Can Colorado Enforce its Compensation and Advancement Regulation on Job Postings?

Employment, Insurance, Malpractice, and Estate Attorneys Serving Denver, Colorado Springs, Pueblo, Castle Rock & Nearby Colorado

Posted: December 27, 2021

Michael Kuhn, a shareholder in Leventhal Lewis and an expert in employment law, was recently interviewed in the Forbes article, “What’s The Pay? More Employers, Including Chime And Accenture, Are Falling In Line With Colorado Law Requiring Salary Ranges In Job Postings.”

The article explores how Colorado’s Equal Work for Equal Pay Act is under scrutiny by employers in Colorado and around the country. In short, the Act, in an effort to improve transparency and equity in terms of wages and advancement opportunities, requires employers to disclose terms in any job posting that might result in the hire of a Colorado resident.

“This law is written in such a way that any business, founded in any state, must disclose pay and promotion information if a prospective employee that resides in Colorado could take the job, regardless of whether the work is performed remotely or in-person for the employer,” said Leventhal Lewis shareholder Michael Kuhn. That could mean that a New York, Seattle or Atlanta-based employer must post salary ranges and possible advancement opportunities for any remote roles posted online.

Kuhn raised questions about the enforceability and constitutionality of the law during an interview with author Isabel Contreras, pointing out that a state is generally precluded from enforcing laws outside of its jurisdiction.  However, that may not be the primary reason for noncompliance. Most job posters are currently unaware or Colorado’s regulation, but that may change.

“It is not uncommon for a law such as Colorado’s Equal Work for Equal Pay act to trigger similar regulation in other states,” Kuhn said.

Additionally, many businesses will base their practices on the highest standard of the law across states, adopting the most stringent practice as the norm, rather than facing the risks that may come with maintaining different standards for each state in which they operate.

In fact, though failure to follow regulation is one component of risk, business liability is predicated on several factors: law, industry norms, and assertions by a business about their standards, intentions or behavior. Because of this, the evaluation of laws and norms plus the establishment and regular internal audit of business ethics has become a best practice across industries.

Is your business or firm concerned about meeting or exceeding the standards set forth in the Colorado’s Equal Work for Equal Pay Act? Contact our legal team for a consultation on how this legislation may impact your firm.

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