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Colorado’s Pay Transparency Law Upheld

2021-06-23

Despite challenges from the business community Colorado’s Pay Transparency Law remains in effect

On January 1, 2021, the Colorado’s Equal Pay for Equal Work Act went into effect.  The Act is aimed at closing the pay gap among employees and requires employers, with operations or employees working in the state, to issue compensation ranges for all job positions, including internal promotions.  Employers failing to follow the requirements are subject to civil fines up to $10,000.

In December 2020, the Rocky Mountain Association of Recruiters filed a lawsuit claiming that the law’s pay transparency requirements were unconstitutional and unduly burdened employers.  The Association also argued the pay transparency regulations conflicted with the laws of other states and therefore burdened interstate commerce.  The judge disagreed and determined that the plaintiff failed to show any undue burden on employers and determined that the law if “reasonably related to the state’s public interest in reducing the gender-based wage gap.”

The foregoing has been prepared for the general information of clients and friends of Workplace Dynamics LLC and is not being represented as being all-inclusive or complete. It has been abridged from legislation, administrative ruling, agency directives, and other information provided by the government. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel.