Transparency in Pay and Job Opportunities: The Colorado Equal Pay for Equal Work
Overview
The Colorado Equal Pay for Equal Work Act (“Act”) and the accompanying Equal Pay Transparency Rules are intended to promote equity in compensation and opportunity. A primary tool for accomplishing the goal of equity in compensation and opportunity is requiring employers to be transparent in sharing opportunities with the employer’s entire workforce.
The Colorado Equal Pay for Equal Work Act, Part 2
The nation’s first pay transparency law of its kind, Part 2 was enacted in a law to further “equal pay,” based on “the intent of the general assembly ... to close the pay gap in Colorado and ensure that employees with similar job duties are paid the same wage rate.”
Colorado Equal Pay for Equal Work Act FAQ
What does the Colorado Equal Pay for Equal Work Act do?
Prohibits wage discrimination between employees on the basis of sex or on the basis of sex in combination with another protected status, by paying an employee of one sex a wage rate less than the rate paid to an employee of a different sex for substantially similar work (based on a composite of skill; effort, which may include consideration of shift work; and responsibility), regardless of job title. A wage rate differential is permissible if at least one of the following factors accounts for the entire wage rate differential:
- A seniority system;
- A merit system;
- 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
- Travel, if the travel is a regular and necessary condition of the work performed.
Requires the employer to keep records of job descriptions and wage rate history for each employee for the duration of employment plus two years after the end of employment.
Requires notice of job openings and promotional opportunities, including the hourly or salary rate or range and a general description of all benefits and other compensation offered to the hired applicant.
Prohibits using pay history for prospective employees by requiring that an employer not seek the wage rate history, or rely on the wage rate history, of a prospective employee to determine a wage rate. Discrimination or retaliation against a prospective employee for failing to disclose wage rate history is also prohibited.
What are a hiring manager's obligations under the Colorado Equal Pay for Equal Work Act?
- All job openings and promotional opportunities must be posted with specified pay rate or range. Job postings can no longer state that “pay is commensurate with experience.”
- All promotional opportunities must be posted to the entire workforce before a hiring or promotion decision is made.
- When hiring a prospective employee or promoting an existing employee to a new position, you cannot ask for their current salary or salary history, and cannot use that information to set compensation for the new position; and
- Employees may not be prohibited from or disciplined for disclosing their compensation.
- Hiring Managers should confirm that there is an accurate job description for all employees.
Are we required to consider unqualified candidates for positions?
No. Although employers must notify all employees of all promotional opportunities, including those whom the employer deems are not qualified for the position, the employer may state that applications are open to only those with certain qualifications and may screen or reject candidates who do not meet such qualifications.
What is considered a promotional opportunity that requires a posting?
A “promotional opportunity” means when the University of Denver (“DU” or “University”) has or anticipates a vacancy in an existing or new position that could be considered a promotion for one or more employee(s) in terms of compensation, benefits, status, duties, or access to further advancement.
What compensation and benefits information must be included in job postings?
Employers must include the following compensation and benefits information in each posting:
- The hourly rate or salary compensation (or a range thereof) that the employer in good faith believes it may pay for the particular job;
- A general description of any bonuses, commission, or other forms of compensation that are being offered for the job; and
- A general description of all employment benefits that are being offered for the position.
How will the University determine the hourly rate or salary compensation (or range thereof) that it will post for the particular faculty or staff position?
For staff positions, the University will post the salary range that HR Compensation has determined for the particular position, rather than the much broader range for the position’s salary grade.
For faculty, the University will post the salary range that the Office of the Provost has determined and approved for the particular position.
What is the "salary disclaimer"?
The salary disclaimer will accompany all job postings and states the following:
The University of Denver has provided a compensation range that represents its good faith estimate of what the University may pay for the position at the time of posting. The University may ultimately pay more or less than the posted compensation range. The salary offered to the selected candidate will be determined based on factors such as the qualifications of the selected candidate, departmental budget availability, internal salary equity considerations, and available market information, but not based on a candidate’s sex or any other protected status.
What information must be included in job postings?
The University is required to make “reasonable efforts” to “announce, post or otherwise make known all opportunities for promotion to all current employees on the same calendar day and prior to making a promotion decision.”
A “promotional opportunity” means when the University has or anticipates a vacancy in an existing or new position that could be considered a promotion for one or more employee(s) in terms of compensation, benefits, status, duties, or access to further advancement.
The posting must include at least:
1. Required by the EPEWA and its implementing rules:
- The job title;
- Means by which individuals may apply for the position;
- The hourly rate or salary compensation (or a range thereof) that the employer in good faith believes it may pay for the particular job;
- A general description of any bonuses, commission, or other forms of compensation that are being offered for the job;
- A general description of all employment benefits offered for the position, including health care benefits, retirement benefits, any benefits permitting paid days off, and other benefits that must be reported for federal tax purposes, but not benefits in the form of minor perks.
