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Colorado Makes Significant Amendments to the Equal Pay for Equal Work Act

26 Jun


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

Interpretive Guidance

Fact Sheet for Employers

Colorado DOL Equal Pay Page

Law Firm Article 1, Article 2


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.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Colorado PEO services can help you navigate complex employment laws and keep your business compliant.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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