Colorado: Updated Pay Transparency Requirements
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APPLIES TO All Employers with at least 1 Employee in CO |
EFFECTIVE January 1, 2024 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
Several amendments to Colorado’s Equal Pay for Equal Work Act (EPEWA) create additional requirements for employers. The Colorado Department of Labor and Employment (CDLE) issued final regulations and Interpretive Notice & Formal Opinion (INFO) #9A to clarify the amendments.
Job Opportunity Posting
Employers must announce, post, or otherwise make known a job opportunity to all Colorado employees on the same calendar day and prior to the date of a selection decision. A job opportunity is “a current or anticipated vacancy for which the employer is considering a candidate or candidates or interviewing a candidate or candidates or that the employer externally posts.” The job opportunity notice must be made available regardless of where the job is to be performed and regardless of whether a Colorado employee would qualify for the job opportunity. If the job opportunity is to be primarily performed or could be performed in Colorado, then the notice must include:
- the hourly rate or salary compensation (or a range thereof) that the employer is offering for the position;
- a general description of any bonuses, commissions, or other forms of compensation that are being offered for the job;
- a general description of all employment benefits the employer is offering for the position, including healthcare benefits, retirement benefits, any benefits permitting paid days off (including sick leave, parental leave, and paid time off or vacation benefits), and any other benefits that must be reported for federal tax purposes, but not benefits in the form of minor perks;
- the application deadline; and
- how to apply for the job opportunity.
The notice requirements can be linked elsewhere, like to a website. Reasonable methods can be used for employees to access the notice so long as employees can access it within their regular workplace or are told where to find it. The amendments maintain pre-existing exceptions to the job opportunity notice requirements for confidential replacements of current employees unaware of their separation.
Post-Selection Notice
Once an employer selects a candidate, they must provide notice to existing Colorado employees who will work with the candidate regularly. The notice must contain: (1) the name of the selected candidate; (2) the employee’s former job title (if applicable); (3) the new job title; and (4) information on how employees may demonstrate interest in similar job opportunities. These notices must be provided within 30 days after the selected candidate begins work. Notices can be combined for several selections at once. Employers do not have to provide a post-selection notice when disclosing a selected candidate’s name and/or prior job title if doing so would violate a law or if a selected candidate voluntarily requests to be exempted from the notice. Reasonable methods can be used for employees to access the notice so long as employees can access it within their regular workplace or are told where to find it.
Exceptions
Small Employers. Employers outside of Colorado with 15 or less remote Colorado employees only have to provide remote job opportunity notices. This requirement sunsets on July 1, 2029, at which point all job opportunities available company-wide must be included in job opportunity notices.
Career Development. Career progression or development promotions are excluded as job opportunities, so they do not trigger job opportunity or post-selection notice requirements. Separately, a career progression promotion has its own notice requirement. A career progression is “a regular or automatic movement from one position to another based on time in a specific role or other objective metrics.” Such notices must include the requirements for career progression, in addition to each position’s terms of compensation, benefits, full-time or part-time status, duties, and access to further advancement.
Geographic Limitations. All notices are to be provided to Colorado employees only. This is even if the opportunity or selected candidate is outside Colorado.
AINT Positions. Acting, interim, or temporary positions (AINT) do not require an immediate job opportunity notice where the hiring is not expected to be permanent, and the position was not held any time in the preceding 12 months by another AINT hire which did not have a job opportunity posting.
Action Items
- Review the final regulations here.
- Revise job postings to include application deadlines.
- Draft post-selection notice templates and determine distribution method.
- Review promotion categories to see if they qualify as a career development or career progression.
- Have appropriate personnel trained on the requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase