Legislative lowdown: Colorado employers must notify workers of new job opportunities

Amendments to Colorado’s pay transparency law will require employers to share more information with their current employees about new job opportunities as they become available. The amended law, which took effect Jan. 1, 2024, also extends the period of time for which employees may obtain back pay for wage disparity violations from three years to six.

New job posting requirements. Since 2021, Colorado has required employers to include in job advertisements the hourly wage or salary they’re offering, as well as any additional compensation information (i.e., bonuses, commissions) and details about benefits.

While the state has also required employers to notify their workers of promotion opportunities, the law now goes further, requiring “reasonable efforts to announce, post, or otherwise make known” any “job opportunity” that arises, along with the expected salary and benefits.

Additionally, Colorado employers must now make an effort to notify employees who will be working regularly with any new hires of their selection decision within 30 days of filling a position. They should include the selected candidate’s name, and their previous title at the company, if it’s an internal hire. The notice should also include information about how employees “may demonstrate interest in similar job opportunities in the future,” along with relevant job contacts workers may reach out to about said opportunities.

There are some exceptions to the rule. Employers who don’t have a physical office in Colorado, and have fewer than 15 employees working in the state, only need to notify their workforce of remote job opportunities. Additionally, employers don’t have to give workers the heads up regarding opportunities considered “career development” or “career progression,” such as when an employee receives a title bump or raise, or is automatically moved from one position to another.

Illinois and New Jersey lawmakers have also included provisions in pay transparency legislation requiring employers to be more transparent about promotions, given these opportunities can affect career mobility and salary potential. “If people are not aware of opportunities then they would be less likely to know how to move up in their careers,” Christine Hendrickson, VP of strategic initiatives at pay equity software firm Syndio, told Bloomberg Law last year.

Extended back pay period. Colorado’s pay transparency law, known as the Equal Pay for Equal Work Act, prohibits wage discrimination on the basis of sex, except if disparities can be explained by factors such as a seniority or merit system, geographic location, or education, training, or experience.

Under the amended law, employees will be eligible to receive back pay for a period of up to six years if their employer violates this statute. That’s up from three years previously.