FranklyHR_blog_Header (1)

 

Washington D.C. Updates

Direct Cash Wage Tipped Employee Increase Repealed
The increase that had been originally set for July 1, 2025 and paused to October 1, 2025 has been repealed.

Previous Updates

Direct Cash Wage Tipped Employee Increase

Effective October 1, 2025, the DC minimum direct cash wage for tipped employees increases from $10.00 per hour to $12.00 per hour. As a result, the maximum tip credit decreases from $7.95 per hour to $5.95 per hour.

The increase, originally set for July 1, 2025, was paused until October 1, 2025.
Pay Transparency Act Update

An advisory came through the Office of Attorney General’s Workers’ Rights and Antifraud Section, aiming to ensure that both employers and employees fully understand their legal rights and duties under the Act.
 
  • All job postings in the DC must include the minimum and maximum salary or hourly wage for the position, regardless of where the posting appears (online, print, etc.)
  • Employers must inform job candidates about available healthcare benefits before the first interview
  • Employers cannot seek or rely on a candidate’s prior wage history during hiring decisions
  • Employees are protected from retaliation or discrimination for inquiring about, disclosing, comparing, or discussing their compensation with coworkers
  • Employers may not block or retaliate against an employee for filing a complaint under the Act or for participating in protected activities.
  • A visible notice informing employees of their rights under the Wage Transparency Act must be posted in the workplace---a example template has not been released yet by this office. Employers can create their own to include: A clear statement that employees have the right to discuss their compensation (including salary and benefits) freely, wage-history inquiries are prohibited, and the requirement to disclose salary ranges and existence of healthcare benefits in job postings - the Jackson Lewis law firm has a sample that can be used until one is released: DC Wage Transparency Law Sample Notice.pdf
 
Employers must comply immediately and periodically check for a sample notice release here: Attorney General Schwalb Issues Business Advisory on Wage Transparency Requirements
 
Tipped Minimum Wage 

The D.C. Council voted to postpone the scheduled increase in the tipped minimum wage—from $10 to $12 per hour—that was originally set to take effect on July 1. The 90-day delay provides time to consider repealing Initiative 82, a voter-approved measure that aims to phase out the tip credit and align the tipped wage with the standard minimum wage by 2027. If the initiative is not overturned, the tipped wage will increase to $12 per hour and will take effect on October 1, 2025.
 
The tip credit will still rise to $7.95 on July 1, 2025.
Paid Family Leave 

The DC Paid Family Leave (PFL) tax rate will remain 0.75% until 12/31/2025.
 

Employer Information » DOES Office of Paid Family Leave

 



Parking Cashout Law Reporting 

 

To continue to improve air quality and traffic congestion in the District, the Transportation Benefits Equity Amendment Act of 2020, also referred to as the DC Parking Cashout Law, was signed into law by Mayor Bowser in April 2020. This law encourages sustainable transportation use and aims to reduce the number of commuters driving alone to work in the District.
 
The Basics
 
Who Is Required to Comply?
 
DC employers with 20 or more covered employees that offer free or subsidized parking to their employees must comply with the law.
 
*Note that even if you are not required to comply, you may still be required to report – see Who Has to Report?
 
District employers with 20 or more covered employees must submit a report to DDOT by January 15, 2025, detailing how they are complying or if an exemption applies, regardless of whether they offer a parking benefit.
 
Who Is Exempt?
 
  • Businesses that owned (and continue to own) their parking before October 1, 2020
  • Businesses that are under a current parking lease that began before October 1, 2020, are exempt until the lease terms are up (regardless of possible extensions)
  • Hospitals and universities with pre-existing Campus Plans (with two key exceptions: if hospitals or universities build outside of an existing campus plan, such construction will have to comply with the law. Additionally, upon the expiration of their campus plan, universities and hospitals will have to implement compliance measures).
  • Businesses that do not offer free or reduced parking to their employees.
 
A covered employee is a part-time or full-time employee who works in a District of Columbia office or those on a hybrid schedule where at least 50% of their working time is in the District of Columbia. The District Department of Transportation (DDOT) has provided clarification that those who telework over 50% of the time (outside of the District) are not considered covered employees.
 
