Today, the United States District Court for the District of Colorado issued a long-awaited ruling on a motion to enjoin the recently enacted Colorado Pay Equity Transparency Rules.
These rules were first proposed in September 2020, finalized in November 2020, clarified in December 2020, and became effective January 1, 2021.
They are far reaching. But in short, they require that employers (1) include pay and benefit information in the job posting and (2) provide specific written notices regarding all “promotional opportunities”—including those involving non-competitive “in-seat” promotions for any employee, anywhere in the company—to Colorado employees before making a promotion decision. The Rocky Mountain Association of Recruiters sued to enjoin the new rules. And today the Court denied the injunction.
Upon preliminary review, it seems the decision largely came down to a lack of evidence in support of plaintiff’s arguments. This may open the door for the case to develop the facts on the relative burdens and benefits. So it may not be over yet.
But for now, we expect the Colorado Department of Labor and Employment to continue enforcing these rules. And we’ve already seen these enforcement efforts begin.
We will continue to monitor for additional developments and provide updates as we learn more.
For additional information or to discuss how Colorado’s Equal Pay Transparency Rules might affect your promotional and job posting processes, please contact a Jackson Lewis attorney.