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Colorado’s Equal Pay Transparency law, which went into effect in November 2023, is intended to decrease a wage discrepancy that is based on gender and other factors.

Equal Pay Transparency

In late 2023, legislators in Colorado passed two laws that will require employers to provide more transparency about the wage range of positions for which they are hiring. The Equal Pay Transparency (EPT) Rules and the Statement of Basis, Purpose, Specific Statutory Authority, and Findings went into effect on January 1, 2024. They are intended to reinforce the state’s Equal Pay For Equal Work Act, which went into effect in 2021.

The law says that the internal and external job advertisements employers post must include:

• The hourly rate or salary.
• A general description of bonuses or other types of compensation.
• A general description of employment benefits that are included with the position.
• Information about how to apply.

Definitions

The Statement of Basis document creates definitions for some terms employers in CO should be aware of, including:

Career Progression. This is a “regular or automatic promotion” that can occur for an employee without competition. Employers are obligated to inform eligible employees of any requirements for this progression, along with details about the pay, benefits, duties and more.

Career Development. This involves promotions which “reflect work performed or contributions already made by one specific employee.” Employers are not required to submit notices regarding career development position changes.

Temporary Positions

The EPT Rules document covers individuals who are “Acting, Interim or Temporary (AINT) hires. This is the first time wage transparency laws in Colorado have included individuals who hold these types of positions. It was added to help ensure organizations do not repeatedly hire the same person for a temporary position to avoid creating a job posting with the salary range.

There is one exception to this rule. It says that if an employer hired someone for an AINT position that is more than 7 and up to 9 months long, and the worker leaves before the job is complete, then the employer may hire a replacement to finish that term without creating a job posting.

Establishing Fair, Transparent Policies

Various laws in the U.S. require employers to disclose the pay range for open positions. This is done to help establish fair compensation for people who do similar work under similar circumstances. These laws also encourage employers to create fair, transparent policies for everyone.

When every applicant and employee is treated the same, it establishes a level of trust and encourages top talent to choose and stick with your business. This mindset extends from job applications to the screening process.

It is important for employers to create consistent policies, such always screening at the same time during the hiring cycle and running the same type of background check packages for comparable positions. Backgrounds Online can help. Our experienced team will work with you to customize screening packages that are perfectly suited to your specific needs, applicable laws and industry regulations.

Need Employment Background Checks?

If your organization is considering applicants, contractors, volunteers or promotions for current employees, please contact us. We have more than 20 years of experience as a leader in the employment background check industry. Our team is highly trained and prepared to address all of your screening challenges. We are available to assist you Monday through Friday from 5am to 6pm PT.