Starting January 1, 2023, many Washington employers will be required to disclose salary range and benefits in their job postings. Today, Governor Jay Inslee signed Senate Equal Pay Bill 5761, amending Washington’s Equal Pay and Opportunity Act to require all employers with 15 or more employees to disclose the salary range or scale and a general description of all benefits and other compensation in each job posting. Washington joins Colorado and New York City as the only jurisdictions, so far, to require employers to disclose salary ranges in job postings. A number of other cities or states require disclosure of salary information to applicants at various stages of the hiring process, but not public disclosure in the job posting.

The Washington Equal Pay and Opportunity Act (EPOA), c. 49.58 RCW, targets disparities in income and opportunity among workers in Washington, particularly by gender. The EPOA prohibits wage discrimination based on gender and includes the prohibition of career advancement based on gender. In addition, the EPOA prohibits an employer from retaliating against an employee for asking questions about the employee’s salary and the reasons for their salary and lack of opportunities for advancement. The new amendments replace the requirement to provide salary information after an initial job offer. The ban on employers asking applicants for a salary or wage history, which was added in 2019, remains.

For employers, the new changes mean they will have to be much more open about wages and employee benefits. The days of “pay commensurate with experience” in a job posting are coming to an end. Employers will need to think carefully about the appropriate range they wish to advertise to potential employees and competitors. Employers offering extensive benefits will want to pay attention to the requirement to include benefits and other compensation information. The law requires employers to provide “a general description of all benefits and other compensation to be offered to the hired candidate.” This wording is identical to Colorado law (CRS § 8-5-201(2)), so it is plausible that Washington is developing similar rules interpreting this provision. In Colorado, the rule states that employers must provide “a general description of all benefits the employer provides for the position, including health care benefits, retirement benefits, benefits allowing for days off paid (including sick leave, parental leave and paid leave). holidays or vacations) and any other benefits that must be reported for federal tax purposes, but not benefits in the form of minor benefits. 7 CCR 1103-13-4.1.1(C). The inclusion of “other benefits that must be reported for federal tax purposes” can provide guidance on issues such as parking, sports facilities, and stock options, to name a few. just a few, until Washington enacts rules on the scope of the benefits description.

Finally, employers offering remote work opportunities to employees in Washington may be required to comply with the new law. The law is limited to employers with 15 or more employees; however, it is unclear whether this requirement counts employees working outside of Washington or only those in Washington. Following the adoption of the salary disclosure requirement in Colorado, national job postings for remote positions would have excluded Colorado residents to avoid having to comply with the disclosure requirement.[1] Significant amounts of remote work are likely to continue in the post-COVID labor market and employers will need to consider whether excluding jurisdictions is a viable compliance plan or whether posting pay scales is the new norm. .

Understanding and respecting the rapidly changing field of employment law is essential for employers and employees. If you need help, Lasher’s labor and employment law team is here to help.

[1] https://www.denverpost.com/2021/06/26/colorado-remote-work-job-postings-salary-range/

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