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An Overview: Part Two of Colorado’s Equal Pay for Equal Work Act – Transparency in Pay and Opportunities for Promotion and Advancement

On January 1, 2021, Colorado passed the Equal Pay for Equal Work Act. Though these requirements have been in effect for some time, its requirements still seem to get missed from time-to-time. This blog serves as a friendly reminder to employers to review these requirements to incorporate them into everyday practices and job postings. Part Two of Colorado’s Equal Pay for Equal Work Act focuses on employers’ obligations relating to transparency in pay and opportunities for promotion and advancement. This blog post will provide an overview of the key aspects and requirements of Part Two of Colorado’s Equal Pay for Equal Work Act.

1. Disclosing Compensation in Job Postings.

One key aspect of Part Two of the Act requires employers to include specific details in their job postings. Employers are required to include in their job postings:

(1) the hourly or salary compensation (or a range thereof) offered for the position;

(2) a general description of any bonuses, commissions, or other compensation; and

(3) a general description of all benefits the employer is offering for the position.

2. Requirements for Posting Promotional Opportunities.

The Act also aims to address disparities when it comes to internal promotions. Employers must make reasonable efforts to announce, post, or otherwise make known all opportunities for promotion to all current employees on the same calendar day and prior to making a promotion decision. All employees must be notified of a promotional opportunity, regardless of whether they are qualified for the position.

Notice of a promotional opportunity must:

(1) be in writing;

(2) include the job title, compensation, benefits, and means by which employees may apply; and

(3) be provided in a way that allows all employees to access the promotional opportunity notice and inform employees where to find the notice.

3. Exceptions to the Requirements for Posting Promotional Opportunities.

Employers are not required to provide notice to employees of a promotional opportunity under the following circumstances:

Confidentiality. Notice is not required if the particular opening needs to be kept confidential because an employee currently in the position does not know that they will be removed from the position.

Automatic Consideration for Promotion. Notice is not required if the employer represented to an employee that they would be automatically considered for a promotion to a specific position within one year.

Temporary Positions. Notice is not required if an employee is hired to fill a position on a temporary basis.

Employees Outside of Colorado. Notice is not required to notify non-Colorado employees.

Jobs Performed Outside of Colorado. Employers must notify Colorado employees of promotional opportunities outside of Colorado but do not need to include compensation or benefits in these notices.

4. Employers Record Keeping Obligations.

Part Two of the Act mandates that employers retain records of job descriptions and wage history for each employee for the duration of their employment plus two years after the end of their employment.

Part Two of Colorado’s Equal Pay for Equal Work Act places important obligations on employers to promote pay equity and transparency. We hope we were able to provide some guidance regarding an employer’s responsibilities under the Act.

It is important to note that this Act has been recently amended, and changes will go into effect January 2024. We will provide an update on such changes in the future.

For more information regarding Colorado’s Equal Pay for Equal Work Act, you may refer to the following resources:

Colorado Equal Pay for Equal Work Act

Colorado Department of Labor and Employment Website: Equal Pay for Equal Work Part Two

Equal Pay Transparency Rules

The Division of Labor Standards and Statistics’ comprehensive guidance on applying and interpreting Colorado’s Equal Pay for Equal Work Act

INFO #9: Equal Pay for Equal Work Act, Part 2: Pay and Promotion Transparency

 Mallon Lonnquist Morris & Watrous, PLLC, is a business, employment, real estate, and litigation law firm in Denver, Colorado. The attorneys at MLMW regularly represent employers in matters related to their business and employment practices.