Pay Equity Colorado (USA)

Basic Summary

Colorado's Equal Pay for Equal Work Act (SB19-085) is one of the strongest pay transparency laws in the U.S., requiring salary range disclosure in job postings, promotion opportunity notices, pay history bans, and record-keeping on compensation and job opportunities.

Key Legislation

Equal Pay for Equal Work Act (SB19-085)

Effective: January 1, 2021

Amended Colorado Revised Statutes § 8-5-101 et seq. to require:

• Salary disclosure in job postings
• Notification of promotional opportunities
• Pay transparency and record-keeping
• Prohibition on salary history inquiries

Salary Disclosure in Job Postings

Scope

All Colorado employers (no minimum employee threshold) must disclose in every job posting:

1. Hourly compensation or salary range:

   • Minimum and maximum hourly rate or salary
   • Range must reflect what employer "reasonably and genuinely" expects to pay

2. General description of benefits:

   • Health care, retirement, paid time off, etc.
   • Can be a summary or link to detailed benefits information

3. Other compensation:

   • Bonuses, commissions, or other forms of compensation (if applicable)

Job posting includes:

• Any solicitation for employees
• Postings by the employer or third parties (recruiters, staffing agencies)
• Internal and external postings

Covered Positions

Applies to positions that:

• Will be physically performed in Colorado, or
• Can be performed remotely from Colorado

Note: Employers hiring for fully remote roles must include salary info if the position can be performed from Colorado (even if the employee could be located anywhere).

Exemptions

Positions that:

• Cannot be performed in Colorado (e.g., in-person role in another state with no remote option)

Posting Requirements Detail

Acceptable formats:

• Job description itself
• Link to separate document (must be easily accessible)

Example compliant posting:

"Salary Range: $60,000 - $80,000 annually. Benefits include health insurance, 401(k) matching, and 15 days PTO. Eligible for annual performance bonus."

Notification of Promotional Opportunities

Requirement

Employers must notify all current employees of:

• Job openings (including promotional opportunities)
• Before making a hiring or promotion decision

Methods:

• Email distribution
• Posted in conspicuous location (physical or digital)
• Any method ensuring all employees are informed

Exemptions

Positions filled by:

• Recalled employees (layoff recalls)
• Transfers at employee request

Prohibition on Salary History Inquiries

Employers cannot:

• Ask about an applicant's age, date of birth, or compensation history
• Seek compensation history from current or former employers
• Rely on compensation history in determining what to offer

Exception: Applicant voluntarily discloses salary history without prompting.

Record-Keeping Requirements

Employers must maintain records for each job:

1. Job description: Duties, required qualifications
2. Wage rate history: Pay ranges, actual wages paid
3. Job opening announcements: How opportunities were posted/communicated
4. Promotion and transfer history: Who was promoted/transferred, when, and pay changes

Retention period: 2 years from the date each record is made.

Equal Pay for Equal Work

Standard

Employees performing substantially similar work (assessed by composite of skill, effort, and responsibility under similar working conditions) must receive equal pay regardless of sex.

Permissible pay differentials based on:

1. Seniority system
2. Merit system
3. Quantity or quality of production
4. Bona fide factor other than sex: Education, training, experience—if:
   • Related to the position
   • Consistent with business necessity
   • Not based on or perpetuating sex-based differential

Expanded protections: Also covers pay differentials based on race, national origin, and other protected classes under Colorado Anti-Discrimination Act.

Enforcement and Penalties

Division of Labor Standards and Statistics (DLSS)

Investigates complaints of violations.

Penalties

Civil penalties:

• Up to $10,000 per violation
• Each job posting, failure to notify, or record-keeping lapse can be a separate violation

Employee remedies:

• Back pay
• Liquidated damages (equal to back pay)
• Attorney's fees and costs
• Injunctive relief

Statute of limitations: 2 years (3 years for willful violations)

Best Practices for Employers

Job Posting Compliance

1. Develop salary ranges: Establish good-faith ranges for all positions before posting
2. Include benefits summary: Prepare standard benefits description or link
3. Audit job ads: Review all postings (by HR, recruiters, or hiring managers) for compliance
4. Train recruiters: Ensure third-party recruiters understand Colorado requirements

Promotion Notification

1. Centralized posting system: Use HRIS or intranet to post all openings to current employees
2. Timing: Post before external advertising or making offers
3. Documentation: Maintain proof of notification (email logs, posting screenshots)

Record-Keeping

1. Standardize job descriptions: Maintain up-to-date, detailed job descriptions for all roles
2. Track wage history: Log salary ranges and actual hires/promotions in HRIS
3. Retention policy: Implement 2-year retention for all required records
4. Audit readiness: Prepare for DLSS audits by organizing records systematically

Pay Equity

1. Conduct audits: Annually review pay by gender, race, and other protected characteristics within job families
2. Standardize criteria: Use objective, documented factors for all pay decisions
3. Remediate disparities: Adjust pay where differences cannot be justified

Remote Work Considerations

Key issue: Colorado law applies to any position that can be performed remotely from Colorado, even if:

• Employer is headquartered out-of-state
• Position is advertised as "remote anywhere"
• Employee could be located in any state

Employer options:

1. Comply with Colorado law for all remote postings
2. Exclude Colorado from eligibility (clearly state "this position is not available to Colorado residents")

Many employers have opted for option 1 to avoid excluding Colorado candidates.

Resources

• Colorado Division of Labor Standards and Statistics (DLSS): https://cdle.colorado.gov/dlss
• Equal Pay for Equal Work Act (SB19-085): https://leg.colorado.gov/bills/sb19-085
• Colorado Revised Statutes § 8-5-101 et seq.: https://leg.colorado.gov/colorado-revised-statutes
• Colorado Civil Rights Division: https://ccrd.colorado.gov

Compliance Calendar

Date	Action
Before posting any job	Determine salary range and benefits summary
Before filling any position	Notify all current employees of opportunity
Ongoing	Maintain job descriptions, wage records, and posting history for 2 years
Ongoing	Refrain from asking about salary history
Annual (recommended)	Conduct pay equity audit

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Disclaimer: This guide is for informational purposes only and does not constitute legal advice.