On Nov. 30, the Seattle Metro Chamber hosted Lindsey Sosa and Gary Kawamura from Archbright to learn more about the new pay transparency rules for salary ranges and benefits descriptions on job postings that start Jan. 1, 2023.
Watch the full webinar on demand at any time here.
Or read a Q&A of the information presented below.
Learn more about the Equal Pay and Opportunities Act here.
Quick Summary
Washington state amended its Equal Pay and Opportunities Act to require employers to include wage and benefit information in all job postings starting Jan. 1, 2023. This replaces the prior requirement that employers provide this information to applicants “upon request” after receiving a job offer.
Q: Who must comply with the new law?
A: Any Washington state employer with 15 or more employees. Recent guidance clarifies the 15-employee threshold includes employers that do not have a physical presence in Washington, if the employer has one or more Washington-based employees.
Q: How are 15 employees counted?
A: All full-time and part-time employees are counted. The number of employees includes employees who do not have a physical presence in Washington if the employer has one or more Washington-based employees.
Q: What if I’m a Washington-based employer recruiting for an out-of-state candidate?
A: You must include the salary range and benefits description if the remote position could be filled by a Washington-based worker. Stating in a posting that the employer will not accept Washington applicants does not excuse compliance with this law. No need to comply with this requirement if the physical worksite is located in another state.
Q: What is a job posting?
A: Any advertisement, website posting, or social media post intended to recruit for a specific position and includes qualifications. A sign, ad or social media post that simply says “Help Wanted: Servers” or “Now Hiring: Manufacturers” does not need to include the ranges or description because they are not advertising for specific positions and do not include the desired qualifications.
Internal job postings do not require the salary range and benefits description, but the employer must provide that information to an employee who is offered an internal transfer or promotion upon request. Staffing and temp agencies must also post the wage scale or salary range and benefits description – it is the employer’s responsibility to ensure staffing and temp companies comply.
Q: What needs to be on the job posting?
A: Each job posting must include the wage scale or salary range and a general description of all the benefits and other compensation for a specific available position to be offered to the hired applicant. The pay information and description of benefits must be on every external job posting.
Q: What is the difference between wage scale and salary range?
A: Wage scale is the hourly rate for an overtime-eligible employee. Salary range is the annual wage for an overtime-exempt employee.
Q: How should I write my wage scale or salary range on my posting?
A: Write what the position is reasonably and genuinely expected to earn, from the lowest possible amount to the highest possible amount. This looks like: Salary is $75,200-$112,800 per year.
Not acceptable:
- $25/hour+
- Up to $75,000 per year
Q: How should I determine my salary range or wage scale?
A: Sosa recommends:
- Use salary data and research to identify a midpoint salary that is comparable to other companies of your size in your sector or industry.
- Determine wage spread – 30%-40% is common. We’ll use 40% for this exercise.
- Calculate 40% between the minimum and maximum for the range.
Example:
- The midpoint salary is $94,000.
- Wage spread is 40%.
- The minimum and maximum will be: $75,200-$112,800.
So, your job posting will include a salary range of $75,200-$112,800 to comply with the law.
Q: Can I post a starting salary range for a role?
A: You can post a starting range or hiring range for an introductory or training period for a position, but you must also include on the same posting the entire wage scale after that period is over.
Q: I need a welder but I am open to hiring one with two years experience, and up to five years experience. Can I post wages are DOE?
A: You will need to post wage scales for each potential position that the candidate may fill, representing each level of experience on the job posting.
Q: How do I put tips on a posting?
A: Tips would be included as other compensation. An exact amount (or even an approximation) of tips is not required. You can simply list that tips are included, for example: $25-$35 per hour, plus tips.
Q: Do I include sales commissions?
A: You need to include the rate or rate range, percentage, etc. of all sales commissions. For example: $75,200-$112,800 per year plus 5%-8% of net sale price per unit.
Q: How detailed do the benefit descriptions need to be?
A: Provide your most reasonable and genuinely expected benefits for the job, including:
- Medical
- Dental
- Vision
- Disability
- 401(k) or other retirement plans
- Paid time off benefits above what is legally mandated – paid holidays, paid vacation, a more generous sick leave allotment, or paid parental leave
- Health savings accounts (if the employer contributes to the account)
Examples:
Benefits include medical insurance for you and your family, three weeks of paid time off per year and a 401(k) plan.
Employers will not likely need to list:
- Snacks in the breakroom
- Office equipment
- Non-cash employee gifts
- Athletic facility use
- Parties/picnics
Q: I have all benefits listed on my website – can I just link to that in the job posting?
A: No – a link alone will not comply. Write out the description of benefits on the posting.
Q: Do the new rules apply to job postings that were advertised before Jan. 1?
A: Yes. If you have a current opening advertised and it is still posted after Jan. 1, you will need to update the posting to add the salary range or wage scale and the description of benefits.
Q: How might this impact my recruitment process?
A: Posting salary ranges may save you time and effort in the recruiting process, Sosa said. Candidates with pay requirements that are higher than what an employer will pay will not likely enter the application process.
Q: Can a candidate negotiate a wage or salary above the posted range for the position?
A: Yes. Make sure you document the legal reason for giving the candidate a salary or wage higher than what was posted. Acceptable factors for differences in pay include:
- Differences in education, training, or experience
- Seniority
- Merit/work performance
- Measuring earnings by quantity or quality of production
- Regional differences in compensation
- Differences in local minimum wages
- Job related factors consistent with business need
Employers bear the burden of proof to justify a legal reason for pay differences, so document the reason and save it in an accessible location. An employee’s previous wage or salary history cannot be used to justify pay differences.
Q: Can current employees request a pay scale for a position?
A: Employers do not need to provide compensation amounts to employees who are not offered a position. The employee must be considered an applicant to receive that information.
Q: Can employees in payroll or HR disclose the pay of any employee?
A: Employers cannot prohibit employees from disclosing, comparing, or discussing their wages or the wages of other employees. Wage non-disclosure agreements for employees are prohibited.
Employees in payroll, HR, or others who have access to employees’ wage information can be required to keep that information confidential. However, HR or payroll employees can share their personal pay.