Update Applicable to:
All employers in the state of Colorado and any employer who has at least one employee performing work in Colorado.
What happened?
The Colorado legislature recently passed Senate Bill 23-105, which amends Colorado’s Equal Pay for Equal Work Act, to clarify certain existing employer obligations and add new obligations. Gov. Jared Polis signed the bill into law, which will take effect on January 1, 2024.
What are the details?
The newly enacted amendment makes several key changes to employers’ pay transparency obligations including obligations to announce, post, or otherwise make known job opportunities; the information to be disclosed in the notifications; notice to current employees regarding selected candidate; notice of requirements for career progression; as well as some amendments to the Equal Pay Act’s wage discrimination provisions. There are also updated definitions for the terms “career development,” “career progression,” “job opportunity,” and “vacancy.”
Under the Act, employers must make reasonable efforts to announce, post, or otherwise make known each job opportunity to all employees on the same calendar day and before the employer makes a decision. If an employer is physically located outside of Colorado and has fewer than 15 employees in Colorado who all work remotely, then the employer is required to provide notice of only remote job opportunities, an obligation that expires on July 1, 2029.
Under the law, once an employer selects a candidate to fill a job opportunity, the employer must make reasonable efforts to announce to employees with whom the selected candidate is expected to work the candidate’s:
(1) name;
(2) former job title, if selected while already employed by the employer; and
(3) new job title.
Additionally, the employer must disclose information on how these 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. This announcement must be made within 30 days of that candidate beginning work in the position.
For positions with career progression, an employer must disclose and make available to all eligible employees: (1) the requirements for career progression, and (2) each position’s terms of compensation, benefits, full-time or part-time status, duties, and access to further advancement.
For more information, please see the links below:
Equal Pay Transparency Rules 7 CCR 1103-13
What do employers need to do?
To prepare for implementation, Colorado employers (as well as non-Colorado employers with remote workers in Colorado) should evaluate their external and internal job posting process to ensure compliance with the law and any forthcoming regulations.
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