 
 
 
Sexual Harassment Training 

Effective October 1, 2024, managers have the option to attend the District of Columbia's required sexual harassment training online. Previously, managers had to attend training in person. You can check out last month’s FranklyHR Article on this topic below:
 

Sexual Harassment Policy and Training Requirements (frankcrum.com)



 
Paid Family Leave 

D.C. passed an emergency amendment increasing employer contributions to their paid leave program. D.C employers are now required to contribute .75% of the gross wages paid to each employee quarterly, while employee contributions are not required. This is effective through October 13, 2024. A second update is under review by Congress and would extend the duration of .75%.
 
 
The permanent version of the budget bill can be tracked here - B25-0784 - Fiscal Year 2025 Budget Support Act of 2024 (dccouncil.gov)
 
D.C. will update the required notice for employers. Employers can learn more about paid family leave here.



 
Minimum Wage 

 

Effective July 1, 2024, the District of Columbia minimum wage increases from $17.00 per hour to $17.50 per hour under an annual inflation adjustment based on the change in the Consumer Price Index for All Urban Consumers in the Washington Metropolitan Statistical Area during the 2023 calendar year, rounded to the nearest five cents.
 
The minimum direct cash wage for tipped employees increases from $8.00 to $10.00. The maximum tip credit decreases from $9.00 to $7.50.
 
 
Pay Transparency
 
Effective June 30, 2024, an employer with at least one employee in the District of Columbia (DC) (except for the DC and federal governments) must include a minimum and maximum projected salary or hourly pay rate in all job postings under the Wage Transparency Omnibus Amendment Act of 2023 (the Act). The Act also restricts inquiries into a prospective employee's salary history and requires employers to display a notice in the workplace that informs employees of their rights under the Act (the notice is to be released by the DC Office of Human Rights).
 
 
Tipped Wage Workers
 
As noted in a recent FrankCrum News Alert, the Tipped Wage Workers Fairness Amendment Act of 2018 - (“the Act”), requires employers in the District of Columbia who hire at least 1 employee earning tips as wages to provide sexual harassment training to all employees, managers, owners, or operators of that organization. The anti-sexual harassment training course must include how to respond to, intervene in, and prevent sexual harassment by co-workers, management, and patrons. Training must be conducted using a DC Office of Human Rights (OHR) certified trainer.
 
Employers must have a sexual harassment policy outlining how employees can report instances of sexual harassment to management and to OHR, distribute and post the policy in a conspicuous place accessible to all employees, and file the sexual harassment policy with OHR.
 
Employers must also annually submit (1) the total number of instances of sexual harassment reported to management and (2) the number of reported harassers who were non-managerial employees, managerial employees, owners, or operators. For calendar year 2023, employers shall submit this information by May 31, 2024.
 
Employers can submit these documents and information through OHR’s Tipped Wage Documents and Certifications Online Form available at [DC GOVERNMENT] OHR - Business Self Service Form
 
Here are helpful FAQs regarding the Act: TWWF Compliance and Training FAQ
 
The DCOHR recently released additional guidance to clarify the legislation in advance of the upcoming May 31st deadline.
 
  • Any business that has moved away from the tip credit and now pays its employees the D.C. minimum hourly wage (currently $17.00 an hour) is no longer covered by the Act and, therefore, is not required to provide the training and submit sexual harassment policy and reporting information online. However, a business is encouraged to continue to do so as a best practice.
  • The Business Self-Service Form’s reference to the “total number of employees and managers” seeks the total number of people who worked in the business in 2023, regardless of whether they were employed for the entire year or as of December 31, 2023.
  • Employers may verify a new hire’s prior training and compliance with the Act by emailing DCOHR at tipsdc@dc.gov.
  • Once a business submits its form, it receives an automated email acknowledging receipt and a code to access the system. Within two weeks, the business will receive a message that the submission was either approved or denied or that corrections are needed. If a business has not received anything after 30 days, it should send DCOHR an email at tipsdc@dc.gov.
 
Voting Leave Poster

 

The District of Columbia revised its employee voting leave poster to reflect relevant dates for the June 4, 2024 primary election. You can obtain the poster here.
 
Employee Coverage Under Minimum Wage Law

 

Effective following a 30-day period of congressional review and publication in the DC Register (which is expected to be March 7, 2024), the District of Columbia amends its minimum wage law to clarify that an employee must be paid the minimum wage for each hour worked in the District when the employee performs at least two hours of work in the District, for the same employer, within one workweek.
 
Paid Family Leave Notice

 

As a reminder, DC employers must post PFL notice by February 1, 2024. The notice must also be provided to existing employees annually (you can send an email to them with the notice) by this date. Notice must also be provided within 30 days of hire and whenever employers are aware leave may be needed.
 
