Washington DC Labor Laws for HR Compliance – 2025

DC Labor Laws – One of the Toughest for HR Compliance

If you are doing business in the District of Columbia as an employer, it is important to stay up-to-date on the latest labor laws to ensure compliance and avoid costly penalties. These penalties include fines, criminal convictions and imprisonment, attorney fees, and court-ordered payment of punitive damages. With the start of 2025, several new labor laws have come into effect in Washington DC, and others have been around in various iterations for a while. In this guide, we’ll cover all the essential labor laws and local regulations that you need to know to stay compliant in 2025.

Minimum Wage

Effective Jul 1, 2024, the minimum wage in Washington DC has increased to $17.50 per hour, up from $17.00 per hour in 2023. This applies to all employees who are at least 18 years old, except for tipped employees, who have a separate minimum wage of $10.00 per hour. This minimum wage moving forward will be tied to percent increases in Consumer Price Index. Tipped minimum is being phased out over time, with the tipped minimum increasing to $12.00 on July 1, 2025.

Employers must ensure that their employees are paid at least the minimum wage for all hours worked, including overtime. In addition to DC minimum wage, a few years ago, the District amended its Wage Theft Prevention Amendment Act to increase penalties on failure to pay earned wages and maintain accurate pay information.

Noncompliance penalties: For minimum wage violations or wage theft, employers are liable for damages in the amount of wages owed, liquidated damages equal to three times the amount of wages owed, and penalties of $50-$100 per each violation. Employers may face additional penalties for recordkeeping and notice violations. Employer judgements include retroactive payment of wages earned.

Wage Transparency

Effective June 30, 2024, the District amended its Wage Transparency Act of 2014 to require employers to include in their job advertisements and posted job descriptions, the projected wage ranges for roles to be filled within a minimum and maximum range. The changes highlight a focus shift to total compensation, and inclusion of prospective employees. Experienced employers will have already been accustomed to conducting compensation studies and developing compensation models with ranges built into each position, however, this mandates all employers to not just have updated salary ranges, but have them publicly available to the public and applicants, in particular. Other key rules are outlined as part of the amended Wage Transparency Act:

• The Act now covers all monetary and non-monetary benefits an employer provides or promises to provide an employee in exchange for the employee’s services to the employer. “Compensation” is now used in place of “wage”.
• The term “employer” now includes any individual, firm, association, or corporation that employs at least one employee in the District, excluding the District and Federal governments.
• Employers are prohibited from screening prospective employees based on their wage history, requesting or requiring disclosure of a prospective employee’s wage history as a condition of employment, or seeking wage history information from a prospective employee’s previous employers.
• Before the first interview, employers are required to inform prospective employees about the existence of healthcare benefits that may be available to them.
• Employers must post a notice in the workplace informing employees of their rights under the Act, in at least one location with regular foot traffic.

Original rules that still apply:

• Employees are permitted to inquire about, disclose, compare, or discuss their own wages or those of their colleagues without fear of retaliation.
• Employers cannot require employees to refrain from such discussions as a condition of employment.
• Employers are forbidden from discharging, disciplining, interfering with, or retaliating against employees who engage in wage discussions or who participate in related complaints or investigations.
• Employees who have regular access to wage information of others—such as human resources personnel—may be restricted from sharing that information, unless it’s part of an investigation or legal obligation.
• The Act does not obligate any employee to disclose their wages upon inquiry, nor does it require employers to disclose an employee’s wages to others.
• The Attorney General is now authorized to investigate violations, administer oaths, issue subpoenas, and bring civil actions against employers or individuals violating the Act. Upon prevailing in court, the Attorney General is entitled to reasonable attorneys’ fees, costs, and statutory penalties described below.

Noncompliance penalties: Employers found in violation of the Act may face civil fines: $1,000 for the first violation, $5,000 for the second, and $20,000 for each subsequent violation. To initiate investigation, aggrieved employees or potential employees would have to file a complaint under OAG.

Overtime

In Washington DC, non-exempt employees are entitled to overtime pay at a rate of 1.5 times their regular rate of pay for all hours worked over 40 hours in a workweek. Exempt employees, such as executives and professionals, and other employees with special exemptions are not entitled to overtime pay. It’s important to properly classify employees as exempt or non-exempt to ensure compliance with overtime laws.

