Washington lawmakers passed a bill earlier this year with similar provisions for state employers as those faced in California
Mark Harmsworth
Washington Policy Center
California Senate Bill 1162 (SB 1162), recently signed into law by Governor Gavin Newsome, could potentially have some unintended consequences for Washington State employers.
SB 1162, among many things, requires employers who have 15 or more employees to post salary ranges on job advertisements or be subject to some hefty fines from the California Civil Rights Department (CRD). The fines can be as high as $10,000 per violation for an employer that fails to add salary ranges to job advertisements.
In Washington State, Senate Bill 5761 (SB 5761) passed earlier this year with similar provisions for Washington employers.
However, SB 1162 is vague in its application and definitions of the definition of employers and employees. This could have a chilling effect on all employers that don’t have a physical presence in California, being subject to the California law because they have employees physically based in California. Additionally, the law is not clear if job applicants from California have the same potential claims against Washington employers, advertising jobs in Washington, that they apply for.
Similar to the California Consumer Privacy Act (CCPA), which can apply to out of state companies, SB 1162 could be similarly applied. A resident from California could file a claim against an out of state employer for not including a salary range on a job advertised on one of the popular national job sites.
If an applicant is successful applying for a Washington based job, while living in California that did not have salary ranges on the job advertisement, there is potential for a lawsuit after the fact. SB 1162 allows a lawsuit to be filed up to a year after the original job posting.
An employer is considered covered by SB 1162 if they have an employee (even working remotely) in California.
For opportunistic litigators, this opens the door to frivolous lawsuits against out of state employers who fail to post salary ranges on job advertisements. Another unanswered question is whether an employer can explicitly exclude California job applicants to avoid the potential litigation risk. That is an issue that likely will be decided by the courts.
SB 1162 is poorly written legislation and could have potential legal ramifications for Washington employers, costing jobs and increasing costs for products and services.
Mark Harmsworth is the director of the Small Business Center at the Washington Policy Center.
Also read:
- Opinion: In search of joy at Vancouver Mall during Christmas time
Paul Valencia reflects on his annual Christmas-time visit to Vancouver Mall, finding nostalgia, people-watching, and moments of joy amid last-minute holiday shopping. - Opinion: Atmospheric River events mean even less clearance for vessels crossing under the proposed Interstate Bridge Plan
Neighbors for a Better Crossing argues that high river levels from atmospheric river events further reduce vessel clearance under the proposed Interstate Bridge design, creating long-term navigation risks on the Columbia River. - Opinion: Why I won’t mourn the end of enhanced ACA subsidies
Elizabeth New (Hovde) argues that allowing enhanced ACA subsidies to expire forces a necessary conversation about rising health care costs rather than continued cost shifting to taxpayers. - Letter: Worried about a replacement bridge?
Sharon Nasset raises concerns about congestion, bridge capacity, and unanswered questions surrounding inspections and decisions tied to the I-5 bridge replacement effort. - Opinion: IBR promotes ‘giving away’ historic interstate bridges while withholding cost estimate for replacement
Neighbors for a Better Crossing argues the IBR program is promoting demolition of the historic Interstate Bridges without releasing updated cost estimates or current seismic data to justify replacement.
