Top 12 Things Employers Need to Know About the Colorado Equal Pay for Equal Work Act | Fisher Phillips

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Colorado’s Equal Pay for Equal Work Act went into effect in early 2021, but employers across the state continue to have questions about the scope of the new law. While the Colorado Department of Labor and Employment has attempted to clarify the provisions of the Job Posting and Salary Transparency Act by adopting transparency rules for equal pay, its statement of basis, purpose, specific legal powers, and outcomes and provides its Interpretative Guidelines Notice and Formal Statement # 9 – There remain some common compliance issues that are not easily uncovered in these documents. We reviewed all of the detailed legislation and guidelines to come up with a list of the top 12 things employers need to know about the law.

Top 12 employer tips

  1. The law applies to any company that has at least one employee working in Colorado.
  2. The law requires employers to keep records of job descriptions and wage developments for every employee for the duration of the employment relationship – plus two years after the employment relationship has ended.
  3. The law prohibits employers from:
    • Paying a lower wage rate to an employee than an employee of the opposite sex (or an opposite sex plus another protected status) for substantially similar work for no legally justified reason;
    • Asking or relying on an applicant’s salary history;
    • Restricting employees from discussing their compensation with other employees; and
    • Retaliation against an applicant who does not disclose his or her pay history.
  4. Employers must publish the compensation range and a general description of all employee benefits in their job postings. An employer can include a hyperlink to compensation and performance information.
    • An employer can ultimately pay more or less than the advertised bandwidth. For bookings in multiple states or remote locations, only the Colorado area is required; Bookings can indicate a different area for different parts of Colorado.
    • The remuneration range must correspond to the respective advertised position (G., an employer cannot post a range of $ 70,000 to $ 100,000 for a junior accountant position just because they pay senior accountants at the higher end of that range, but they can post a range of $ 70,000 to $ 100,000 for an accountant if they do the Not posting to a junior or senior accountant).
  5. The inclusion of compensation and benefits in job postings is required for all jobs that are tied to a Colorado location or remote job. NOTE: The department recently took the position that a company that misses compensation by posting that a remote job is available to anyone in any location except Coloradoans Not compliant with the law.
  6. Employers must use reasonable efforts to provide promotion opportunities to all Colorado employees prior to making a promotion decision. A promotion exists when an employer has or expects a vacancy in an existing or new position that could be viewed as a promotion for at least one employee in terms of remuneration, benefits, status, duties, or access to further promotion. The ministry has stated that companies cannot restrict announcements to just “qualified” employees.
  7. Advertisements for promotion opportunities must contain the job title, the application modalities of the employees as well as the remuneration and additional services for the position. Advertising opportunities may also include required qualifications and intended recruitment (G., “Jo Doe is recommended for promotion to chief accountant. Salary $ 50-70,000; Health insurance & 401k. Interested applicants contact S. Poe in the HR department. “). Employers can post the announcements in any way, as long as all affected employees have access to them in their regular workplaces (either online or on paper) and are told where to find the required publications or announcements.
  8. If an employer recruits employees regularly (at least once a month) or automatically promotes them, including indirect cross promotions, to a specific position after the specified requirements have been met, an employer can issue a one-time static announcement about the promotion opportunity (G., in an employee handbook).
  9. The exceptions to the requirements for job advertisements are (1) the confidentiality of a replaced acting employee, (2) automatic promotion after a trial period of up to one year and (3) temporary / temporary / temporary employment for up to six employers must post, if the position becomes permanent).
  10. The law does not impose any restrictions on the recruitment process or recruitment. Employers may already know who the job is for, can indicate that applications are only open to people with specific qualifications, and can review or reject applicants based on qualifications. There is no set number of days an ad opportunity must be posted before the hiring decision is made. There is no obligation for an employer to accept or consider applications.
  11. An advertising opportunity must be provided for any job tied to a Colorado location, a remote job, or a job tied to a location outside of Colorado. For jobs that are tied to a location outside of Colorado, the employer is not required to disclose the compensation for the position.
  12. Employers who violate the requirements of the job posting may be fined between $ 500 and $ 10,000 for each violation. The ministry waives all fines if an employer reconciles their postings after the first violation.

What’s next?

Shortly after the law went into effect, a lawsuit against the constitutionality of the law’s compensation and promotional posting requirements was filed against the Department of the Colorado Federal Court. However, the court denied plaintiff’s motion for an injunction to cease application or enforcement in May, and all parties agreed to dismiss the lawsuit in early July. In other words, you need to adjust your practices and policies now to ensure compliance with the law as it will be the law of the land for the foreseeable future.



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