Few Companies Penalized for Lack of Pay Transparency in Colorado

July 13, 2022
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​Colorado employers must disclose a salary range in job listings, and so far there have been few fines for noncompliance. Employers with workers in more than one state and employers who might hire Colorado residents to work remotely may find it tricky to follow the law, though.

We've gathered articles on the news from SHRM Online and other outlets.

Post Information

Employers covered by the Colorado Equal Pay for Equal Work Act must post wage and benefits information for all promotional opportunities and job openings, including remote jobs that can be performed anywhere, unless that work is specifically tied to a non-Colorado worksite.

(SHRM Online)

Law's Requirements

The law requires that all job postings include salary compensation information and a general description of all employee benefits, and the final regulations require only a general description of any bonuses, commissions or other forms of compensation.

(SHRM Online)

Few Fines

Only three employers have been fined for violating Colorado's wage transparency law. But there's still plenty of confusion. The law, which went into effect Jan. 1, 2021, was intended to help close the gender pay gap, whereby women earn less than men for the same job.

(Colorado Sun)

Record-Keeping Obligations

Colorado's law requires employers to keep records of job descriptions and wage rate history for every employee for the duration of their employment, plus two years after the end of their employment. It prohibits employers from:

  • Paying one employee a wage rate less than the rate paid to an employee of a different sex for similar work.
  • Asking about or relying on an applicant's salary history.
  • Restricting employees from discussing their compensation with other employees.

(Fisher Phillips)

Growing Trend

The trend toward greater pay transparency is not going anywhere. Moreover, the impact of one pay transparency law is likely to be felt well beyond its borders, especially as the number of remote jobs continues to increase.

Pay range disclosures have the potential to tighten up the hiring process itself. By posting the pay range for a job, employers may find that they waste less time screening applicants whose pay requirements are higher than the position warrants.

(SHRM Online)

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