What is the Equal Pay for Equal Work Act?

Governor Polis has signed the Equal Pay for Equal Work Act, a new law governing pay equity in Colorado.

  • The law forbids discrimination between genders on the basis of pay and includes a newly created right for employees who have suffered such discrimination to sue their employer. The law also requires that companies post all job openings internally and list a salary range for the position, and forbids employers from asking about salary history.
  • The new law permits employees who have been discriminated against to recover back pay for a period of up to three years, and further awards additional damages equal to the amount of back pay owed unless the employer can demonstrate that they acted in good faith. The law does include a provision stating that any Pay Equity Analysis that an employer undertakes within two years of a lawsuit will be taken as evidence of the employer’s good faith.
  • The law does not take effect until January 2021, but employers would be wise to start preparing now.

What steps can employers take now?

Consider conducting a comprehensive Pay Equity Analysis.

A comprehensive Pay Equity Analysis can help an employer to identify their vulnerabilities under the law and address them now, and can potentially protect them from additional damages in the event of a lawsuit.

To learn more about conducting a Pay Equity Analysis, please contact our Pay Equity Department at 303.223.5670, or payequity@employerscouncil.org.