This year, the District of Columbia has introduced significant new laws concerning the local minimum wage and pay transparency. These changes signal a big step forward for fair compensation and equity for D.C. workers. As an employer, it’s important to ensure that you are aware of these updates and implement them properly into your business operations.
The Expansion of D.C.’s Minimum Wage
Signed on January 10th, the new amendment on minimum wage extends coverage of the previously established law to include individuals working two or more hours a week in the District of Columbia.
Prior to this change, the minimum wage law primarily covered workers who spend over 50% of their working time in D.C. and those based in the city. Now, even folks who spend limited time in the area will be entitled to these protections and benefits for the hours they have worked within the district.
This law does not include employees who work across multiple states in the same week, as employers are only required to pay employees the minimum wage in each specific state they are conducting their work in.
Another key update that will come into effect on July 1, 2024 is an hourly rate increase to $17.50 per hour (a 50 cent increase) for non-tipped employees and $10.00 per hour (a $2 increase) for tipped employees.
Pay Transparency Laws
Earlier this year, the Wage Transparency Omnibus Amendment Act was signed in D.C. law. The act mandates increased transparency in hiring practices and offers greater protections for employees.
Set to take effect on June 30, 2024, businesses with at least one employee in D.C. will be required to display pay ranges and prospective benefits information within their job postings.
The new regulation does leave room for interpretation, as it is not yet clear whether the act covers jobs outside of D.C., including remote positions; a caveat that I believe will soon be addressed along with other clarifications.
In a step toward promoting equity in hiring, the law also prohibits employers from requiring applicants to disclose their wage history to avoid decision making based on their past income.
Employers will be required to post a notice highlighting the act in their workplace to inform workers of their new protections.
If you have any questions about these changes or would like assistance in reviewing and updating your policies to ensure compliance, please contact me at edgar@officiumdc.com or schedule a time to talk here.