Coming soon in Colorado: increased employer obligations to ensure equal pay

Since Colorado enacted the Equal Pay for Equal Work Act (EPEWA), many have wondered what obligations employers would incur beginning in January 2021. In particular, the Act's mandate regarding pay transparency has sparked a multitude of questions. This article explores the Colorado Department of Labor and Employment's (CDLE) recent efforts to answer some of the most pressing inquiries.

Pay transparency requirements

On January 1, 2021, the EPEWA becomes enforceable in Colorado. The Act seeks to close the gender pay gap by prohibiting wage discrimination based on sex. In particular, it mandates that employers comply with pay transparency rules when they wish to hire or promote candidates. Recent proposed rules from the CDLE have sought to clarify employer obligations regarding promotional opportunities.

The Act says employers must make reasonable efforts to announce or post promotional opportunities to all employees on the same day and before making a decision. The postings must disclose the hourly or salary compensation for the position (or a range) as well as a general description of all benefits or other compensation to be offered.

Clarification of employer obligations

The vagueness of the EPEWA's pay transparency requirements has sparked concern. In late September 2020, the CDLE proposed "equal pay transparency rules," which are likely to become adopted with little modification. As explored below, the proposed rules answer some of the most important questions the Act itself didn't address.