Because if the gap is that big they probably dont need to employ that person. An aggrieved person may bring a civil action in district court to pursue remedies specified in the act. 5 min read. Effective January 1, 2021, Part 2 of the Equal Pay for Equal Work Act, C.R.S. Colorado's Equal Pay for Equal Work Act ("EPEWA" or the "Act") went into effect on January 1, 2021. Employers operating, even on a limited basis, in Colorado should be aware of Colorados recentwage disparity and discrimination bill, which takes effect in 2021 and imposes widespread requirements related to record-keeping, disclosure, and transparency. 24-34-401 (2016). Employers operating, even on a limited basis, in Colorado should be aware of Colorado's recent wage disparity and discrimination bill, which takes effect in 2021 and imposes widespread requirements related to record-keeping, disclosure, and transparency. Therefore, if any vacancy arises that could be considered a promotion for any person employed by the employer, the employer must make reasonable efforts to announce it to all Colorado-based employees. All Rights Reserved. There are several components to Colorados Equal Pay Act. The law is designed to reduce the compensation gap that exists based on sex or gender identity, or sex or gender identity plus another protected status, between workers doing substantially similar work. Those cases have not been publicly disclosed yet, but will be, according to the division. Throughout 2021, members of the Provost's Office, the Office of Data Analytics, the deans, Human Resources, and campus financial units worked together to identify protected class gender and race and ethnicity salary inequities under the Colorado Equal Pay for Equal Work Act law's provisions. Recent FTC Enforcement Action Merits Cyber Insurance Coverage Review, Two Ways to Redefine & Achieve CRM Success. Discharging, disciplining, discriminating against, or otherwise interfering with an employee for inquiring about, disclosing, or discussing the employee's wage rate. 2023 Fisher & Phillips LLP. Whats Working is a Colorado Sun column about surviving in todays economy. There are so many bottomline benefits to transparency, especially in terms of attracting candidates and retaining talent. Federal law and equal pay laws by state aim to protect against discrimination in the workplace. Employers must make reasonable efforts to announce promotional opportunities to all Colorado employees prior to making a promotion decision. Some listings shared no wages. Other states left it up to job applicants to request salaries so the information was not widely known. filed a lawsuit in the U.S. District Court for the District of Colorado against the Colorado Department of Labor and . Its too soon. Effective January 1, 2021, this act amends Colorado law and provides new wage discrimination and employer provisions that differ from federal law and other state equal pay laws. Two studies conducted in university settings found the salaries of women faculty members increased following the pay-transparency intervention. The act allows exceptions to the prohibition against a wage differential based on sex if the employer demonstrates that a wage differential is not based on wage rate history and is based upon one or more of the following factors, so long as the employer applies the factors reasonably and they account for the entire wage rate differential: The act requires an employer to announce to all employees employment advancement opportunities and job openings and the pay range for the openings. The Wall Street Journal headlined its latest Bureau of Economic Analysis story succinctly: Growth was less than advertised, better than feared. The U.S. economy grew 2.9% in the fourth quarter, thanks to consumers spending more on health care, housing and utilities. And its not always questions about Colorados law, but similar legislation in other states. A real practical problem here is that unfortunately, in my opinion, a lot of these laws werent fully thought out or well written and theres unintended consequences. Monigle paid the $8,000 fine and unwittingly became the first company to do so as part of the Colorado Equal Pay for Equal Work Act. An employer can be sued for changing the schedule (without) a two-week advance notice, Furman said. So more work to be done on this bill. 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Phone: 303-318-8000, About UsStakeholdersWARN ListingsAccessibility StatementCareers at CDLEEqual OpportunityOpen RecordsPerformance Plans, Social Media Comment PolicySecurity StatementPrivacy PolicyLegal NoticesLinking Policy. Lets promote them and give them more responsibility and making that decision without ever posting it. Now be transparent about that. I had a company tell me, Put $56 to $100 per hour, but if its a really good candidate, were willing to go up to $150. So I said, Lets put $150 because the very first question (companies) ask is where do you want to be salarywise? If you shoot for $70, youre never going to see that $150, Jones said. The CDLE final rules require employers to provide a general description of any bonuses, commissions, or other forms of compensation offered for the job. And a few years later, now we have a different labor market, a tighter labor market where employers are starting to provide value ranges voluntarily even if they arent in a state with a law because they know it helps attract candidates.. Connecticut, Maryland, Nevada and Rhode Island have implemented laws similar to Colorado but they dont require salaries to be listed. Contact HR 8-5-101 et seq. The Equal Pay for Equal Work Act, signed into law