Colorado Pay Equity

• Wage Equality Regardless of Sex, Colo. Rev. Stat. Ann. § 8-5-101 et seq.
• Equal Pay Transparency Rules, 7 Colo. Code Regs. § 1103-13

• An employer shall not discriminate between employees on the basis of sex, or on the basis of sex in combination with another protected status as described in Section 24-34-402(1)(a), by paying an employee of one sex a wage rate less than the rate paid to an employee of a different sex for substantially similar work, regardless of job title, based on a composite of skill; effort, which may include consideration of shift work and responsibility.
• The law defines “sex” to mean an employee’s gender identity.

• Seniority system
• Merit system
• System which measures earnings by quantity or quality of production
• Geographic location where the work is performed
• Education, training, or experience to the extent that they are reasonably related to the work in question
• Travel, if the travel is a regular and necessary condition of the work performed

• Under the law, employers are prohibited from:
  • Seeking the wage rate history of a job applicant;
  • Relying on an applicant’s wage history to determine a wage rate;
  • Discharging or discriminating against an employee for exercising rights under the law on behalf of anyone or assisting in the enforcement of the law;
  • Discriminating against, coercing, intimidating, threatening, or interfering with an employee or other person because the person inquired about, disclosed, compared, or otherwise discussed the employee’s wage rate;
  • Prohibiting an employee from disclosing the employee’s wage rate; or
• Requiring an employee to sign a waiver or another document that prohibits the employee from disclosing wage information or denies the employee the rights to disclosure the employee’s wage rate information.

• Employers may not discriminate or retaliate against a prospective employee for failing to disclose his or her wage rate history. 
• Employers may not discharge, discriminate or retaliate against an employee for invoking this statute or assisting in the enforcement of this law. 
• Employers may not discharge, discipline, discriminate against or interfere with an employee because that employee inquired about, disclosed, compared, or otherwise discussed his or her wage rate.

• An employer shall make reasonable efforts to announce, post, or make known all opportunities for promotion to all current employees on the same day and prior to making a promotion decision.

• An employer shall disclose in each posting for each job opening: (i) the hourly/salary compensation or a range of the hourly/salary compensation, (ii) a description of the bonuses, commissions or other forms of compensation being offered, and (iii) a description of the benefits the employer is offering for the position, (iv) the application deadline, and (v) how to apply. 

Pay Transparency

• • Employers may not discharge, discipline, discriminate against or interfere with an employee because that employee inquired about, disclosed, compared, or otherwise discussed his or her wage rate.
  • Within 30 calendar days after a candidate is selected for a job opportunity and begins working, employers must provide the following information to employees with whom the employer intends the selected candidate to regularly work: (i) the name of the candidate selected for the job opportunity, (ii) the selected candidate’s former job title if selected while already employed by the employer, (iii) the selected candidate’s new job title, (iv) information on how 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.

Safe Harbor for Pay Evaluations

• A limited safe harbor allows employers to use evidence of a “thorough and comprehensive pay audit” with the “specific goal of identifying and remedying unlawful pay disparities” to avoid an award for liquidated (double) damages. Employers cannot rely on a pay audit to avoid an award for economic damages.

Other Key Provisions

• Job Posting Requirements: Employers are required to put application deadlines in their external job postings and internal promotional notices.  Within 30 days of ever hire or promotion company-wide, employers will be required to notify any Colorado employee with whom the selected candidate will regularly work of the new hire or promotion.
  • The announcement must include the name of the candidate, their former job title (if applicable), the new job title and information on how employees may demonstrate interest in similar job opportunities.  A newly hired employee may voluntarily request for this not to be done.    
  • Employers must make reasonable efforts to announce, post or otherwise make known each job opportunity to all Colorado employees on the same day and prior to the date on which the employer makes a selection decision.  Job opportunities must also include information on compensation, benefits the application deadlines and how to apply for the job opportunity. 
  • Links to information on a company website can satisfy this request.  More information can be found at https://cdle.colorado.gov/dlss/equal-pay-for-equal-work-act