Hi there. If you are an employer and your business employs people within the DMV area—that's DC, Maryland, and Virginia, the tri-state area in which I practice—or if you hire people who work remotely or in a hybrid arrangement and live in those states, there is some important news you need to know.

Virginia is now the third jurisdiction, after Maryland and DC, to enact a wage transparency law. So, what does this mean for employers? I'm Katherine Taylor, the lawyer for business owners, and I'm going to explain what these laws mean for you. Wage transparency laws are going into effect throughout the country. At this time, approximately 18 states, including DC, have enacted these laws. Basically, they regulate job listings, job postings, and advertisements that employers publish to find employees to fill positions.

So, what can and can't be done under these wage transparency laws? First, an employer cannot ask an applicant for their wage or salary history, either on an application or during an interview. This is something that has traditionally been asked on applications, but it is no longer permitted in jurisdictions with these laws. Secondly, the employer or prospective employer is required to publish the pay range for the specific position being advertised. If the pay range is not included in the job posting, the information generally must be provided to a prospective applicant if they ask.

In addition, the employer has to describe the benefits and other compensation that go along with the position. Most importantly, employers need to make sure that their job advertisements, applications, and interview processes all comply with the applicable wage transparency requirements. Interviewers also need to understand what they are required—and prohibited—from discussing with prospective employees. And these requirements can apply to both external and internal job openings. What this does is give prospective and current employees more information and, ultimately, more power to negotiate for the position and compensation that are right for them. 

Here is another thing to be particularly mindful of when it comes to enforcement. Virginia is the newest of these three jurisdictions to put its wage transparency law into effect. Under Virginia law, a prospective or current employee may be able to file a lawsuit against an employer for a violation, subject to the applicable requirements and time limits. In Maryland, a prospective or current employee generally files a complaint with the Labor Commissioner rather than bringing a private lawsuit. And in DC, there is no private right of action under the wage transparency law. Enforcement is handled by the appropriate government authorities.

So, if you are a Maryland or DC employer, even if you think you are not subject to Virginia law, you may be if you have a prospective or current employee who lives and works in Virginia, whether they work remotely full-time or part-time.

If you have any questions, please feel free to give us a call. This can get complicated when you are dealing with the laws of three different jurisdictions—particularly when Maryland, Virginia, and DC are so close together and so many people commute to and from these jurisdictions or work remotely.