Here Come the Pay Range Lawsuits

NEWSLETTER VOLUME 1.25

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October 26, 2023

Editor's Note

Here Come the Pay Range Lawsuits

 

Well, that didn't take long. Washington's pay transparency law went into effect January 1, 2023 and ten months later we have class action lawsuits filed for failure to post realistic pay ranges in job ads.

 

Ten months may seem like a long time, but in order to file suit, the employees have to show " the employer committed a pattern of violations as to the employee or committed a violation through application of a formal or informal employer policy or practice."

 

I am not sure how an employer is going to have a pattern of failures to post pay ranges as to a particular employee unless that employee applies for multiple positions with their employer, which doesn't seem likely in ten months. But if the employer is not posting any pay ranges, is posting overly broad ranges, like $50,000 to $200,000, or open-ended ranges, like 70,000 and up, it should not be that hard to show that it's an employer practice to disregard the law.

 

In Washington, employees can recover statutory damages of $5,000 each whether or not they suffer actual damages. If the class is approved that can add up. And employees can recover attorneys' fees as well.

 

So, the incentives to bring these lawsuits are there and it will be interesting to see how they play out. In the meantime, save yourself a lot of hassle, legal fees, and penalties and just post the pay.

 

- Heather Bussing

Employers Beware – Slew of Class Actions Filed Alleging Violations of Washington's Pay Transparency Requirements in Job Postings

by Meg BurnhamMissy MordyScott Prange, and Sheehan Sullivan

at Davis Wright Tremaine

Within the past week, roughly 30 class action lawsuits were filed against myriad employers alleging violations of Washington's new(ish) pay transparency law. This is a good time for employers to review their job postings, especially any job postings that are currently active, to ensure compliance. Employers with 15 or more employees are required to provide in all job postings a salary or wage range, a general description of all benefits, and any other compensation the employee will receive. The law is described in greater detail in this earlier advisory and this webinar.

The lawsuits are largely identical and assert claims that the employers' job postings do not include salary or wage ranges, benefits, and "other compensation" information. The plaintiffs seek to represent a putative class of all applicants who applied for any job at the employer, for which postings were allegedly insufficient. The plaintiffs seek damages, on behalf of themselves and the putative class, under two theories. First, they allege they "lost valuable time" applying for the position. Second, the plaintiffs claim that because they did not have the salary information for the job posting, they were unable to "evaluate the pay for the position, negotiate that pay, and compare that pay to other available positions in the marketplace." The plaintiffs seek $5,000 or actual damages, whatever is greater, and their attorney fees.

Employers with questions about the law are encouraged to contact legal counsel. In the meantime, DWT tracks all legal developments related to the law, including the new cases as they are filed, and will provide periodic updates.

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