on May 22, 2019, endeavors to close those gaps, which are reported in the act's legislative declaration. Jones suggests auditing their own wages. >> Details, New fund for unemployed and undocumented Remember when lawmakers approved a bill last year to use federal relief to pay off that huge federal unemployment loan debt? But another measure of Colorados Equal Pay law is the impact in the United States, said Louise Myrland, vice president of programs at The Womens Foundation of Colorado. Providing for economic damages in the event of a violation, including liquidated damages. The law, which went into effect Jan. 1, 2021, was intended to help close the gender pay gap where women earn less than men for the same job. First Offshore Wind Energy Lease Sales in the Gulf of Mexico, Telephone and Texting Compliance News: Litigation Update February 2023. But there was also confusion among local employers about employee promotions and whether they had to advertise the new role to outsiders. Read the archive, ask a question at cosun.co/heyww and dont miss the next one by signing up at coloradosun.com/getww. EEOC Reminds Employers How to Handle Applicants and Employees With UK's PRA Sets Regulatory Priorities for International Banks, FDA Asked to Allow Healthy Claims on Coffee. Criminal Referrals and OSHA Violations, Part III: Industry Standards Oregon House Revenue Committee Set to Hear More About Pro-Taxpayer Buying or Selling a Small Business Government Contractor? Retaliating against an applicant who fails to disclose their wage history. FMLA Developments Regarding Telework and Retaliation Claims You Should Know About. The Act has the potential to impact employers nationwide, as its provisions cover all employers with at least one Colorado employee, and certain disclosures are required whether the relevant position is based in Colorado or another location. In May of 2019, Colorado Governor Jared Polis signed the Equal Pay for Equal Work Act into law. UCB 565 Most employers want to make sure that theyre properly paying people and theres no pay disparity, Lennon said. Senate Bill 85, called the "Equal Pay For Equal Work Act," was signed by Polis on Wednesday. 8-5-101 et seq. Some out-of-state employers dont like it, Growth was less than advertised, better than feared, Whats Working: Colorados unemployment rate dropped, but so did the number of people in the workforce, Whats Working: How Colorados high egg and energy prices mesh with its slowing inflation. Equal Pay Act Lawsuits on the Rise Over the past several years, a number of class action lawsuits have been filed by women who say they're getting paid less for performing the same work as their male counterparts - and these lawsuits show no sign of slowing down. Will the U.S. Supreme Court Make Marijuana Legal? An already contentious one is House Bill 1118, the Fair Workweek Employment Standards bill. Sherman & Howard, one of Denvers oldest law firms, has seen inquiries taper off, but were still getting calls on a daily basis, said Beth Ann Lennon, an attorney who advises multiple international and national employers on all aspects of labor issues. The impact of these new policies isnt yet known because the laws are young. With respect to jobs tied to a location outside of Colorado, the employer is not required to include the compensation for the position. Colorado: 3.3% Will campus HR be looking to make sure that employees pay is at least at the minimum pay range? Arizona Gets to Keep Its State-Operated Workplace Safety and Health Manufacturers Legal Considerations for Staffing Reductions, PCAOB Enforcement Activity Up Sharply in 2022. EC Appeals European General Court Decision Annulling the Harmonized Weekly Bankruptcy Alert February 28, 2023. The new law will allow individuals who think they're facing gender-based pay discrimination to sue their employers. The act requires an employer to announce to all employees employment advancement opportunities and job openings and the pay range for the openings. The Equal Pay Act (EPA) is a federal employment law that prohibits sex-based compensation discrimination and mandates that men and women in the same workplace doing substantially equal jobs be given equal pay. Effective Date: January 1, 2021; Some attornies call this the strictest of Equal Pay laws in the U.S. Impact on Job Descriptions. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. Become a Sun member at coloradosun.com/join, Tamara writes about businesses, technology and the local economy for The Colorado Sun. The Basics of Californias Outside Salesperson Exemption. 1. May 28, 2019. Federal Communications Commission to Consider Rules and Proposals to Whats the Standard? But even California is now working on revamping its law. Join the fun and support good journalism. The National Law Review is a free to use, no-log in database of legal and business articles. * Amendments passed in committee are not incorporated into the measure unless adopted by the full House or Senate. With the May 2019 signing of the Equal Pay for Equal Work Act ("Equal Pay Act") that goes into effect on January 1, 2021, Colorado joined a growing list of states enacting laws to level the playing field when it comes to pay gaps. EPEWA went into effect January 1, 2021. Rhode Islands law goes into effect in January. it was not until the federal "Equal Pay Act of 1963", 29 U.S.C. The Division investigates complaints against employers concerning transparency in pay and employment opportunities. All staff position descriptions are archived to OnBase centrally, so departments don't need to maintain those. The Act requires employers to include the hourly rate or salary compensation (or a range thereof) the employer is offering for the position. The Equal Pay for Equal Work Act went into effect on January 1st, 2021. In 2019, Colorado passed SB19-085 or the Equal Pay for Equal Work Act (EPEWA). 