December 22, 2023

Colorado Releases Equal Pay Transparency Final Rule

The Colorado Department of Labor Employment (CDLE) has released its final Equal Pay Transparency (EPT) Rules (Rules) and Statement of Basis, Purpose, Specific Statutory Authority, and Findings, clarifying the state’s Equal Pay for Equal Work Act (Act). Largely unchanged from its proposed version, the Rules become effective on January 1, 2024.

Under the Act, Colorado employers have an obligation to announce, post, or otherwise make known all job opportunities. Below are a few key points from the final Rules:

  1. Career Development: Career development is defined as a “change to an employee’s terms of compensation, benefits, full-time or part-time status, duties, or access to further advancement in order to update the employee’s job title or compensate the employee to reflect work performed or contributions already made by the employee.” Work performed or existing contributions are to be part of the employee’s existing job and not within a position with a current or anticipated vacancy. Notices are not required for career development position changes.
  2. Career Progression: For a career progression, employers must disclose and make available to all eligible employees the requirements for career progression, along the position’s terms of compensation, benefits, full-time or part-time status, duties, and access to further advancement. Job changes due to career progressions are not included in the definition of “job opportunity.”
  3. Application Deadlines: Two exceptions to the existing deadline requirement are provided as follows:
  • If there is no deadline because the employer accepts applications on an ongoing basis, the posting must say so, and a deadline is not required.
  • A deadline may be extended so long as: 1) the original deadline was a good-faith expectation or estimate of what the deadline would be; and 2) the posting is promptly updated when the deadline is extended.
  1. AINT Hires: Notice requirement for Acting, Interim, or Temporary (AINT) positions lasting up to nine months where:
  • The hiring is not expected to be permanent and, if the hire may become permanent, the required job opportunity posting must be made in time for employees to apply for the permanent position; and
  • The same or substantially similar position was not held any time in at least seven of the preceding 12 months by another AINT hire for which there was no job opportunity posting (unless the new AINT hire is to serve out the initial nine-month term of a prior AINT hire).
  1. Post-Selection Notice to Employees: Post-selection notices to employees with whom the selected candidate will regularly work are required. (i.e., employees who, as part of their job responsibilities, either: 1) collaborate or communicate about their work at least monthly; or 2) have a reporting relationship). While not required, employers may provide notice “to a broader range of, or all, employees.”
  2. Geographic Limits: Notice requirements for pre-selection, post-selection, and career progression don’t apply to employees who work entirely outside of Colorado. Compensation and benefits disclosure requirements do not apply to postings for jobs to be performed entirely outside Colorado or those physically located entirely outside Colorado.