U.S. - Washington pay transparency law guide
Introduction
Effective Jan. 1, 2023, Washington employers with 15 or more employees are required to provide a minimum and maximum salary range on all job postings.
The law (Senate Bill 5761) amended Washington State's previous pay transparency law that required applicable employers to disclose a salary range to job applicants upon a job offer.
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Washington Pay Transparency Requirements
Washington State's law requires applicable employers to provide a salary range and a general description of all of the benefits and other compensation to be offered to the hired candidate on all job postings. The law applies to any postings done through a third party as well.
The law also requires employers to provide a salary range to employees for any internal transfers or promotions.
Employment Equity Standards
The Washington Equal Pay and Opportunities Act prohibits gender pay discrimination. Under the Act, it is unlawful to base an employee's pay or career advancement opportunities on their gender. Employees also have the protected right to discuss their wages and have the right to access certain wage and salary information.
Gender cannot be a reason for pay differences between employees with similar jobs. Determining if employees have similar jobs is based on skill, effort, and responsibility, not based on job titles. Differences in pay for similar jobs may be acceptable only in certain circumstances.
Differences in pay must be based on legitimate Wage Influencing Factors. Employers bear the burden of proof to justify why pay differences exist. An employee's previous wage or salary history cannot be used to justify gender pay differences.
Employers cannot limit or deprive an employee of career advancement opportunities on the basis of gender.
The Risks of Non-Compliance
A job applicant or an employee is entitled to the remedies in RCW 49.58.060 and 49.58.070 for violations of the Washington pay transparency law requirements. Recovery of any wages and interest must be calculated from the first date wages were owed to the employee.
Under Washington Law (RCW 49.58.070), employees can seek monetary damages from employers who violate the Pay Transparency Law, including a penalty of $5,000 for violation of the law. Additionally, Washington Law (RCW 49.58.060) also allows the State Department of Labor to investigate violations and impose civil penalties on employers.
How Can Trusaic Assist with Washington State's Pay Transparency Law Requirements?
The goal of pay transparency laws is to promote practices that lead to a more equitable compensation environment. Similar to salary history ban laws, requiring pay ranges on job postings promotes fair pay practices and holds organizations accountable.
If implemented thoughtfully and strategically by an organization, pay transparency can promote a better work environment where employees believe they are paid fairly. Providing salary ranges on job postings can also positively narrow the applicant pool and improve the hiring experience.
Absent salary range information, a job candidate could go through a multi-week interview process only to discover the job offer is far below their salary expectation. This wastes the candidate's time and causes financial and reputational damage to the employer.
The task of moving toward full pay transparency can be daunting for an organization.
1. Comply - Use Trusaic's Salary Range Finder to ensure fair and competitive pay at the time of hire
Salary Range Explainability: Salary Range Finder helps you establish and post competitive and equitable pay ranges to confidently comply with pay transparency laws.
2. Correct - Use PayParity and OpportunityParity to understand, explain and resolve pay disparities:
Trusaic's pay equity software alleviates the concern of moving to full transparency by identifying the root cause of pay disparities and remedying them. Additionally, it supports the creation of equitable, compliant job postings and enables a consistent approach to pay range disclosure.
This empowers your organization to execute compensation plans with complete confidence that pay equity is at the center.
OpportunityParity™, a feature of Trusaic's workplace equity analysis software, offers a complete solution for pinpointing and remedying equity concerns in your organization's hiring, promotion, and retention processes.
Drawing from diverse global directives like the OFCCP, EEOC, EU Pay Transparency Directive, and more, it ensures fairness and inclusivity throughout your talent lifecycle, irrespective of geographical boundaries or regulatory frameworks.
How OpportunityParity Supports Your Goals:
- Improves equitable career advancement: Build equity into every aspect of your talent management process, from recruitment to retention.
- Analyzes and improves opportunity equity: Identify and address disparities in hiring, promotion, performance assessment, and retention.
- Helps you achieve workplace equity objectives: Use forecasts to help achieve your diversity objectives and accelerate progress with data-driven insights.
- Builds a culture of trust and transparency: Elevate human capital, bolster people sustainability, and fortify social responsibility metrics by fostering an environment of trust and transparency.
Leveraging Trusaic's workplace equity software suite will help ensure you remain in compliance with Washington State's pay transparency law requirements.
Sign up for PayParity by October 31, 2024
and receive OpportunityParityTM at no additional cost
Sign up for PayParity by October 31, 2024 and receive OpportunityParityTM at no additional cost