In 2021, Colorado adopted the Equal Pay Act (C.R.S. s. 8-5-101, et seq.), a law aimed at diminishing gender pay disparities. The Ensure Equal Pay for Equal Work Act of 2024 amends this statute to include stronger requirements mostly connecting to job posting. Human resources and payroll companies should pay close attention, as their business clients may be leaning on them to assist with compliance.
The original 2021 Act mandates that employers should not engage in sex-based wage discrimination for substantially similar work. That is, employers should not pay people who identify as different genders different amounts for the same work. Only specific enumerated reasons could justify such a disparity in pay, including seniority, merit, job nature, geographic location, necessary travel, or that the two employees are not actually doing substantially similar work. The Act also prohibits wage history inquiries, retaliation, and impedes wage secrecy among employees. Violations could lead to severe repercussions including double damages. All of this remains true.
The 2024 Ensure Act focuses on changes to job posting requirements. The idea, apparently, is that the 2021 Act addressed pay inequality, and the 2024 Act is intended to address opportunity inequality. The original 2021 Act had some requirements concerning posting promotion opportunities to current employees, but those have now been bolstered.
The Ensure Act broadens the scope of mandatory job postings. Now, employers must disclose not just promotion opportunities but all job openings. This includes detailed information about the job, such as salary or hourly range, bonuses, commissions, benefits, and application deadlines. The employer should undertake reasonable and good faith efforts to ensure all existing employees get the information. In the case of remote workers, for example, this might require sending out notice in a variety of different ways; posting in the break room may not be sufficient.
The information in the posting should also be provided in good faith. The salary range, for example, should be a range that the company honestly believes and would pay for the position based on criteria such as experience.
Colorado generally considers its employment laws applicable to any business employing Colorado residents, and this law is no exception. It specifically notes that it applies to out of state businesses that employ remote workers in Colorado. There is a very tiny exception, though, as the law appears to sunset in 2029 for out of state businesses with less than fifteen (15) employees.
If you have inquiries about the Ensure Equal Pay for Equal Work Act, or suspect your employer may be infringing upon this legislation, we’re here to offer guidance and support.
Contact Underhill Law for expert assistance from an experienced Denver Business Attorney. We’re here to help you navigate your legal needs with confidence.