Noncompliance penalties: The penalties can include fines, legal action, and even criminal charges. Employers who violate overtime laws can be subject to penalties up to $500 per violation, and up to $1,000 per violation for repeat offenders. Additionally, employees may be able to recover unpaid overtime wages and liquidated damages equal to the amount of unpaid overtime, as well as attorneys’ fees and costs if they pursue legal action.

Non-Compete Agreements

Non-Compete Clarification Amendment Act of 2022: Effective October 1, 2022, this act prohibits employers from enforcing non-compete agreements for most employees, with exceptions for highly compensated employees. The act defines a “highly compensated employee” based on a specific salary threshold, which is subject to annual adjustments.

What is an “HCE”, currently?

The District of Columbia uses a different definition of HCE than the IRS or the FLSA.

D.C. Non-Compete Act Definition of HCE:

• As of January 1, 2024, the threshold is $154,200 for most employees and $257,000 for medical professionals, adjusted annually for inflation.
• Focuses on total annual compensation (base salary, bonuses, commissions, and non-discretionary compensation).

Paid Sick Leave

Under the Accrued Sick and Safe Leave Act (ASSL), employees in Washington DC are entitled to paid sick leave. For every 43 hours worked, employees must accrue one hour of paid sick leave, up to a maximum of 56 hours per year. Employees must accrue leave immediately upon hire, and must be allowed to use the paid sick leave no later than 90 days after hire. Employers must allow employees to use sick leave for their own illness or injury, to care for a family member, or for reasons related to domestic violence, sexual assault, or stalking.

Noncompliance penalties: Each offense in violation of the Act is fined. First violation is $1,000, second is $1,500, and all violations thereafter are $2,000 each.

Paid Family and Medical Leave

The DC Family and Medical Leave Act (DCFMLA) provides paid family leave benefits for specified covered events. They are:

1. Parental Leave – bonding with new child for up to twelve (12) weeks per year
2. Family Leave – caring for a family member up to six (6) weeks per year
3. Medical Leave – time away for your own serious health conditions for up to six (6) weeks in a year
4. Prenatal Leave – time away for prenatal medical care for up to two (2) weeks per year

Noncompliance penalties: The penalty for not posting the DCFMLA poster is $100 fine for each day of noncompliance. Employers are required to register on the DOES portal to pay quarterly taxes to the Paid Family Leave fund.

Anti-Discrimination

In Washington DC, it is illegal to discriminate against employees on the basis of race, color, religion, national origin, sex, age, marital status, personal appearance, sexual orientation, gender identity or expression, family responsibilities, genetic information, disability, or any other protected status. Employers must ensure that their employment practices do not discriminate against employees or applicants based on any of these protected characteristics.

As part of the Unemployed Anti-Discrimination Act of 2012 (UADA) (effective October 1, 2015), employers are prohibited from discriminating on applicants by:

• Refusing or failing to consider hiring a job applicant because the individual is unemployed;
• Refusing or failing to hire a job applicant because the individual is unemployed;
• Indicating in a job vacancy announcement that an applicant will not be considered or hired because they are unemployed, or is disqualified for the job because they are unemployed; and
• Retaliating against an employee who opposes or reports a violation of this Act.

Noncompliance penalties: The DC Commission on Human Rights investigates UADA violations and hands out penalties. Each offense in violation of the UADA is fined. First violation is $1,000, second is $5,000, and all violations thereafter are $10,000 each. Violations of the District of Columbia Human Rights Act may result in investigations by the Commission, with potential damages awarded if a violation is found to have occurred.

Workplace Safety

The Occupational Safety and Health Act (OSHA) requires employers to provide a safe and healthy workplace for their employees. Employers must comply with OSHA regulations and provide employees with training, protective equipment, and other necessary measures to ensure workplace safety.

Noncompliance penalties: As of January 17, 2023, based on severity, OSHA violations can result in fines up to $15,625 per violation, with maximum penalty for willful or repeat offenses set at $156,259 per violation! Corrective actions required by employers include audit requirements and special occupational safety and health training.

