Colorado Equal Pay for Equal Work Act Compliance

Overview of the Colorado Equal Pay Act

Colorado's Equal Pay for Equal Work Act (EPEWA), effective January 1, 2021, with amendments effective January 1, 2024, is one of the most expansive pay transparency laws in the nation. The law prohibits employers from paying employees of different sexes differently for substantially similar work and imposes affirmative obligations related to job postings and internal promotions.

The law applies to all employers with at least one employee in Colorado, and its posting requirements extend to remote positions that could be performed from Colorado.

Job Posting Requirements

Employers must include compensation information in all job postings for positions that will be performed, at least in part, in Colorado. This includes the hourly rate or salary range the employer genuinely expects to pay for the position, along with a general description of all benefits and other compensation offered. The salary range must reflect the actual range the employer intends to pay, not an unreasonably broad range.

The 2024 amendments clarified that employers with fewer than 15 employees who are posting for remote work that could be done anywhere need not include compensation in job postings directed to out-of-state applicants, though other requirements still apply.

Internal Promotion and Transfer Notices

Employers must make reasonable efforts to announce all promotion opportunities and job openings to current employees before making a decision. The notice must include the pay rate or pay range, benefits, and other compensation for the position. This requirement ensures that existing employees have the opportunity to apply for advancement.

If an employer selects a candidate for a promotion without posting the opportunity, the employer must notify all employees of the selected candidate within 30 calendar days after the decision, including the criteria used and how the selected candidate met those criteria.

Recordkeeping and Anti-Retaliation

Employers must maintain records of job descriptions and wage rate histories for each employee for the duration of employment plus two years. These records must include the job title, the wage rate, and any compensation changes. Employers may not retaliate against employees who inquire about, discuss, or disclose their wages or the wages of others, invoke the EPEWA, or assist in any investigation under the act.

Employees who believe they have been subject to a pay disparity may file a complaint with the Colorado Department of Labor and Employment (CDLE) within two years of the alleged violation, or three years for willful violations.

Practical Compliance Strategies

Employers should conduct internal pay equity audits to identify and correct any unexplained pay disparities. Developing standardized compensation structures tied to objective criteria such as experience, education, and performance helps defend against pay equity claims. Reviewing all job postings for compliance and training hiring managers on posting requirements are essential steps. Multi-state employers should coordinate with legal counsel to ensure their national job postings meet Colorado's requirements.