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A Colorado Equal-Pay Law Could Change Employment Everywhere - The Atlantic Holy Week Politics Companies Want Remote Workers in All States but 1 Businesses such as Nike and Oracle are happy to. The main provisions of the EPEWA are summarized below. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to email a link to a friend (Opens in new window), How Denver is spending the $41M from the Broncos sale, analysis of recent wage transparency studies. A. Effective January 1, 2021, Part 2 of the Equal Pay for Equal Work Act, C.R.S. On January 1, 2021, Colorado's new pay equity law, the " Equal Pay for Equal Work Act ," will become effective. Equal Pay. Remote jobs are not addressed in the draft bill. Concerning the creation of the "Equal Pay for Equal Work Act" in order to implement measures to prevent pay disparities. If you do not have evidence, you should describe the alleged violation. Existing research was deemed not conclusive by the Institute for Womens Policy Research. Is this part of the Colorado Equal Pay for Equal Work Act? The clear winner in the latest Whats Working poll about what new laws we need was None. Colorados law really kicked off a conversation amongst employers, said Andrea Johnson, director of state policy and work initiatives at the National Womens Law Center. See Colo. Rev. Not surprisingly, the Act has led to a number of questions for employers. Challenges to the No Surprises Act Continue: The Latest includes a Navigating Permissive State Laws in Light of the Federal Information FDA Publishes List of 2023 Priority Guidance Topics. This isnt a complicated regulatory regime or complex benefit, Johnson said. Federal and Colorado equal pay laws prohibit employers from discriminating against individuals by retaliation because they engaged in a protected activity. But it wasnt perfect, apparently. But, the analysis found, these laws do not necessarily increase womens earnings. Top 12 Things Employers Need to Know About the Colorado Equal Pay for Equal Work Act Insights 7.06.21 Colorado's Equal Pay for Equal Work Act became effective at the beginning of 2021, but employers across the state continue to have questions about the scope of the new law. OverviewWith its recently enacted Equal Pay for Equal Work Act (the "Act"), Colorado is one of more than a dozen states taking action to protect employees against discrimination and ensure equal pay for equal work. U.S. economy grew slower News that the nations economy is still growing was a relief as talk of recession continued. Share with Whats Working by emailing tamara@coloradosun.com. Wage discrimination based on sex - complaints - civil action - exceptions to prohibitions against wage differentials - prohibited acts of employer - employment announcements required - enforcement - rules. As always, share your 2 cents on how the economy is keeping you down or helping you up at cosun.co/heyww. Plus: Wage transparency violators fined, other labor bills and more. This level of transparency creates awkwardness for companies that, for example, wish to move a senior partner to a specific role, something that has been done for years to reward top workers. The third, SpotOn Transact, a San Francisco-based payments company, paid a $16,000 fine in July based on violations related to 33 job postings that did not include compensation for jobs that could be performed in Colorado. The Equal Pay for Equal Work Act ("EPEWA") aims to "help close the pay gap in Colorado and ensure that employees with similar job duties are paid the same wage rate regardless of sex, or sex plus another protected status." We have reviewed all of the detailed legal rules and guidance to develop a list of the top 12 things employers need to know about the Act. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. If you have questions, please contact your Fisher Phillips attorney, the author of this Insight, any attorney in our Denver office or any member of our Pay Equity Practice Group. You. Three, including Monigle, were fined. This article contains new, firsthand information uncovered by its reporter(s). This bill aims to clear some of those things up. Stat. While the Colorado Department of Labor and Employment has attempted to provide clarity around the job posting and pay transparency provisions in the Act adopting Equal Pay Transparency Rules, issuing its Statement of Basis, Purpose, Specific Statutory Authority, and Findings, and providing its Interpretive Notice and Formal Opinion #9 there remain some common compliance questions that are not easily uncovered in these documents. A system that measures earnings by quantity or quality of production; The geographic location where the work is performed; Education, training, or experience to the extent that they are reasonably related to the work in question; or. Boulder campus Human Resources, University Counsel, Data Analytics and campus Executive Leadership are leading the review, analysis, and implementation in this area. Refer Senate Bill 19-085 to the Committee of the Whole. Strictly Confidential? In other words, he added, employers already have a sense of what theyre willing to pay and how much their competitors do. Promotional opportunities may also include required qualifications and intended hire (, If an employer regularly (at least monthly) hires or automatically promotes employees, including in-line lateral promotions, into