New Employment Laws in Washington DC: What HR Pros Need to Know

Washington DC is the nation’s capital and the seat of the federal government, so it’s no surprise that 737,000 people, nearly three-quarters of a million, federal employees work in the wider region. But there are many other employers and industries in the capital, making it a diverse place to live and work.

The District has made major strides in recent years with its efforts to protect and serve all employees within its borders, whatever industry they work in. Employers in DC need to stay aware and up to date with all the recent changes, so we’ve gathered the most important updates and new laws for 2024 for you right here.

At BambooHR, we know how hard it can be to keep up with fast-changing labor laws. Our easy-to-use HR software helps you manage these updates, keeping your business running smoothly and helping your employees feel valued. Find out how BambooHR can simplify compliance and set your people free to do great work by scheduling a free demo.

Washington DC labor statistics

• 767,400 employed people with a 5.2% unemployment rate
• Key industries include the federal government, tourism, aviation, aerospace, and education
• $174 billion GDP in 2023
• Median household income $101,027
• 62.6% of population over age 25 with at least a bachelor’s degree
• 14.1% of the population is foreign-born, slightly lower than the US overall at 14.3%

5 Washington DC labor laws employers need to know

Non-compete laws:

Beginning in 2022, Washington DC banned employers from requiring employees to sign non-compete agreements if they make less than $150,000 per year (or under $250,000 for medical professionals).

Enforcement has stepped up in 2024, so employers need to be aware and be compliant with this law—it’s faced several delays in implementation but is now in full force. Employers can be fined tens of thousands of dollars if they’re found to be in violation.

Paid sick leave:

A 2024 update to Washington DC’s paid sick leave requirements is now in place, and employers have varying requirements for the minimum amount of paid sick leave they’re required to grant employees depending on company size:

• Employers with 100 or more employees: one hour of paid sick leave for every 37 hours worked, for up to seven days per year
• Employers with 25-99 employees: one hour of paid sick leave for every 43 hours worked, for up to five days per year
• Employers with 24 or fewer employees: one hour of paid sick leave for every 87 hours worked, for up to three days per year

Tipped employees, regardless of the size of their employer, accrue one hour of paid sick leave for every 43 hours worked (up to five days per year).

Paid sick leave can be used for an employee’s medical care or illness, or to care for a child, parent, spouse, domestic partner, or any other family member who is ill or needs medical care.

For employers, it’s critical to stay on top of not only the legal requirements but also workforce planning to make sure your business can run smoothly when employees are taking sick or family leave as well.

Family and Medical Leave (FMLA):

Washington DC has some of the most generous paid family and medical leave requirements in the US, which is great news for employees. The DC Family and Medical Leave Act (DCFMLA) provides:

• 12 paid weeks to bond with a new child
• 12 paid weeks to care for a family member with a serious illness
• 12 paid weeks to care for their serious illness
• 2 paid weeks to receive prenatal care

Employees are eligible for 16 weeks of paid leave within a 24-month period, and they must have worked for their employer for at least one year or 1000 hours to be eligible. Employers with more than 20 employees are covered by the DCFMLA.

Covered employers must provide notices to employees about their rights to paid leave. (There is a new 2024 Notice to Employees that must be posted and a copy provided to all eligible employees). It’s illegal to discriminate against employees for exercising their benefits in the program as well.

And now, even self-employed people are eligible to join the Universal Paid Leave Fund by making contributions (once they opt out, however, re-enrollment is restricted).

These enhancements help you support your people through some of life’s most exciting and challenging moments, so make sure that your policies are up-to-date and fully communicated to all eligible employees.

Minimum wage:

The minimum wage in Washington DC rose to $17.50 per hour on July 1, 2024 (up from $17/hour). This new minimum applies to all employers regardless of their size.

And the base minimum for tipped workers also went up, from $8 to $10 per hour. In fact, the tipped minimum wage is set to be phased out completely as of 2027, when its scheduled rises will catch it up to the regular minimum wage.

Each year, the minimum wage is set to increase in accordance with the increase in the Consumer Price Index to ensure employees’ pay keeps up with the cost of living. Employers should be sure to factor these regular increases into their compensation structures and planning.

Pay transparency:

Washington DC’s new salary transparency law just came into effect on June 30, 2024. It’s an update to the 2014 salary transparency law, and it outlines several requirements for employers with more than one employee in the district:

• Disclosure of pay ranges (both projected minimum and maximum salary or hourly pay) in job listings and advertisements
• Disclosure of health care benefits before conducting interviews
• These requirements also include internal transfers and promotion

Also, the updated law includes several provisions designed to strengthen protections for employees to prevent discrimination against them based on their salary history. Employers are not allowed to request or require previous salary information from applicants or their previous employers, and they’re also not allowed to screen candidates based on a previous minimum or maximum salary requirement.

Finally, the update strengthens the protection employees have when discussing their compensation with their fellow workers: compensation is now defined to include all forms of monetary and non-monetary compensation, including benefits and perks.

Failure to comply with these requirements can incur a hefty monetary penalty, so employers need to stay up-to-date and compliant.