Seattle-based real estate giant Redfin failed to disclose pay in its job openings, a new lawsuit claims.

Skagit County resident Shannon Spencer alleges in the lawsuit filed Tuesday in King County Superior Court that Redfin’s job advertisements did not include wage scales or salary ranges, as required by Washington law.

In 2023, Washington became one of a handful of states that require companies to include a salary range and description of benefits in each job posting. The legislation, which applies to companies with 15 or more employees, aims to help close the gender pay gap and ensure companies are offering fair compensation.

Spencer argues in the complaint that he lost “valuable time” applying to a position and that his ability to negotiate pay remains adversely affected.

The plaintiff “expected that at some point he would learn the wage scale or salary range to be offered to the hired applicant,” the complaint said. “However, (Redfin) withheld the wage scale or salary range to be offered to the hired applicant in the posting and throughout the application process.”

Spencer’s attorneys with Seattle-based law firm Emery Reddy seek class-action status for the case and $5,000 in damages for each class member. They propose opening the case to applicants for a Redfin job opening without pay disclosure between April 3, 2023, and July 26, 2025.

Rocket Companies acquired the real estate listing company for $1.75 billion in July.

In a statement, a Redfin spokesperson said the company plans to vigorously defend itself against the claims.

“The person who filed this lawsuit has filed similar cases against many other companies seeking to hire employees, and this plaintiff’s attorney has filed hundreds of these cases,” the spokesperson said. “It appears that they are more interested in using litigation as a tactic to strong-arm payments rather than looking for gainful employment.”

The lawsuit is part of a larger pattern that has shaken Washington’s business community in the three years since the law passed.

Proponents of the law argue it helps candidates negotiate pay by showing how much a company can afford to offer. But the business industry contends the law has opened companies up to a storm of legal challenges.

Last year, the Washington Supreme Court determined the law does not limit who qualifies as an applicant — allowing job seekers to continue suing employers for noncompliance without having to prove they actually applied to the job.

The Legislature approved changes to the law shortly after the ruling, allowing companies a five-day grace period to correct job postings before they could face costly litigation.

Trade groups said in legislative hearings that law firms were creating a “cottage industry” where people applied for jobs not to secure employment, but to sue the employer.

The new lawsuit adds to a pile of other cases involving Redfin.

The Federal Trade Commission sued Redfin and its Seattle-based competitor Zillow last year for allegedly conspiring to eliminate competition for rental housing listings.

Last month, a federal judge allowed a lawsuit by buyers against major real estate brokerages, including Redfin, to move forward with some claims. The homebuyers accuse the companies of conspiring to fix commissions and inflate home prices.

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