DC Law Protects Open Discussion of Pay Among Employees

Pay transparency builds trust, promotes productivity, advances pay equity

In the District of Columbia, employees are free to discuss their wages with other employees without fear of reprisal from their employers. On March 11, 2015, the District of Columbia’s Wage Transparency Act of 2014 (WTA) took effect providing that an employer may not prohibit an employee from inquiring about, disclosing, comparing, or otherwise discussing with other employees of the same employer the employee’s wages or the wages of another employee. The WTA also prohibits employers from retaliating against any employee that has disclosed or is believed to have disclosed wages. In addition, employers may not prohibit or attempt to prohibit an employee from lodging a complaint, testifying, or participating in an investigation related to a violation of the act.

Application

The WTA covers pay discussions among supervisory and non supervisory employees, but it does not authorize an employee with access to wage information as part of their job, such as human resources personnel, to discuss that information. Also, the WTA does authorize an employer to discuss with an employee the wages of another employee. Finally, the WTA does not create a private right of action, but it does establish civil penalties for employers who violate WTA’s provisions: a civil fine of $1,000 for the first violation; $5,000 for the second violation; and $20,000 for each subsequent violation.

Expanding Pay Transparency

The WTA is similar to other laws that expressly or impliedly protect the discussion of wages and working conditions among employees. For example, the Nation Labor Relations Act, which applies to most private sector employers, is consistently interpreted to prohibit employer policies that forbid non-supervisory employees from discussing their wages and working conditions. Similarly, Executive Order 13665 issued April 8, 2014 prohibits federal contractors from discriminating against employees or applicants who inquire about, discuss, or disclose their own compensation or the compensation of another employee or applicant. Eight states have equal pay laws that protect employees who discuss their wages with other workers. Washington state and Maryland are also considering legislation to protect wage disclosure and discussion.

Lack of pay transparency is thought to contribute to the persistent wage gap between genders. Pay transparency helps to expose those wage discrepancies and reinforces jurisdictional Equal Pay laws. Pay transparency also improves workplace efficiency, increases worker productivity, reduces turnover, builds trust with an employer, and empowers employees.