Workers’ Compensation

In Washington DC, covered employers (employers with more than one employee) are required to provide workers’ compensation insurance coverage to their employees. This insurance provides benefits to employees who are injured or become ill as a result of their work. Covered employers must ensure that their workers’ compensation insurance coverage is up-to-date and that they comply with all reporting requirements. Regarding accidental injury and occupational disease reporting, employers must deliver No. 7 OCWC report to the insurer for each incident, as soon as possible but no later than ten (10) days after learning of the incident. Previously unreported disabilities of more than three (3) days must be reported to the insurer ASAP, but no later than ten (10) days after learning of the disabilities.

Noncompliance penalties: If you fail to obtain coverage or fail to report workers’ compensation reportable incidents, you can be fined up to $10,000.

Unemployment

DC’s unemployment law, District of Columbia Unemployment Compensation Act, provides unemployment benefits to eligible workers who have lost their job through no fault of their own. Employers in DC are required to pay unemployment insurance taxes and to comply with certain reporting and notification requirements.

Under DC’s unemployment law, employers must register with the DC Department of Employment Services (DOES) within 30 days of becoming subject to the unemployment insurance tax. Employers must also report certain information to DOES, such as wages paid to employees, on a quarterly basis. Additionally, employers must provide certain notices to their employees, such as a notice of their right to file for unemployment benefits.

Noncompliance penalties: The penalties for noncompliance with DC’s unemployment law can include fines, legal action, and other consequences. For example, employers who fail to register with DOES can be subject to a penalty of up to $1,000 for each quarter of noncompliance. Employers who fail to report wages or who submit false reports can be subject to penalties of up to $5,000 per violation. Additionally, employers who fail to provide required notices to their employees can be subject to a penalty of up to $100 for each employee who did not receive the notice.

The Cannabis Employment Protections Amendment Act

The Cannabis Employment Protections Amendment Act of 2022 strengthens employee rights regarding off-duty cannabis use and medical cannabis status. Here’s what’s now required in 2025:

• Prohibited Actions: Employers cannot fire, refuse to hire, or discriminate against employees for off-duty cannabis use or medical cannabis status unless the employee is impaired at work or in a safety-sensitive role.
• Employer Exceptions: Federal compliance obligations (e.g., federal contracts) still allow limited exceptions to these protections.
• Enforcement: The D.C. Office of Human Rights (OHR) is now fully authorized to investigate complaints, impose penalties, and require corrective actions.
• Penalties: Noncompliant employers may face fines, mandatory policy updates, and damages to affected employees.
• Policy Updates: Employers must revise workplace policies, designate safety-sensitive roles, and notify employees of their rights under the Act.

To stay compliant, employers should review policies, train staff, and consult legal experts. For more details, visit the D.C. Office of Human Rights website.

Noncompliance penalties: OHR can impose penalties on employers when a violation is found – in the form of civil fines, compensatory damages, and other remedies, such as reinstatement for wrongful terminations. The exact amounts and extent of fines is circumstantial.

DC Poster Compliance

In addition to the Federal posters for compliance that you would need to display in a conspicuous location in your offices, these posters must also be displayed:

• District of Columbia Minimum Wage
• Living Wage Act of 2006
• Wage Theft Prevention Act
• DC Family and Medical Leave Act (DCFMLA)
• DC Parental Leave Act
• Accrued Sick and Safe Leave Act
• EEOC Know Your Rights: Workplace Discrimination is Illegal
• Equal Employment Opportunity
• Notice of Non-Discrimination in Public Accommodations
• Protecting Pregnant Workers Fairness Act
• Unemployment Compensation Notice
• Workers’ Compensation Notice
• Universal Labor Law

Voluntary, but highly encouraged posters are:

• Pregnancy and Parental Rights in the Workplace
• The Right to Breastfeed
• LGBTQ Diversity in the Workplace

Compliance with DC labor laws is essential, but you already know this. What you find out with trial and error is that labor compliance in places like Washington DC is nearly a full-time job. By staying up-to-date on the latest labor laws, you can ensure that your business is in compliance and avoid costly penalties. Remember to review your policies and procedures regularly to ensure that they are in line with the latest labor laws. This guide will show you the way, but if you’re short on time, it won’t do you much good just to know this info. Someone still has to execute the strategic plan, taking action to audit for HR compliance and and continuously mitigate these risks.