Do Your Job Postings Comply with Colorado Law?

August 30, 2022

Lately I’ve read several articles about how difficult it is for employers to fill job openings. Out of curiosity, I went to the websites of some Colorado companies just to see whether they have any openings posted. I was not checking for compliance with Colorado’s pay transparency rules, but I did notice that some of the job postings do not comply.

Regarding job postings, Colorado’s Equal Pay for Equal Work Act says, “An employer shall disclose in each posting for each job opening the hourly or salary compensation, or a range of the hourly or salary compensation, and a general description of all of the benefits and other compensation to be offered to the hired applicant.”

The Colorado Department of Labor and Employment’s interpretive guidance (INFO #9, linked below) expands on the statutory language. Although the CDLE’s guidance does not have the force of law, complying with the guidance will reduce the risk of being penalized for non-compliant job postings.

According to the CDLE, job postings must include the rate of compensation (salary, hourly, piece rate, or day rate) or a compensation range. “Range” means postings must include a lower and upper limit. For example, a job posting cannot simply say, “$20/hour and up.” (But I saw a few job postings that do not specify the upper limit.) The job posting must also include a general description of any bonuses, commissions, or other compensation.

An employer might end up paying a new hire more or less than the posted range. That is not an issue if the posted range represents what the employer genuinely believed it was willing to pay.

If a job includes benefits, the job posting must give a general description of the benefits. Merely saying “with benefits” or “includes benefits” is not sufficient. The description of benefits should identify all benefits, rather than listing a few followed by “etc.” Also avoid using language like this: “We offer benefits such as…,” which indicates a list of examples, rather than a complete list. (I noticed some postings that use "such as.")

While all benefits must be listed in a job posting, they do not need to be described in detail. Furthermore, INFO #9 says employers need not list “minor perks,” such as employee discounts or use of a company gym.

INFO #9 discusses other matters, such as which jobs and which postings are covered by the law. To avoid penalties, employers should closely review INFO #9 and ensure their job postings comply with its requirements. INFO #9 can be found here.

NOTE: This article discusses only that part of Colorado’s Equal Pay for Equal Work Act that pertains to “Transparency in Pay and Opportunities for Advancement.” Employers also need to understand the statute’s equal pay requirements. For an overview, see my November 6, 2020, post (below), titled Colorado’s Equal Pay for Equal Work Act Becomes Effective January 1. A copy of the bill, as enacted, can be found here.