Colorado’s “Ensure Equal Pay for Equal Work Act” Passed to Governor

Colorado continues to be one of the states leading the charge on equal pay when the Ensure Equal Pay for Equal Work Act was passed by the Colorado legislature and then signed by Governor Jared Polis. The new amendments – which clarify and create new obligations for internally posting job opportunities - become effective January 1, 2024. This act amends the Equal Pay for Equal Work Act, which was one of the first state laws to require that employers include pay range information on job postings.

The amendments require employers to make “reasonable efforts to announce, post or otherwise make known” each job opportunity to all employees on the same calendar day as it posts opportunities externally and prior to the date on which the employer makes the selection decision. Employers whose only physical location is outside of Colorado and have fewer than 15 employees working remotely in Colorado, are only required to provide notice of remote job opportunities through July 1,2029.

In the notification of the job opportunity the following information must be disclosed:

• The hourly or salary compensation or range of the hourly or salary compensation
• General Description of the benefits and other compensation applicable to the job opportunity
• Date the application window is anticipated to close

Within 30 days after a candidate who is selected to fill a job opportunity begins working in the position, the employer must make reasonable efforts to announce, post or otherwise make known the following to employees with whom the employer intends the selected candidate to work with regularly:

• Name of the Candidate selected for the job opportunity
• Selected Candidate’s former job title if selection while already employed by the employer
• Selected Candidate’s new job title
• Information on how the employees may demonstrate interest in similar job opportunities in the future, including identifying individuals or departments to whom the employees can express interest in similar job opportunities
• For positions with career progression, an employer shall disclose and make available to all eligible employees the requirements for career progression, in addition to each position’s terms of compensation, benefits, full-time or part-time status, duties, and access to further advancement

A person aggrieved by a violation of this Act may obtain relief for back pay for the entire time the violation continues, not to exceed 6 years.

The Ensure Equal Pay for Equal Work Act and the increase in Pay Transparency laws throughout the country aim to reduce pay inequities and increase equal opportunities within the workforce. As more laws are passed that require providing compensation data to applicants and employees, it’s imperative that organizations proactively review their compensation structure and consider conducting a pay equity analysis.