The updated notice and additional resources can be found here: https://dcpaidfamilyleave.dc.gov/
 
PFL Tax Rate

The PFL tax rate will remain at 0.26% of wages employers pay to employees for Q1 and Q2 of 2024. Q3 and Q4 not available at this time.
 
The model notice announced an increased maximum weekly benefit amount of $1,118.  The new employee notice can be found here: OPFL_Employee_Notice_2024.pdf. Notice must be posted in a common area, within 30 days of hire, sent electronically to remote employees, and whenever employers are aware leave may be needed by February 1, 2024.
 
Tipped Wage Workers Fairness Amendment Act

The Tipped Wage Workers Fairness Amendment Act   (TWWF) requires District employers who hire individuals earning tips as wages to inform their employees about their rights and benefits.
Employers must provide anti-sexual harassment training for tipped employees, managers, owners, and operations every two years, and new employees must complete the training within 90 days of hire unless the employee received the training in the last two years. The training must include how to respond to, intervene in, and prevent sexual harassment by co-workers, management, and patrons. The deadline to complete this training is August 31, 2023.
 
In addition to training, there are reporting and policy obligations under the Act. Click the link at the top of the article and see the FAQ below to learn more:

 

Compliance and Training FAQ

Human Rights Act Amended

The D.C. Council has amended the Human Rights Act (“DCHRA”), D.C.’s anti-discrimination law:
  • (1) “individuals working or seeking work as an independent contractor,” are now protected under the law;
  • (2)  “homeless status,” is a new protected characteristic and; 
  • (3)  harassing conduct is no longer required to be “severe or pervasive,” but rather may depend on the “totality of the circumstances.”  The law provides that “no specific number of incidents or specific level of egregiousness is required.”  
Click here for the required EEO posting and here to view other postings provided by the D.C. Office of Human Rights.
Tipped Wage Workers Fairness Amendment Act

Employers with tipped workers must use the portal to report to DC’s Office of Human Rights, on a yearly basis. The report must indicate whether an alleged harasser was a coworker, manager, owner, operator or customer. For calendar year 2022, the deadline for submitting a copy of the sexual harassment policy and complete certifications is March 31, 2023.

Learn more about the Tipped Wage Workers Fairness Act here.

Also, last November DC voters passed Initiative 82 which will gradually phase out the tip credit by 2027. The first two changes start this year. As of May 1st the maximum tip credit will be $10.10 and on July 1st the maximum tip credit will be $8.10.
Non-Compete Agreements 

The District of Columbia's law banning non-compete agreements applies to employers as of October 1, 2022. Previously, the law was projected to become applicable to employers on the date of inclusion of its fiscal effect in an approved budget and financial plan.
 
This applies to employees who either spend at least 50% of their work time for the employer working in D.C. or spend a substantial amount of work time in D.C and not more than 50% of their work time for that employer in another jurisdiction. It exempts “highly compensated employees” receiving at least $150,000 per year.
 
Employers are allowed to have policies that prohibit or restrict employee use of employer confidential information, and policies that prohibit “moonlighting” with another employer if there will be a conflict. An employer must provide such a policy to the employee within 30 days after October 1, 2022, within 30 days of an employee’s first day of employment, and after the employer makes a change to the policy.
 
There are additional restrictions and exemptions for non-compete agreements. Employers would be wise to work with legal counsel on crafting or updating any non-compete agreement.
 
Paid Family Leave Amendments

As part of the Fiscal Year 2023 Budget Support Act of 2022, the District of Columbia Council has voted to amend the DC Universal Paid Leave Act (UPLA).

 

For UPLA claims filed on or after October 1, 2022, employees may take up to 12 weeks each of parental leave (up from six), family leave (up from six) and medical leave (up from eight), and up to two weeks of prenatal leave (prenatal leave was set to end by October 1, 2022), within a 52-workweek-period.

Paid Family Leave Waiting Period 

The one-week waiting period before an employee can collect paid family and medical leave benefits does not apply to claims filed on or after July 25, 2022. You can learn more here.

 
Ban on Non-Compete Agreements

The District of Columbia’s law banning non-compete agreements has been delayed to October 1, 2022. The law prohibits employers from requesting or requiring an employee to agree to a non-compete agreement or policy, with exceptions.

