Colorado Pay Transparency Law: Equal Pay for Equal Work Act 2024

The Colorado Equal Pay for Equal Work Act (EPEWA) is one of the nation’s most comprehensive pay transparency laws. It aims to address wage gaps and ensure fair compensation across all sectors. This law, effective in 2021 and expanded in 2024, continues to promote pay equity and transparency in the workplace.

Colorado businesses must comply with these updated regulations to avoid penalties and foster a culture of fairness. This guide explains how the law works, what employers need to know, and how Mosey can assist with state compliance.

What Is the Colorado Pay Transparency Law?

The Colorado Pay Transparency Law is part of the broader Equal Pay for Equal Work Act (EPEWA), enacted in 2021 and updated with new requirements for 2024. The law’s primary goal is to eliminate pay discrimination by requiring employers to be transparent about compensation practices. Under this law, Colorado employers are subject to new requirements.

Employers must disclose pay ranges in job postings, notify employees of promotional opportunities, and provide a clear framework for pay differences between employees who do substantially similar work.

The law is intended to promote equity by providing employees and job seekers with the information they need to make informed decisions and address wage gaps related to gender, race, and other protected statuses.

Colorado has positioned itself as a leader in pushing for wage equity, and this law reflects the state’s continued commitment to ensuring all workers are fairly compensated for their contributions in the workplace.

How Does the Colorado Pay Transparency Law Work?

The Colorado Pay Transparency Law applies to all employers with at least one employee in Colorado, regardless of the company’s size or industry. Organizations must provide detailed information when advertising an available position and maintain more transparency with employees about their wages.

Job Postings Must Include Pay Ranges

All job postings, whether internal or external, must include the salary or hourly wage for the position. This applies to remote roles that a Colorado resident can perform.

Employers cannot use vague or nonspecific terms like “competitive pay” or “depending on experience” — they must provide a specific range. This transparency ensures applicants know what to expect regarding compensation and helps avoid wage disparities.

Include Information on Benefits

Job postings must also disclose benefits that are part of the compensation package, such as health insurance, retirement plans, bonuses, and paid time off. The purpose is to ensure potential employees fully understand their total compensation package, not just the base salary.

Promotion and Advancement Notifications

Employers are required to notify current employees of any opportunities for promotion. This notice must be given to all employees on the same day and should provide enough information for employees to apply for the position.

By ensuring everyone has access to the same promotional opportunities, the law seeks to address internal wage disparities and reduce favoritism. The goal is to encourage Colorado employers to promote from within, providing greater opportunities to qualified internal candidates.

Employees should have the information necessary to apply for a position within the company even if they weren’t specifically tapped for a promotion.

Prohibition Against Wage Secrecy

The law prohibits employers from retaliating against employees who discuss their wages or inquire about the pay of their coworkers. This element of wage transparency encourages open conversations about compensation and helps employees identify pay disparities that might otherwise go unnoticed.

Application Deadlines Must Be Defined

If an employer intends to remove a job posting on a certain date, they’re required to include an application deadline or closing date within the posting. However, there may be cases where hiring is evergreen, and evergreen positions are excluded from this provision.

Post Selection Notifications

After selecting a candidate to fill a role, employers must inform their intended workplace collaborators about a new hire. Employers must provide a notice that includes the candidate’s name, title at their former job, title within their new role, and information about any similar opportunities within the company.

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How Does the Colorado Pay Transparency Law Interact With Federal Pay Laws?

The Colorado Pay Transparency Law works alongside federal laws, particularly the Equal Pay Act of 1963 and Title VII of the Civil Rights Act. These federal laws prohibit pay discrimination based on sex, race, color, religion, and national origin.

However, Colorado laws go further by requiring proactive transparency, while federal laws focus more on prohibiting discriminatory practices.

Differences Between Federal and State Laws

Federal law does not require employers to disclose salary ranges or provide notices for promotional opportunities. Colorado’s laws add an extra layer of transparency by mandating disclosures that federal laws do not currently require. Colorado is setting a higher standard for pay equity by making it easier to identify and address pay disparities.

Differences for Multi-State Employers

Compliance with Colorado laws can be tricky for employers that operate in multiple states. If the job can be performed remotely from Colorado, the employer must comply with the state’s salary transparency requirements, even if their headquarters or other employees are elsewhere.

That means multi-state employers may need to adjust their job postings, handbooks, and internal processes to meet the requirements of Colorado law.

How To Comply With the Colorado Pay Transparency Law

Compliance will require employers to change their hiring, promotion, and wage determination processes. Employers must be more candid than they may have been before. You may also need to adjust your internal processes to accommodate wage transparency.

Establish Clear Compensation Structures

One of the first steps is establishing clear compensation structures. Employers should create salary ranges for each position based on objective factors like experience, skills, and market rates. A well-defined pay structure helps ensure consistency and fairness across the company, making it easier to justify pay differences.

Update Job Postings

Employers must update their job postings to include specific pay ranges and benefits. This applies to all postings, whether for external applicants or internal promotions.

Compliance automation tools and services can help ensure the correct information is included in every job posting, streamline the process, and avoid mistakes. If you make job postings from templates, update your templates now.

Notify Employees of Promotion Opportunities

Employers should develop a formal communication process to comply with the law’s requirement that employees be notified of promotional opportunities. For example, companies can use internal email blasts or job boards to ensure all employees are simultaneously informed about available roles.

Document Everything

Employers should maintain documentation related to pay decisions, job postings, and promotional notifications. Clear records of compliance efforts can be crucial in the event of an audit or legal dispute. This includes keeping copies of job postings, promotions-related emails, and documentation determining pay ranges.

Maintain Compliance With Mosey

Equal pay laws can vary from state to state, which often poses a challenge for multistate employers. Mosey’s multi-state compliance management platform allows employers to track state and local requirements while providing streamlined solutions to meet their obligations.

Schedule a demo with Mosey to learn how we can make compliance simple.

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