SSB 5408
SignedSenate
Wage and salary disclosures
Allowing for corrections to wage and salary disclosures.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill requires employers with 15 or more employees to publicly share wage/salary ranges and benefit details in job postings and to provide that same information to employees upon internal transfer or promotion. It also creates a process for correcting minor errors without penalties if done quickly.
- Employers with 15 or more employees must include the wage scale or salary range and a general description of benefits and other compensation in every job posting (including electronic and printed ads).
- Employers must provide the wage scale or salary range for a new position when an employee is offered an internal transfer or promotion.
- Job applicants or employees can seek remedies (like unpaid wages and interest) if an employer violates the disclosure rules, but only after the employer is given written notice and fails to correct the issue within 10 business days.
- The law includes a 'safe harbor' provision: if an employer corrects a non-compliant job posting within 10 business days of receiving written notice, they avoid penalties or damages.
Who is affected
- Employers with 15 or more employees — Employers with 15 or more employees must disclose wage/salary ranges and benefits in job postings and provide them upon request for internal transfers or promotions.
- Job applicants and current employees — Job applicants will receive wage/salary ranges and benefit information upfront in job postings; employees seeking internal moves gain transparency about compensation for new roles.
- Washington State Department of Labor & Industries — The Washington State Department of Labor & Industries will enforce compliance and handle complaints related to violations.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (4)
Mandating wage/salary ranges and benefit descriptions in job postings increases transparency, empowering job seekers — especially women, people of color, and low-wage workers — to negotiate fair compensation and avoid underpayment, reducing information asymmetry in hiring.
Rights & LibertiesPeopleRef: SSB 5408, §1(1)Requiring employers to disclose wage scales for internal transfers/promotions helps employees assess fairness and equity in career advancement, supporting efforts to reduce wage discrimination and promoting upward mobility — particularly for historically marginalized groups.
Rights & LibertiesPeopleRef: SSB 5408, §1(2)The 10-day safe harbor for correcting posting errors encourages voluntary compliance and reduces punitive exposure for good-faith mistakes, balancing enforcement with practical employer realities.
Business & EmploymentPeopleRef: SSB 5408, §1(4)(b)The bill provides a clear enforcement mechanism (via L&I or private suit) for wage transparency violations, giving workers a credible tool to challenge non-compliance — though remedies are limited to back wages and interest, not punitive damages.
Business & EmploymentPeopleRef: SSB 5408, §1(4)(a)
Potential Concerns (4)
Employers with 15+ employees face new administrative and operational costs to draft, review, and maintain compliant job postings and internal compensation disclosures — especially burdensome for small businesses with limited HR staff or outdated HR systems.
Business & EmploymentPeopleRef: SSB 5408, §1(1), (2)The bill creates a private right of action for employees to sue for unpaid wages and interest for non-compliant postings, which may incentivize opportunistic lawsuits (e.g., against minor or technical errors) despite the 10-day safe harbor — chilling employer behavior and increasing legal exposure.
Business & EmploymentLean peopleRef: SSB 5408, §1(4)(a)The 10-day safe harbor provision reduces penalties for minor errors, but still requires employers to monitor and correct postings promptly — creating a compliance burden that disproportionately affects small employers without legal or compliance teams.
Business & EmploymentRef: SSB 5408, §1(4)(b)The 15-employee threshold excludes many small businesses, but those just above it (e.g., 16–50 employees) face disproportionate compliance costs relative to revenue — potentially discouraging hiring or formalizing informal compensation practices.
Business & EmploymentRef: SSB 5408, §1(3)
Who Is Most Affected
Low- and middle-wage workers — especially those in hourly, retail, or service roles — gain critical compensation transparency, enabling more informed job decisions and stronger negotiation leverage. This is likely to reduce wage gaps and improve trust in hiring.
Small to mid-sized employers (15–50 employees) face new compliance costs and legal risk, especially if they lack HR infrastructure. While the 10-day safe harbor helps, many will need to revise hiring processes and train staff — a modest but real burden.
Large employers (100+ employees) are best positioned to absorb compliance costs and may already have standardized compensation practices. They benefit from reduced hiring friction and improved employer branding, but face higher aggregate costs due to volume of postings.
Job applicants gain early visibility into compensation, reducing the risk of accepting offers below market value. This is especially beneficial for first-time job seekers, veterans, and those re-entering the workforce.
L&I gains new enforcement responsibilities, increasing workload for wage enforcement staff. While this strengthens labor standards, it may strain resources if complaint volume rises significantly — though the fiscal impact is projected to be minimal.