 

Increase in Paid Leave

Due to a surplus in the leave fund, the number of weeks of paid leave available to D.C. workers under D.C.’s Universal Paid Leave Act (UPLA) will significantly increase on July 1, 2022.

 

Currently, the law provides for a maximum of:

 

  • 8 workweeks of parental leave;
  • 6 workweeks of family leave;
  • 6 workweeks of medical leave; and
  • 2 workweeks of pre-natal leave.

Starting on July 1, these maximums will increase to:

 

  • 12 workweeks of parental leave;
  • 12 workweeks of family leave;
  • 12 workweeks of medical leave; and
  • 2 workweeks of pre-natal leave.

There will be an overall cap of 12 weeks of UPLA leave available to each eligible D.C. employee per year and the employer payroll tax used to fund this leave is being decreased from 0.62% to 0.26% as of July 1, 2022.

 

Learn more about this paid leave here.

 

Voting Leave

D.C. has updated its Voting Leave Poster for the primary on June 21, 2022. 

Ban on Non-Compete Agreements

The District of Columbia's law banning non-compete agreements applies to employers as of April 1, 2022. Previously, the law was projected to become applicable to employers on the date of inclusion of its fiscal effect in an approved budget and financial plan.

 

The law prohibits employers operating in the District of Columbia from requesting or requiring an employee who works there to agree to a noncompete agreement or policy, with specific exceptions.

 

 

Updated COVID-19 Leave Poster and Guidance

The District of Columbia has released an updated poster on Covid-19 leave available under the DC Family and Medical Leave Act, and employers with 20 or more employees in Washington, DC, are required to display the poster in a conspicuous area in the workplace. They also are encouraged to post it electronically, such as on the intranet or in a shared folder, for their remote employees.

 

Updated guidance has also been issued. Click here for the poster and here for the updated guidance.

 

 

Paid Family Leave

The Paid Family Leave (PFL) Employee Notice has been updated. Employers are required to post the updated notice at their worksite on or before February 1, 2022. Please post and maintain the notice at each of your worksites in a conspicuous place. Additionally, please send the notice to your remote employees for their individual worksites.

 

In addition to posting the notice, employers are required to provide the paid family leave notice to employees at the following times:

 

  • To an individual employee within thirty (30) days of the employee's hiring;

 

  • Annually to all employees; and 

 

  • To an individual employee at the time you receive direct notice from that employee that leave for a qualifying event is needed.

 

The PFL Employee Notice can be downloaded here.

 

 

Leave for Employees

The Mayor has signed legislation requiring leave for vaccinations & boosters for employees, as well as leave for employees to have their child vaccinated. An employer must offer paid leave to any employee who commenced work for the employer at least 15 days before the request for leave. 

Employers are to provide up to four hours of paid leave (two hours per dose) for employees who are receiving the COVID-19 vaccination or are accompanying their children to receive the COVID-19 vaccination. Employers also must provide up to eight hours of paid leave per injection during the 24-hour period following the two-hour vaccination leave period for employees experiencing side effects or whose child is experiencing side effects and requires care. However, employers are not required to provide more than 48 hours of leave in total in a year starting on the effective date of the Act.

 

COVID Vaccination Leave Emergency Amendment Act of 2021:

https://lims.dccouncil.us/downloads/LIMS/47928/Signed_Act/B24-0404-Signed_Act.pdf

 

In addition, the Public Health Emergency Leave has been extended to February 16, 2022:

  • All D.C. employers must provide employees who have been employed for at least 30 days with up to 16 weeks of unpaid job-protected leave if the employee is unable to work due to specified reasons due to COVID-19. For a refresher click below:

https://ohr.dc.gov/page/updated-covid-19-leave-under-dcfmla

 

  • D.C. employers with between 50 and 499 employees must also continue to provide up to 80 hours of paid sick leave to employees employed for at least 15 days. For a refresher click below:

https://code.dccouncil.us/us/dc/council/code/sections/32-531.02a.html

 

 

Ban on Non-Compete Agreements

Following on from the June FranklyHR update, the District of Columbia's law banning noncompete agreements applies to employers as of April 1, 2022. Previously, the law was projected to become applicable to employers on the date of inclusion of its fiscal effect in an approved budget and financial plan.

 

The law prohibits employers operating in the District of Columbia from requesting or requiring an employee who works there to agree to a noncompete agreement or policy, with specific exceptions.

