Colorado’s pay transparency law, the Equal Pay for Equal Work Act (C.R.S. ยง 8-5-101 et seq.), requires almost every employer with any worker in the state to publish compensation and benefit details in job postings, tell current employees about openings and about who was hired, and pay workers equally for substantially similar work.1Department of Labor & Employment. Equal Pay for Equal Work Act Amendments that took effect January 1, 2024 added application deadlines and post-selection notices to the list. Fines run from $500 to $10,000 per violation, and pay discrimination claims can recover up to six years of back pay, doubled.
Who Has to Follow the Law
The statute defines “employer” broadly: the state, any political subdivision, and “every other person employing a person in the state.”2Colorado Department of Labor and Employment. Colorado Equal Pay for Equal Work Act Private businesses, nonprofits, and government all qualify. There is no small-employer exemption. A two-person shop has the same obligations as a large corporation.
Out-of-state companies are not exempt either. Under the Posting, Screening, and Transparency (POST) Rules, the requirements apply to any posting for work “to be primarily performed in Colorado, or that could be performed in Colorado.”3Colorado Department of Labor and Employment. Posting Screening and Transparency Rules POST Rules 1103-18 One remote Colorado employee is enough to trigger the internal notice obligations for the whole workforce there, even when the opening itself is in another state.
What Every Job Posting Must Include
Every posting, whether external or internal, has to contain the following:3Colorado Department of Labor and Employment. Posting Screening and Transparency Rules POST Rules 1103-18
- The hourly rate or salary, or a range from the lowest to highest amount the employer in good faith believes it might pay.
- A general description of any bonuses, commissions, or other compensation.
- A general description of benefits, including health care, retirement, and paid time off (sick, parental, vacation), plus any other benefits reportable for federal tax purposes. Minor perks can be left out.
- The date the application window is expected to close. If the position accepts applications on a rolling basis, the posting must say so.
- Instructions for how to apply.
The Pay Range Has to Be Real
The range must reflect what the employer genuinely believes it might pay at the time of posting.4Justia Law. Colorado Code 8-5-201 “Competitive salary” or “commensurate with experience” does not count. The posting needs actual numbers. Ending up paying more or less than the posted range is allowed, as long as the original range was a reasonable estimate when published.
Deadlines Since 2024
Since January 1, 2024, postings must state an expected application closing date or explicitly say applications are being accepted on a rolling basis.3Colorado Department of Labor and Employment. Posting Screening and Transparency Rules POST Rules 1103-18 A deadline can be extended, but only if the original date was a good-faith estimate and the posting is promptly updated.
Internal Notices and Post-Selection Announcements
Employers must make reasonable efforts to announce every job opportunity to all current employees on the same calendar day the opportunity is made public or shared with anyone outside.3Colorado Department of Labor and Employment. Posting Screening and Transparency Rules POST Rules 1103-18 Internal notices carry the same content requirements as external postings: pay range, benefits, deadline, application instructions. Quietly filling an opening before staff know it exists is not allowed.
After a position is filled, employers must issue a post-selection notice to employees who could have been interested in the role. That notice must include:
- The selected candidate’s name
- Their former job title, if they were an internal hire
- Their new job title
- How employees can express interest in similar opportunities going forward
The post-selection notice does not disclose the selected candidate’s compensation.5Colorado Department of Labor and Employment. Transparency in Pay and Job Opportunities – Colorado EPEWA Part 2 Employers frequently trip on this, either by omitting the notice or by over-sharing the new hire’s pay.
Equal Pay for Substantially Similar Work
Transparency is only half of what this statute does. It also prohibits paying an employee of one sex less than an employee of a different sex for substantially similar work, and the prohibition extends to pay gaps tied to sex combined with another protected status like race or age.6Justia Law. Colorado Code 8-5-104 – Employer Liability Whether work is substantially similar is judged by a composite of skill, effort (including shift work), and responsibility. Job titles alone do not decide it.
Different pay is defensible only if it is based entirely on one or more of these factors, and none of them are wage history:
- A seniority system
- A merit system
- A production-based system tied to output quantity or quality
- Geographic location where the work is actually performed
- Education, training, or experience reasonably related to the work
- Travel, when it is a regular and necessary part of the job
The employer bears the burden of proving these factors account for the entire gap.7Colorado General Assembly. SB19-085 Equal Pay For Equal Work Act A partial explanation is not enough. If a $15,000 gap exists and seniority explains $10,000, the remaining $5,000 is still a violation.
Your Right to Talk About Pay
Employers cannot stop workers from discussing their own compensation with coworkers, and cannot require employees to sign waivers barring wage discussions. The same protection exists under the federal National Labor Relations Act, which makes it unlawful to punish, interrogate, threaten, or surveil employees for discussing pay.8National Labor Relations Board. Your Rights to Discuss Wages Retaliation for filing a complaint or participating in an investigation is separately prohibited.
A handbook clause or hiring agreement that forbids wage discussions is unenforceable. You can report it as its own violation.
How to File a Complaint or Lawsuit
You have two paths, and you can pursue them at the same time.
Administrative Complaint
The Colorado Division of Labor Standards and Statistics accepts complaints in writing on official forms available through the Department of Labor and Employment.1Department of Labor & Employment. Equal Pay for Equal Work Act You can submit online or by mail. Attach whatever supporting evidence you have: screenshots of a non-compliant posting, pay stubs, internal messages. After the Division receives the complaint, it reviews the allegations and typically contacts the employer for a response. Investigations can take several months.
Private Lawsuit
The Act carries a private right of action. You can file suit in state court without exhausting the administrative process first, which is unusual for a state employment statute. An attorney can file directly on your behalf.
Penalties, Damages, and the Audit Defense
Consequences fall into two buckets: administrative fines for posting and notice failures, and civil damages for pay discrimination.
Fines for Posting and Notice Violations
Violations of the posting, notification, or record-keeping requirements draw fines of $500 to $10,000 per violation. Each non-compliant posting or missed internal notice can count separately, so the numbers accumulate quickly for employers who ignore the rules across many openings. Employers must also keep job descriptions and wage rate histories for every employee throughout employment and for two years after separation.1Department of Labor & Employment. Equal Pay for Equal Work Act
Damages for Pay Discrimination
An employee who proves sex-based pay discrimination can recover the difference between what they were paid and what they should have been paid, plus an equal amount in liquidated damages. Recovery is effectively doubled.6Justia Law. Colorado Code 8-5-104 – Employer Liability A court can also order reinstatement, promotion, a pay increase, and payment of the employee’s attorney fees and costs. Back pay can reach up to six years.
The Pay Audit Defense
Employers have one real tool for limiting exposure. If an employer completed a thorough and comprehensive pay audit within two years before a lawsuit was filed, and the audit was specifically aimed at identifying and correcting unlawful pay gaps, a court may find the employer acted in good faith and decline to award liquidated damages.6Justia Law. Colorado Code 8-5-104 – Employer Liability The audit does not eliminate liability. The employer still owes the actual pay difference. It cuts the doubling, which is enough of a financial incentive to audit regularly rather than wait for a complaint.