what’ s working
‘ a cottage industry’
Employers support pay transparency because it sets clear expectations for both employer and job seeker and helps attract talent, said Lindsey Hueer, AWB’ s employment law lead during the 2025 legislative session.
“ Employers want to post salary information because it increases trust among the potential employees and increases trust for the current workforce,” Hueer testified in support of the bill during a hearing in the Senate Labor & Commerce Committee.
A 2024 survey by the Society for Human Resource Management found that over two-thirds of HR professionals say their companies voluntarily disclose pay ranges, even when not required.
Despite efforts to comply with Washington’ s rule, hundreds of employers faced lawsuits under the law’ s private right of action, which lets job applicants sue over deficient postings – with each claim carrying a $ 5,000 penalty plus attorney fees.
A small number of law firms filed more than 250 class-action suits against Washington employers for allegedly failing to publish wage and salary ranges, with one Seattle law firm filing 75 % of the total suits.
“ The Legislature enacted the Equal Pay & Opportunities Act to protect Washington workers and to fight employer discrimination. It did not enact the EPOA to give bounty seekers an incentive to trawl the Internet for noncompliant job postings to obtain a statutory damages award unrelated to any personal harm.”
— Washington State Supreme Court Justice Sheryl Gordon McCloud
Rep. Mary Fosse, D-Everett, helped shepherd Senate Bill 5408 through the House.
“ A handful of plaintiffs’ firms decided to make a cottage industry out of the statuary damages because there was no threshold to prove somebody sustained actual damages,” Hueer said.“ You could just say‘ your job posting was deficient. I applied for your job. Therefore, give me my $ 5,000.’”
As of August 2024, total employer liability added up to roughly half a billion dollars. The pay transparency lawsuits illustrate the problem with a private right of action, which AWB has opposed in many other bills.
Many employers were also caught off guard by lawsuits stemming from job postings they had no control over. Job boards often scrape job listings and repost them without full wage data, making employers liable for postings they never reviewed or approved.
Other states with pay transparency laws don’ t hold employers liable for third-party postings.
a bipartisan fix
Recognizing the law’ s unintended consequences, legislators from both parties came together to pass SB 5048, which went into effect July 27.
“ The pay transparency bill was passed with good intention. Unfortunately, it’ s been misused by some,” said Sen.
Curtis King, R-Yakima, prime sponsor of SB 5408. Senate Bill 5408 makes three changes: 1. Judicial discretion: Judges can now consider the number and severity of violations before awarding damages. 2. Third-party postings: Employers are no longer liable for job ads posted without their knowledge by external websites.
24 association of washington business