Effective January 1, 2021: Colorado employers are prohibited from (1) seeking the wage history of a prospective employee; (2) relying on the wage history of a prospective employee to determine a wage rate; or (3) discriminating or retaliating against a prospective employee for failing to disclose wage history.
The “Equal Pay for Equal Work Act” also protects against wage discrimination based on sex and includes a pay transparency clause. The state went further, taking their new law to another level, including two requirements that no other state has yet included in similar laws. First, employers must make reasonable efforts to announce, post, or make known all opportunities for promotion to all current employees on the same calendar day. Additionally, employers must disclose the hourly or salary compensation (or range) and a general description of all benefits and other compensation offered in each posting.
Finally, the law provides that if employers are proactive and conduct self-evaluations of their compensation practices with the “specific goal of identifying and remedying unlawful pay disparities,” they may use that evidence to avoid liquidated damages.
While this law does not go into effect for a year and a half, Hire Image background screening specialists say that it’s a good time for Colorado employers to review their interview and application processes and forms to ensure they will be in compliance by the effective date.
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For more information about the growing trend of salary history bans, please visit our Resource Library.