2. Required by the University:
- The University’s stated commitment to diversity and inclusion;
- A description of the unit;
- Required qualifications; and Preferred Qualifications suggested
- Any pre-hiring requirements, such as background checks.
The posting requirement is for all positions to all employees, even if most employees do not meet the minimum qualifications for the posted position. However, the posting may state that applications are open to only those with certain qualifications, and the University may screen or reject candidates who do not meet such qualifications.
Why am I Required to have an Application Deadline?
How to Apply and the Application Deadline must be disclosed. An employer must make a good-faith estimate of the date an application window is anticipated to close, and include the estimate as a deadline on the posting. Language like “open until filled” is not compliant. An application deadline may be extended if the original deadline was a good-faith expectation of what the deadline would be, and the posting is promptly updated with any deadline extension.
If a position is consistently open for recruitment (for example, if the employer continuously accepts applications to keep up with turnover), then there is no deadline to list, and the employer must disclose on the posting that it accepts ongoing applications.
Are there any exceptions to the job posting requirement?
The very limited exceptions of when an opportunity is not required to be posted:
1. Confidentiality -- When there is a compelling need to keep a particular job opening confidential because the incumbent employee is not aware that they will be separated.
2. Non-Competitive Promotion –
- “Career Progression” promotions — “regular or automatic” promotions “based on time in a specific role or other objective metrics” that employees can satisfy without competition.
- “Career Development” promotions — “to update the employee’s job title or compensate the employee to reflect work performed or contributions already made by the employee.” This exception recognizes that there’s no competitive “job opportunity” to post if an employee’s own duties simply grew enough to change their own position.
3. Temporary, acting or interim hires -- When a position is filled on a temporary basis for up to nine (9) months where the hiring is not expected to be permanent, such as an acting or interim position, provided that if the hire may become permanent, the position must be posted in time for employees to apply for the permanent position.
The most relevant exception for hiring managers is for temporary, acting or interim hires for up to nine months, where the hiring is not expected to be permanent. An example is a seasonal position or placing an employee in an acting or interim position. If the hire or the position may become permanent, the hiring manager must comply with the posting requirements to allow other employees to apply for the permanent position and, in any case, before making a permanent hiring decision.
For additional information please see HRIC 5.10.030 Posting for Faculty, Staff, and Student Position.
May I elect to only post a job internally?
Yes, you can request to post internal-only. Internal only postings are appropriate for promotions in seat, faculty overload payments, student employment, class assignments for adjunct professors or when the hiring manager, in collaboration with their Recruiter, determines there is a sufficient pool of qualified applicants within the University.
Where will job postings be made?
For Student Positions – Pioneer Careers Online (PCO)
For Faculty and Staff Positions – Jobs@DU
Adjunct Faculty Course Assignments – Jobs@DU
How long must a job posting be posted?
Per the University Employee Handbook, the minimum number of days for a posting is as follows:
- Non-exempt positions are posted for a minimum of five (5) working days, while exempt positions are posted for a minimum of ten (10) working days.
- Internal only postings are posted for a minimum of two (2) working days regardless of exempt/non-exempt status.
Does the posting requirement apply to student employment?
Yes. DU must post any job for a student employee who is expected to work for more than 9 months. For example, DU must post for any position for a student employee that is expected to last an entire academic year.
Does the posting requirement apply to faculty "overload" payments?
It depends. If the overload payment is for an assignment that lasts more than nine months - yes. Examples of assignments that last more than nine months may include taking on an additional role such as chair of a department, special project, or teaching an additional course.
Is a posting required for graduate/teaching/research/student assistants (GXA)?
Yes. The Office of Graduate Education and the Office of the Provost will develop a job posting to satisfy the requirements of the Act for GXAs and fellowships that are provided as a part of graduate students’ financial aid award and recruiting package. Departments will not be required to make individual postings for those positions. However, departments must post through student employment process any hourly positions available to existing graduate students that are not a GXA or fellowship position.
Is a posting required for a temporary or seasonal employee?
Under the Act, no posting is required to fill a position on a temporary basis for up to nine months where the hiring is not expected to be permanent. An example is an acting, interim or seasonal position. If the hire or the position may become permanent, DU must comply with the posting requirements to allow other employees to apply for the permanent position, and in any case, before making a permanent hiring decision.
Is posting required for Adjunct Faculty?
Yes. Departments can use both the expressions of interest and existing members of the hired adjunct pool (regardless of an expression of interest) to fill course teaching positions.
Is a posting required for non-benefitted staff?
It depends. If you expect the employee to work for more than 9 months, then a posting is required. This applies to 1000 hour employees, part-time employees, and full-time staff. If you initially hire an employee as temporary staff and later determine that you need the position after 9 months, you must post the job before making a hiring decision to fill the position, even if there is an incumbent employee in the position. Therefore, it is recommended that all non-benefited staff positions be posted to provide maximum flexibility for the hiring manager.