 
DC Leave Amendments

Beginning October 1, 2021, the definition of an employee under the District of Columbia Family and Medical Leave Act (DC FMLA) is amended to cover:

 

  • An individual who has:
    • Been employed by the same employer for at least 12 consecutive or nonconsecutive months (previously, the law required the employee to work for the same employer for one year without a break in service), and;
    • Worked at least 1,000 hours for the employer during the 12-month period preceding the date on which the period of family or medical leave is to begin (previously, the law specified the 12-month period immediately preceding the request for leave).
  • For COVID-19 reasons, an employee who was employed by the employer for at least 30 days prior to the leave request.

 

Amendments to the Universal Paid Leave Amendment Act which apply beginning October 1, 2021, include the following:

 

  • Medical leave may be taken for stillbirths and miscarriages.
  • Employees may receive up to six workweeks of qualifying medical leave (up from two weeks) for claims filed between October 1, 2021, and October 1, 2022.
  • Employees may take prenatal leave prior to childbirth (e.g., for prenatal check-ups, ultrasounds, physical therapy, bedrest) only between October 1, 2021, and October 1, 2022. The two weeks of prenatal leave is in addition to the eight weeks of leave for other reasons.
  • For claims filed after October 1, 2021, and before the 365th day after the end of the COVID-19 public health emergency:
    • Average weekly wage is defined differently, and
    • The one-week waiting period to receive benefits does not apply.

 

Also beginning October 1, 2021, the one-year statute of limitations for filing a civil action is tolled while a DC FMLA claim is pending administrative review.

 

Note: These amendments are made under the Fiscal Year 2022 Budget Support Temporary Amendment Act, which is effective until November 21, 2021. It is not yet known if the effectiveness of these amendments will be extended or made permanent.

 

COVID-19 Leave Laws Extended
The mayor has extended the following requirements through November 5, 2021.

 

  • All D.C. employers must provide employees who have been employed for at least 30 days with up to 16 weeks of unpaid job-protected leave if the employee is unable to work due to specified reasons due to COVID-19. Click here for further information and click here for the updated posting.

 

  • D.C. employers with between 50 and 499 employees must also continue to provide up to 80 hours of paid sick leave to employees employed for at least 15 days. Click here for further information.

 

Ban on Non-Compete Agreements

In passing the Ban on Non-Compete Agreements Amendments Act, Washington D.C. joins a handful of other states in prohibiting virtually all non-competes. The Act officially took effect in March; however, the applicability date – the date the ban begins to apply – is not yet certain. The Act will not apply until it is included in an approved budget and financial plan, which is anticipated to be later this fall.

 

The Act prohibits any D.C. employer from entering into an agreement or maintaining a policy that restricts any covered D.C. employee from simultaneously or subsequently being employed by a third party, providing paid services to a third party, or operating their own business, whether such activities are competitive or not. The Act prohibits the restriction of any covered D.C. employee from performing other work while employed, whether or not such other work is competitive, and regardless of the employee position or access to their employer’s confidential or proprietary information.

 

The Act does not invalidate non-compete provisions in agreements entered into prior to the Act’s applicability date. The Act does permit otherwise lawful provisions that restrict employees from disclosing their employers’ confidential, proprietary, or sensitive information; for example, a client list or trade secret. The Act does not mention non-solicitation provisions. When the applicability of this Act is determined, employers must provide notice to all covered D.C. employees.

 

January 2021

 

Displaced Workers Right to Reinstatement and Retention Amendment Act

Effective February 1, 2021, the District of Columbia will provide expanded reinstatement and retention rights for eligible employees displaced by COVID-19 once their employer starts rehiring after the pandemic. The new law - the Displaced Workers Right to Reinstatement and Retention Amendment Act - also allows for reinstatement and retention if there is a change in the employer's ownership, controlling interest or identity.

The Act's anti-retaliation and enforcement provisions expire on June 20, 2024. All other provisions expire on June 30, 2023. Learn more here.

 

June 2020

Paid Family Leave

On July 1, 2019, the district began the collection of taxes from employers, and on July 1, 2020, the district will begin administering paid leave benefits. All employers covered by the Paid Family Leave (PFL) law must post the employee notice in their worksites. The notice must also be provided in electronic or physical form to:

  • Individual employees when the employer receives direct notice of the employee’s need for leave that could qualify for PFL benefits
  • All new employees within 30 days of hire
  • All employees annually

For an employer toolkit, click here.