The days of keeping salaries a secret are coming to an end. Today’s workforce, especially younger generations, is increasingly vocal about wanting transparency, equity, and fairness in the workplace. They’re not just asking for it, they’re expecting it.
To address this, states across the U.S. have been rolling out pay transparency laws. Among the leaders is the state of Colorado. With its legislation, Colorado has set a precedent for pay transparency and wage equity, changing how employers approach everything from job postings to compensation reviews.
So, if you're in Human Resources (HR) and managing employees in Colorado, or even just hiring remote talent there, it’s critical to understand the details and nuances of Colorado pay transparency laws. It’s important not only to stay compliant, but to build trust, attract and retain top talent, and create a more equitable workplace culture.
Here are three key takeaways you’ll learn in this article:
So, what is the state’s law? Colorado’s pay transparency law is officially known as the Equal Pay for Equal Work Act (EPEWA), which originally took effect on January 1, 2021. Since then, it has undergone several clarifications and updates, with the most recent updates introduced via Senate Bill 23-105, which took effect on January 1, 2024.
The intent behind the law is straightforward but powerful: to eliminate gender-based pay disparities and bring clarity to the hiring and promotion processes. The key goals of the law include:
This law applies to any employer with at least one employee working in Colorado, including remote positions that can be performed within the state, even if the company is based elsewhere. In other words, if you post a job online and a Coloradan can apply, then you’re likely subject to this law.
Notably, updates in 2024 have made a few allowances for small out-of-state employers such as those with fewer than 15 remote Colorado workers may be exempt from some of the internal job posting requirements but must still disclose compensation.
Under this law, there are some main requirements that employers need to follow, including:
Under Colorado’s law, employers are required to be upfront about pay at several key stages of the employment process.
Job Postings Must Include:
These disclosures apply to all job postings, including internal promotions or transfers.
Also, even if a job is listed as fully remote, if it can be performed from Colorado, the same pay disclosure rules apply.
One of the strongest components of the Colorado law is its position on salary history.
Employers cannot:
This provision helps prevent historical pay discrimination from following candidates from one job to the next.
Employees in Colorado have the right to:
These rights are part of a shift toward wage transparency, aiming to give workers more leverage and insight into their earnings.
The law also includes documentation requirements. Employers must:
A new provision under SB 23-105 requires employers to notify employees who were not selected for a promotion within 30 days, adding another layer of transparency to internal hiring decisions. Failure to maintain proper records can lead to legal issues. In fact, if you don’t have the records, courts may assume the missing documents would have favored the employee’s claim.
Another change under SB 23-105 is how employers must handle internal job opportunity notifications. Employers must make reasonable efforts to announce, post, or otherwise make known each “job opportunity” to all Colorado employees on the same calendar day and before a selection decision
Colorado has issued detailed guidance on this. Here is a quick overview:
First off, what is a job opportunity?
CO’s guidance (INFO #9A - the interpretive notice and opinion for the "Transparency in Pay and Job Opportunities" portion of the state’s Equal Pay for Equal Work act. It gives guidance for employers to handle transparency requirements as well as how to comply with the state's laws) explains that a “job opportunity”:
According to CO’s guidance (INFO #9A,) any of the following are a “vacancy”:
The guidance reiterates that employers must provide notices to all Colorado employees and cannot limit the notice to certain employees. INFO #9A provides an example: If a job opportunity for a sales agent becomes available, all employees must receive notice even if most of the employees are in higher-paid positions and are not likely to be interested in the open role.
Employers must make reasonable efforts to notify all Colorado employees of a job opportunity on the same day, and before a selection is made.
According to the guidance, a “job opportunity” exists anytime you’re considering filling a vacant or newly created role, whether you’re promoting someone or opening a new position.
Not all promotions trigger this notice requirement.
Career progression opportunities, like automatic annual promotions (e.g., from Analyst I to Analyst II), are exempt if:
But, if there's any subjectivity involved, like performance reviews or management approval, then the promotion must be treated as a standard job opportunity and noticed accordingly.
Even when exempt, career progression still requires its own form of written notice to eligible employees, delivered shortly after the employee enters the new position.
Acting, Interim or Temporary Positions and Confidential replacements are also exempt from “job opportunity” notice requirements.
Employers with no physical presence in Colorado and fewer than 15 remote employees in Colorado are exempt from the job opportunity notice requirements, but they still must disclose compensation and benefits, as well as when and how to apply, in covered job postings.
These are also exempt from job opportunity notices. They're promotions based on the work an employee has already done, rather than a competitive process. For example, a cashier who gradually takes on the duties of a head cashier may be reclassified without formal notice, unless a vacancy prompts the change, in which case full notice is required.
Generally, all employees must be notified of job opportunities on the same day. However, INFO #9A states that there is no prohibition against notifying certain employees in advance of the general notice (e.g., if an employer is assessing a specific individual’s interest in a promotion before notifying other employees of the job opportunity).
Once a job has been filled, employers must notify Colorado employees who work regularly with the promoted or hired individual.
There’s no official format, but here’s a simple example:
Ali C. has been promoted to Analyst IV from Analyst III. Any employee interested in similar opportunities in the future should email Human Resources at HR@company.com.
Employees can request to remove their names and former titles from these notices in certain cases, providing a small privacy safeguard.
Employers must maintain:
Failure to keep proper records can result in courts assuming missing info would have favored the employee in a dispute.
So, what happens if an employer doesn’t comply?
The penalties can be steep and are meant to make sure that the law is taken seriously:
Given how visible pay postings have become, especially on public platforms like LinkedIn and Indeed, non-compliance is becoming hard to hide and easy to report.
From an HR standpoint, this law doesn’t just require a few extra lines in a job posting, it demands a cultural shift. Let’s walk through how HR teams can navigate the Colorado pay transparency law smoothly and effectively.
Compliance can be complex, but you don’t have to navigate it alone.
Here are some next steps and resources to guide your team:
Colorado’s pay transparency law is more than a legal requirement, it’s an opportunity to build and cultivate trust, attract top-tier talent, and lead your organization into a more equitable future.
Compliance may feel like a heavy lift at first, but the long-term payoff includes better retention, stronger employer branding, and fewer legal headaches.
As HR, your role is front and center in driving this transformation. Don’t wait until you’re audited or faced with a complaint. Take action now to align your practices with the law and with the values that today’s workforce expects.
If you’re unsure where to begin or need support, reach out to the experts at OutSolve. We’re here to help you build a workplace where pay transparency is part of the culture.