehensive representation for everyday growth issues, including, but not limited to, re-zonings, site plan approvals, eminent domain/valuation concerns, employment discrimination and disciplinary issues. Theodora’s scope of representation ranges from identifying potential liability and providing counseling/trainings, all the way through representation at trial.