December 16, 2014
Last September, DC Mayor Vincent Gray signed into law the Wage Theft Prevention Amendment Act of 2014, which amends several DC wage payment laws and requires wage-related communications for DC employers, including nonprofits.
Once the new law goes into effect, employers will be obligated to transmit to employees a form, in English as well as each employee’s primary language, with detailed information related to employee wages, pay rate and exemptions. This information must be kept current with amended notices issued following such events as new employee wages, change in office location, etc.
Amendments to the Accrued Sick and Safe Leave Act, Wage Payment and Wage Collection Law, Minimum Wage Revisions Act and the Living Wage Act also introduce new penalties facing employers who do not comply with DC wage payment laws or provide the required notices to employees.
The new legislation also supports employees’ ability to bring civil action against employers for infractions related to wage laws.
No set date exists for implementation of the new law but, according to an industry alert on the topic published by Venable LLP, the DC City Council estimates that, following a 30-day Congressional review period, it may take place in mid-January.
Employers, including nonprofits, who will be effected by the new notice requirement are encouraged to educate themselves on the new legislation and prepare now. Penalties may be applied to violations of the new law that occur after October 1. Nonprofits should therefore ensure that accurate records remain backdated to this date.
Additional information is provided in the Useful Resources section below. We recommend consulting with a professional attorney who has expertise in this area before making decisions that may impact your organization.
- DC Municipal Regulations and DC Register / ACT 20-426, “Wage Theft Prevention Amendment Act of 2014”
- Venable LLP / “DC Nonprofits Subject to New Notice Requirement and Bigger Penalties Under New Wage Theft Prevention Act”
- JDSupra / “DC Amends Wage Theft Prevention Act to Increase Employer Obligations and Penalties”
- FordHarrison / “DC Council Seeks to Amend Wage Theft Prevention Act”
Gelman, Rosenberg & Freedman CPAs does not advise on wage legislation. The intent of this Industry Alert is merely to share information that may be useful to the DC-area nonprofit community, but should in no way be construed as professional advice or guidance.
This article was originally posted on December 16, 2014 and the information may no longer be current. For questions, please contact GRF CPAs & Advisors at firstname.lastname@example.org.