Employment Contract Non-Preparation Penalties Washington D.C.

The Written Notice of Hire must be comprehensive and include a specific, detailed list of key employment terms to ensure full transparency between the employer and the employee. Missing even a single required element constitutes a violation and can trigger the imposition of fines.

Required Contents:

• Employer’s legal name, any “doing business as” (DBA) names, main office address, mailing address, and telephone number.
• Employee’s rate of pay and the explicit basis of that rate (e.g., hourly, salary, commission, piece rate).
• Any allowances claimed as part of minimum wage, such as tips, meals, or lodging.
• The applicable overtime rate or a clear statement of the employee's exemption status.
• Applicable living wage rate or exemption, and prevailing wage rates if covered by certain contracts.
• The employee’s regular payday schedule.
• The precise date employment begins.
• Any other material information required by the Mayor of D.C.

Compliance hinges not only on providing a complete notice but also on timely delivery and consistent maintenance of the information. The notice must be provided to all new employees at the time of hire, meaning on or before the first day of work. For all existing employees, the notice must be updated and reissued within one business day of any change in the key terms of employment, such as an alteration to the rate of pay, overtime eligibility, or the regular payday schedule. Providing the update after the changes have already taken effect is considered a violation of the Act.

Employers face severe financial consequences for basic compliance failures related to the notice. Failure to provide the required Written Notice of Hire to an employee at the time of hire results in a fine of $500 per affected employee. Similarly, failure to retain a signed copy of the notice for the mandatory period of at least three years after employment ends also results in a $500 fine per affected employee. If a violation continues after a notice of violation has been issued, daily fines may be imposed, starting at $50 per employee per day for a first offense and increasing to $100 per day for subsequent, continuing offenses.

Beyond administrative fines, the WTPAA includes criminal penalties for more serious infractions, categorized as negligent or willful failures to comply. Negligent violations of the Act are classified as a misdemeanor, subject to fines up to $2,500 per affected employee for the first offense and increasing to up to $5,000 for any subsequent offenses. Willful violations are subject to even steeper penalties, including fines up to $5,000 per affected employee and possible imprisonment for up to 30 days for the first offense; subsequent willful offenses carry fines up to $10,000 and imprisonment up to 90 days.

It is unlawful for employers to discharge, threaten, penalize, or in any other manner discriminate or retaliate against any employee who files a complaint, assists in an investigation, or exercises any right provided under the Wage Theft Prevention Act. Crucially, if an adverse employment action (such as termination, demotion, or pay reduction) occurs within 90 days of an employee's protected activity, the action is legally presumed to be retaliation. The burden of proof then shifts entirely to the employer, who must provide clear and convincing evidence to the contrary to rebut this presumption.

Employers should adopt a rigorous, systematic approach to Notice of Hire compliance. This includes consistently utilizing a standardized Written Notice of Hire template that has been verified to meet every current D.C. legal requirement, including multi-language provisions where applicable. The notice must be issued at the time of hire without exception. Furthermore, HR and management staff must be trained to recognize when updates are legally required and ensure they are processed and issued within the required one business day of any change in key terms. Finally, maintaining a secure, organized record-keeping system for all signed notices is essential, keeping records for at least three years after the employee’s separation from the company.

Upon receiving a formal violation notice from the Department of Employment Services (DOES), an employer’s immediate response is critical. The first step is to thoroughly review the allegations and compare them directly against internal employee documentation and payroll records. If the employer possesses proof of timely and complete notice issuance—such as a signed, dated copy—this evidence should be submitted promptly to the Department. Critically, employers must immediately correct any deficiencies identified in the notice to prevent the accrual of ongoing daily fines, and they should maintain detailed, written records of all communication with the agency, as well as any internal corrective actions taken.