Colorado Updates, Clarifies Official Pay Transparency Guidance
Months after first releasing pay transparency guidance, the Colorado Department of Labor and Employment (CDLE) has issued an update.
CDLE issued final Equal Pay Transparency (EPT) Rules in November 2020. And, in December 2020, it released Interpretive Notice & Formal Opinions (INFO) #9, which clarified how CDLE will interpret the Rules.
Since then, employers have been navigating their requirements and CDLE has begun compliance investigations. All the while, both employers and CDLE are learning more.
As a result of its investigations, CDLE updated INFO #9 on July 21, 2021. This update clarifies how CDLE will apply and interpret the EPT Rules. Much of the new INFO #9 is unchanged, but it does provide additional clarity on five specific areas:
What is a “job posting”? A job posting is any written or printed communication (whether electronic or hard copy) that the employer has a specific job or jobs available or is accepting job applications for a particular position or positions. Employers need not include EPT pay and benefits disclosures with a general “Help Wanted” sign.
Which job postings must comply? All job postings must include EPT pay and benefits disclosures, unless the employer ties the role to a specific, non-Colorado worksite. Put differently, all remote roles must comply.
What salary range information must an employer include? A salary range should extend from the lowest to the highest pay the employer believes it might pay for the particular job, depending on circumstances, including employee qualifications, employer finances, and other operational considerations. Ranges with open ends do not comply: such as “30,000 and up” (with no top of the range) or “up to $60,000” (with no bottom of the range).
What benefits must an employer disclose? An employer must describe healthcare and retirement benefits, paid days off, and any tax-reportable benefits. It may not rely on an open-ended phrase, such as “etc.” or “and more,” to meet this requirement.
What are the procedures for investigations? INFO #9 adds compliant investigation procedures but permits a directed investigation where a complainant fails to meet these procedures.
Signaling it is a work in progress, CDLE is releasing new guidance as it determines clarifications are appropriate.