This article was originally published in Equinox Business Law’s website on June 7, 2018 as “Updates to Washington’s Equal Pay Act Go Into Effect”.
On March 28, 2024, Governor Jay Inslee signed into law Substitute House Bill 1905, broadening the scope of Washington’s Equal Pay and Opportunities Act (EPOA). Since 1943, the EPOA prohibited sex- and gender-based pay discrimination. The new amendments extend beyond gender, now barring pay discrimination based on membership in any protected class.
Protected classes under the 2024 EPOA include age, sex, gender, marital status, race, national origin, sexual orientation, gender expression, gender identity, presence of a disability, and more. This is a major development for employers, as the law now requires that pay equity be ensured across a wide spectrum of protected classes. Additionally, employers with 15 or more employees must disclose the wage scale or salary range for each job posting, along with a general description of all benefits and other compensation offered to the applicant. This disclosure must be included in both electronic and hard-copy postings. Finally, employers must provide wage scale or salary range information to current employees upon request when they are offered a promotion or transfer.
These updates differ in several ways from the 2018 amendments. The 2018 amendments focused primarily on addressing income disparities and employer discrimination, and emphasized the need for equitable compensation, and aimed to eliminate practices that contributed to persistent earning inequalities. The 2024 updates build on these foundations by adding specific requirements for wage disclosure in job postings and enhancing protections against retaliation. The other aspects of the EPOA remain unchanged, and the amendments go into effect on July 1, 2025.
The June 7, 2018, amendment to Washington’s Equal Pay Act attempts to limit gender discrimination in the workplace by prohibiting discrimination in compensation of “similarly employed” workers of different genders.
Under the act, employees are “similarly employed” when:
- they work for the same company
- the job done requires similar skill, effort, and responsibility
- the jobs are performed under similar working conditions
Differences that are based on bona fide factors such as merit, training, education, and experience, among others are a defense to disparities in pay. However, the factor must be job related, consistent with business necessity, and account for the entire gap in pay.
An example to demonstrate what this mean: if the job in question is to clean offices, the company cannot say that a masters degree in chemistry accounted for the differential because a master’s degree is not needed to clean an office.
In addition, prior wage or salary history is not a bona fide factor or a defense to a claim of gender discrimination in compensation. Aside from prohibiting paying similarly employed people of different genders less, the amendment also prohibits limiting career opportunities or advancement because of someone’s gender. Finally, the amendment restricts an employer preventing employees from discussing wages or other compensation.
Employees may file a complaint with Labor & Industries or file a lawsuit if they believe the Equal Pay Act was violated. L&I has various tools at its disposal if it finds there was a violation of the law: awarding actual damages, statutory damages, recouping investigation costs, and interest.
Employers should proactively review existing policies and practices regarding compensation and advancement opportunities.
