5 New Things to Know about Colorado’s Equal Pay Law

Colorado’s new Equal Pay for Equal Work Act will go into effect on January 1, 2021. As a quick reminder, the law prohibits employers from discriminating based on sex and gender identity and requires equal pay for equal work. We outlined the law and how to prepare for it in detail here, but there are some important updates and clarifications to know about before the new year rolls around.

To make sure you’re in compliance, it’s a good idea to take note of the following:

  • Job posting requirements, which need to include salary and benefits information, apply to all jobs that can be done in Colorado or for a Colorado-based employer that may be hiring a remote worker.
  • Colorado employees need to be informed of promotion opportunities within the company, even for roles that are not physically located in Colorado.
  • Promotions “in seat” must still be posted: for example, a worker being promoted from Customer Service Rep I to Customer Service Rep II. There is a limited exception for promotions that employees get automatically in their first year of work, if the first year includes a “trial period.”
  • There are some provisions for “confidential searches” that limit the posting requirements for promotions or jobs. But businesses must have a compelling reason to do a confidential search, such as replacing someone that doesn’t know they are going to be terminated.
  • Posting requirements can be met by posting the information on a company Intranet or HR portal, but all employees need to have access to such a system to be in compliance.

There may be additional developments with the Equal Pay law in the weeks and months to come, which is why it’s important to stay on top of, and stay compliant with, any changes.

To learn more about this law and other regulations, download the eGuide. For questions about how the Equal Pay law applies to your business, contact Obsidian HR at (720) 456-3590 or inquiry@obsidianhr.com.