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Colorado Issues Proposed Rules to Clarify Approaching Equal Pay Law

In preparation for Colorado’s Equal Pay for Equal Work Law going into effect on January 1, 2021, the Colorado Department of Labor and Employment recently published proposed Equal Pay Transparency Rules (“EPT Rules”).

Among other topics, the EPT Rules clarify the job posting requirement for Colorado employers to provide compensation information, a description of benefits, and promotion opportunities. Specifically, they state:

“Employers must include the following compensation and benefits information in each posting: (1) the hourly rate or salary compensation (or a range thereof) that the employer is offering for the position, including any bonuses, commissions, or other forms of compensation that are being offered for the job; and (2) a general description of all employment benefits the employer is offering for the position, including health care benefits; retirement benefits; any benefits permitting paid days off, including sick leave, parental leave, and paid time off or vacation benefits; as well as any other benefits that must be reported for federal tax purposes; but not benefits in the form of minor perks.”

With regard to a compensation range, the rules clarify that the range can extend from the lowest to the highest pay the employer reasonably believes could be paid for the particular job. However, an employer may pay more or less than the range, as long as what was posted was the employer’s good-faith and reasonable estimate at that time. For promotion opportunities, the employer must make “reasonable efforts” to announce or post all opportunities for promotion to all current employees in writing, with the job title, compensation and benefits, and how the employee can apply, at a minimum.

The rules are in a proposed status and open to public comment. They will be finalized prior to the law’s January 1st effective date.

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For more information about the growing trend of salary history bans, please visit our Resource Library.

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