a specific position upon the completion of set requirements, an employer may issue a one-time static notice of the promotional opportunity (. The Act was enacted to address pay disparities affecting women and minorities, and includes several provisions aimed at preventing wage discrimination, such as: Prohibiting employers from seeking prospective employees wage rate histories; Allowing employees subject to wage discrimination to file a civil action; and. Here are some commonly asked questions by our clients: A. Other states have followed suit in recent months, including California, Washington and soon, New York. Effective January 1, 2021, this act amends Colorado law and provides new wage discrimination and employer provisions that differ from federal law and other state equal pay laws. The Act requires employers to keep records of job descriptions and wage rate history for each employee for the duration of the employment plus two years after the end of employment. Chalk Monigles fine up to a hiring frenzy, a new applicant tracking system and, like many small businesses, a small HR team that made it challenging to keep track of the intricacies of new employment laws, said Nichole Albertsmeier, the companys chief financial and administrative officer. The first-of its-kind lawwhich . And we hired 61 people in (2021). Job postings (which also serve as a job description) are also archived by HR through CU Boulder Jobs, including regular faculty and research faculty. She shares updates on Denvers basic-income program. Supporters of Colorados pay-transparency law eye protections for workers blackballed by national employers, Whats Working: Colorado asks how much does that job pay? There's a clear movement across the country for greater pay transparency and workers' rights, but Colorado's Equal Pay law remains the most expansive. But the laws add extra concerns for employers who have operations or at least one worker in multiple states. But theres still plenty of confusion. Due to the wide-ranging requirements and impacts of the . Five months after Colorado's new Equal Pay for Equal Work Act became effective, employers are still struggling with understanding this law and related guidance, and how to comply. Excluding remote workers from the protections of the Equal Pay for Equal Work Act would negatively impact a valued and critical part of our workforce, she said. The Act also contains several broader obligations and prohibitions intended to increase pay transparency, including: Requiring employers to announce opportunities for promotion or advancement; Requiring employers to disclose hourly or salary compensation and benefits for each posting or job opening; and. Refer to the House or Senate Journal for additional information. : Advanced Marketing Compels Trial on Arbitration in a TCPA Health Plans Gag Clause Attestations Due December 31, 2023. Biden-Harris Administration Announces $25,945,000 for Clean Water FCC OPEN COMMISION MEETING SET FOR MARCH 16, 2023: Tentatively On Federal Communications Commission to Consider Rules and Proposals to Protect Whats the Standard? Only the Colorado range is required for multi-state or remote postings; postings may specify a different range for different parts of Colorado. 8-5-101 et seq., requires employers to include compensation in job postings, notify employees of promotional opportunities, and keep job description and wage rate records. And workers who do respond to last-minute schedule changes would receive a predictability pay bonus. Monigle is the rare employer that did not bring itself into compliance after the Division issued it a no-fines Warning & Order detailing where, when, and why its job postings violated the Act, read the department of labor notice to Monigle, dated Dec. 2, 2021. A. In an apparent response to employers who have excluded Colorado residents from their applicant pools since the CEPEWA took effect on January 1, 2021, Revised INFO #9 also provides: "Thus, a remote job posting, even if it states that the employer will not accept Colorado applicants, remains covered by the Act's transparency requirements: the . Leeds School of Business economists at the University of Colorado had previously forecast the states real GDP to increase 2% this year. The former is a promotion as part of that type of job. As it grew last year, no one at Monigle Associates was paying close attention to emails from the Colorado Department of Labor and Employment. CU Boulder, along with each campus and system office of the University of Colorado, is evaluating the requirements of the new law and reviewing existing policies and pay practices for alignment. Some of that has to do with the competition for workers as businesses reopened in the pandemic. A. Will Changes to the Option To Tax Regime Impact UK Insolvency Sales? She also writes the "What's Working" column, available as a free newsletter at coloradosun.com/getww. Failure to maintain these records creates a rebuttable presumption, in a lawsuit alleging wage discrimination based on sex, that the records not maintained contained information favorable to the employee's claim. That employees pay is at least at the minimum pay range, Two Ways to Redefine & Achieve Success. Act, C.R.S not necessarily increase Womens earnings become a Sun member at coloradosun.com/join, Tamara writes businesses! At CDLEEqual OpportunityOpen RecordsPerformance Plans, Social Media Comment PolicySecurity StatementPrivacy PolicyLegal NoticesLinking Policy News that nations... Analysis story succinctly: Growth was less than advertised, better than feared employees pay at... 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