Floyd v. Insight Global LLC

District Court, W.D. Washington·Decided May 10, 2024·No. 2:23-cv-01680·Unknown

Opinion

1 The Honorable Barbara J. Rothstein

5 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 6 AT SEATTLE

7 NO. 23-cv-1680-BJR ALEXANDER FLOYD, 8 AMENDED1 ORDER GRANTING Plaintiff, MOTION TO DISMISS 9 v. 10 INSIGHT GLOBAL LLC, et al., 11 Defendants. 12

13 I. INTRODUCTION 14 The Equal Pay and Opportunities Act (“EPOA”), RCW 49.58, promotes pay equity in 15 Washington State by addressing business practices that contribute to income disparities. On January 16 1, 2023, a revised provision took effect, which requires certain employers to disclose the wage scale 17 or salary range, and a general description of other compensation and benefits, in each posting for 18 an available position. RCW 49.58.110. Employees and job applicants are entitled to remedies for 19 violations of this provision, which may include statutory damages. Id. Within a few months, 20 multiple plaintiffs, represented by Emery Reddy, PLLC, filed multiple putative class-action 21 lawsuits against various companies who had job postings that are alleged to be non-compliant with 22 1 This order is amended to remand this case, given the Court’s finding that it has no subject matter jurisdiction due to 23 Plaintiff’s lack of Article III standing.

24 AMENDED ORDER GRANTING MOTION TO DISMISS 1 the EPOA job-posting provision. This case is one of 27 lawsuits with virtually identical complaints 2 filed in King County Superior Court and subsequently removed to this Court by the defendants. 3 This case was removed to this Court on November 2, 2023, and Defendant, Insight Global LLC 4 (“Insight Global”), filed a motion to dismiss. Mot., ECF No. 21. Having reviewed the materials2 5 and the relevant legal authorities, the Court will grant Insight Global’s motion and remand this case 6 to King County Superior Court pursuant to 28 U.S.C. § 1447(c). The reasoning for the Court’s 7 decision follows. 8 II. BACKGROUND 9 A. Statutory Background 10 Washington State passed its first equal pay legislation, the Equal Pay Act, in 1943, and 11 amended it for the first time in 2018, at which time it became known as the Equal Pay and

12 Opportunities Act (“EPOA”). See RCW 49.12.175; 49.58.005. The Washington Legislature found 13 that “despite existing equal pay laws, there continue[d] to be a gap in wages and advancement 14 opportunities among workers in Washington, especially women.” RCW 49.58.005. The law was 15 updated “to address income disparities, employer discrimination, and retaliation practices, and to 16 reflect the equal status of all workers in Washington state.” Id. 17 In 2019, the law was further updated to address discriminatory hiring practices by 18 prohibiting employers “from seeking the wage or salary history of an applicant for employment in 19 certain circumstances,” and by requiring “an employer to provide wage and salary information to 20 applicants and employees” upon request, although only “after offering the applicant the position.” 21 Id.; RCW 49.58.100-110. The 2019 amendments permitted “[a]n individual” to pursue relief for

22 2 Including the motion, ECF No. 21; response in opposition, ECF No. 25; and reply, ECF No. 27; together with 23 multiple exhibits as well as related motions and responses.

24 AMENDED ORDER GRANTING MOTION TO DISMISS 1 wage disclosure violations. Id. Remedies included “actual damages; statutory damages equal to the 2 actual damages or five thousand dollars, whichever is greater;” as well as costs and reasonable 3 attorneys’ fees. RCW 49.58.060-070. 4 In 2022, the Washington Legislature enacted the most recent amendment, which modified 5 RCW 49.58.110 to require employers to proactively disclose compensation information when a 6 position is posted as available. This “allows a discussion at the start of the process instead of after 7 an offer has been made, which will increase the ability to negotiate pay.” Compl. ¶ 3, ECF No. 1-1 8 (quoting H.B. Rep. ESSB 5761, at 2). The 2022 amendment also replaced the term “individual” in 9 the relief section, specifying that an applicant or employee is entitled to remedies. RCW 49.58.110 10 (4); H.B. Rep. ESSB 5761, at 2. 11 The provision became effective January 1, 2023, and reads as follows:

12 (1) The employer must disclose in each posting for each job opening the wage scale or salary range, and a general description of all of the 13 benefits and other compensation to be offered to the hired applicant. For the purposes of this section, “posting” means any solicitation 14 intended to recruit job applicants for a specific available position, including recruitment done directly by an employer or indirectly 15 through a third party, and includes any postings done electronically, or with a printed hard copy, that includes qualifications for desired 16 applicants. 17 (2) Upon request of an employee offered an internal transfer to a new position or promotion, the employer must provide the wage 18 scale or salary range for the employee’s new position. 19 (3) This section only applies to employers with 15 or more employees. 20 (4) A job applicant or an employee is entitled to the remedies in RCW 49.58.060 and 49.58.070 for violations of this section. 21 Recovery of any wages and interest must be calculated from the first date wages were owed to the employee. 22 23

24 AMENDED ORDER GRANTING MOTION TO DISMISS 1 RCW 49.58.110. Although the EPOA defines “employee” and “employer,” and the provision 2 defines “posting” and limits application to employers with 15 or more employees, there is no 3 definition of “job applicant.” See RCW 49.58.010; 49.58.110. The Washington State Department 4 of Labor and Industries (“Department” or “L&I”) is the state agency charged with implementing 5 the EPOA and provides guidance regarding the interpretation and application of the EPOA. See 6 RCW 49.58.010, 49.58.090. In response to questions employers raised while attempting to comply 7 with the new EPOA requirements, the Department issued Administrative Policy ES.E.13 in late 8 2022 to provide information for employers on how to comply with the pay transparency 9 requirements. It also issued an online publication to assist with filing a L&I EPOA complaint, and 10 an Employer’s Guide to the EPOA. Exs. A, B, ECF Nos. 22-1, 22-2. The L&I complaint form 11 includes, in its covering instructions: “Important: A person is only considered an ‘applicant’ for the

12 specific posting they applied for, not for every available job of the employer.

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