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At the end of 2020, Colorado adopted the Equal Pay for Equal Work Act or EPEWA. What does this mean for Colorado businesses, and how will it affect hiring moving forward? There are a few key aspects every company should be aware of based on this act. Let’s take a closer look at what the future of employment looks like in Colorado.

Multi-State Employers

One of the biggest concerns about the bills’ original language was that it indicated multistate employers needed to comply even if they only had one employee working within the state of Colorado. Initially, this would apply to every job the company posted, even if it were not based in the state. Now, it does not apply to employees outside of the state of Colorado or jobs performed elsewhere.

Promotional Opportunities

The EPEWA also defines promotional opportunities as “a vacancy in an existing or new position that could be considered a promotion for one or more employee(s) in terms of compensation, benefits, status, duties or access to further advancement.” Companies need to make these opportunities available to all employees but can establish qualifications for hiring.

Job Postings

The act requires Colorado employers to provide the salary in all job listings as well as a general description of employee benefits. Job postings must also include a general description of bonuses, commissions, and other forms of compensation. Conceivably this is to prevent employers from using a candidate’s previous salary to determine the pay rate offered.

Complaint Filings

These new regulations went into effect on January 1st of 2021. Colorado employers now need to understand the regulations, and the Colorado Division of Labor Standards and Statistics will investigate any complaints brought to them under the EPEWA. However, it’s good to know that they will not accept complaints of violations that occurred before the new year.

Are you looking for more information on the EPEWA and other local or federal legislation that could affect your business?

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