Update on Challenge to Equal Pay for Equal Work Act

FURTHER UPDATE: On July 6, 2021, the parties agreed to dismiss the lawsuit and the court dismissed the action, without prejudice, the following day.

June 9, 2021

Last December the Rocky Mountain Association of Recruiters (RMAR) filed a lawsuit challenging the legality of two key provisions in Colorado’s Equal Pay for Equal Work Act (EPEWA). For a brief description of that lawsuit, see the post below dated April 23, 2021.

RMAR also filed a motion for a preliminary injunction, which would have stopped enforcement of the challenged provisions until a trial is held to fully address the issues. On April 21, the court heard oral arguments on the motion for a preliminary injunction, after which the judge asked the parties to file additional briefs addressing certain aspects of their arguments, including the severity of the burdens the EPEWA imposes on employers and the statute’s legislative history.

On May 27, the judge issued an order denying the motion for a preliminary injunction. The court found that the statute is reasonably related to a substantial government interest (closing or narrowing the gender wage gap) and does not unduly burden employers.

Consequently, Colorado employers are still required to comply with the new posting requirements. The parties can proceed to a full trial on the merits; however, denial of the preliminary injunction means the court does not think RMAR’s arguments will prevail at trial.