?The Colorado legislature recently passed Senate Bill 23-105, which amends Colorado’s Equal Pay for Equal Work Act, to clarify certain existing employer obligations and add new obligations. Gov. Jared Polis signed the bill into law, which will take effect on Jan. 1, 2024.
The law requires an employer to make reasonable efforts to “announce, post, or otherwise make known” job opportunities internally on the same calendar day as it posts job opportunities externally and, in all events, before the employer selects a candidate for the position.
When announcing a job opportunity, an employer must disclose (1) the hourly or salary compensation, or range thereof, (2) a general description of the benefits or other compensation applicable to the job opportunity, and (3) the date the application window will close.
If an employer is physically located outside of Colorado and has fewer than 15 employees in Colorado who all work remotely, then the employer is required to provide notice of only remote job opportunities, an obligation that expires on July 1, 2029.
Under the law, once an employer selects a candidate to fill a job opportunity, the employer must make reasonable efforts to announce to employees with whom the selected candidate is expected to work the candidate’s: (1) name; (2) former job title, if selected while already employed by the employer; and (3) new job title. Additionally, the employer must disclose information on how these employees may demonstrate interest in similar job opportunities in the future, including identifying individuals or departments to whom the employees can express interest in similar job opportunities. This announcement must be made within 30 days of that candidate beginning work in the position.
Moreover, for positions with career progression, an employer must disclose and make available to all eligible employees: (1) the requirements for career progression, and (2) each position’s terms of compensation, benefits, full-time or part-time status, duties, and access to further advancement.
The law provides for backpay as damages for any violation of the law, limited to a period of six years.
No later than July 1, 2024, the Colorado Division of Labor Standards and Statistics must promulgate regulations to implement the new amendments. To prepare for implementation, Colorado employers (as well as non-Colorado employers with remote workers in Colorado) should evaluate their external and internal job posting process to ensure compliance with the law and any forthcoming regulations.
Alex C. Weinstein is an attorney with Vedder Price in Chicago. Gaby M. Mercurio is an attorney with Vedder Price in Los Angeles. © 2023 Vedder Price. All rights reserved. Reprinted with permission via Lexology.
