Equinox Blog & Legal Updates

LEGAL UPDATE: How you recruit and post job listings has changed for 2023 

January 2, 2023

Washington State has recently amended its 2018 Equal Pay and Opportunities Act to include new amendments that improve pay transparency and provide more information to job applicants. 

As of January 1, 2023, Washington State employers with at least 15 employees are required to disclose the “wage scale or salary range” for each job posting to both employees and potential applicants applying for an open position. In fact, employers must provide this information at the “earliest possible point” in the hiring process.  Employers must also provide a general description of the benefits and any other compensation offered.  This change amends the prior law that required employers provide employees or applicants the “wage scale or salary range” for a position but allowed them to provide only a minimum salary if no “wage scale or salary range” exists.  It’s important to note that the requirements for internal positions only require this information to be provided upon request by the candidate. 

Practice Tip

Prior to January 1, 2023, Employers must ensure their external job postings include the “wage scale or salary range”, so it’s important to develop a wage scale or salary range and benefits for each position and have a plan to ensure your postings include this information especially if you use third parties to assist with your recruiting.   Employers should also consider a compensation audit to ensure current wages and posted salary ranges are in line and that pay transparency does not create discontent among the company’s current employees

EMPLOYER GUIDELINES FOR COMP: 

1. Job posts will need to include a minimum pay rate and maximum pay rate (either an hourly wage or yearly salary amount) 

a.       If multiple levels of jobs a pay scale for each needs to be included 

b.       Cannot leave wage/salary amounts open-ended ($29/hour and up) 

2. General description of all benefits 

a.     Health care 

b.     Retirement 

c.     Vacation (add amount. Example: 8 hours per month or 12 days per year) 

d.     PTO (add amount. Example: 8 hours per month or 12 days per year) 

e.     Discretionary bonuses 

f.      Stock options 

g.     Relocation assistance 

h.     Profit-sharing 

i.      Life insurance 

j.      Disability 

k.     Workers’ compensation 

l.      Paid holiday (Monetary value of benefits does not need to be included)

3. Other compensation offerings 

a.       Travel allowance 

b.       Parking 

c.        Childcare assistance 

d.       Paid sick leave 

– If you offer a more generous leave than what is required by WA state or local ordinance, include a number in the description 

e.       Student loan repayment 

f.         Paid training and development 

EXCEPTIONS: 

If your website fulfills the above requirements a link can be posted within the job description

EXAMPLE OF A JOB DESCRIPTION: 

“Employees (and their families) are covered by medical, dental, vision, and basic life insurance. Employees can enroll in our company’s 401k plan,  as well as a deferred compensation plan. Employees will also receive eight hours of vacation leave every month, as well as eight hours of Washington-paid sick leave every month.  Employees will also enjoy twelve paid holidays throughout the calendar year. Two weeks of paid parental leave will also be available for use after successful completion of one year of employment.” 

“Hired applicants will be able to purchase company stock, receive annual bonuses, and can participate in profit sharing. 

Hired applicant will also receive an equity grant in the form of either a direct grant of stock that will be specified in the employment contract or 

an option to purchase stock in the future for a specified price.” 

“The pay range for this position is $58,000-$63,000 per year.”

Are you ready? Contact us to review the implications for your business and make a plan

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