Equal Pay in Colorado

Equal pay in Colorado is protected by the Equal Pay for Equal Work Act (CEPEWA), one of the strongest pay equity laws in the country.

Colorado’s Equal Pay for Equal Work Act, commonly known as CEPEWA, is one of the most comprehensive pay equity laws in the country. Enacted in 2019 and strengthened through subsequent amendments, CEPEWA goes beyond simply prohibiting unequal pay. It imposes transparency requirements on employers and gives workers powerful tools to identify and challenge wage discrimination.

What Colorado Equal Pay Law (CEPEWA) Requires

At its core, CEPEWA prohibits employers from paying employees of one sex less than employees of another sex for substantially similar work. Substantially similar work is defined by a composite of skill, effort, and responsibility, not by job title. Two employees can have different titles and still be performing substantially similar work if the core functions of their jobs overlap significantly.

CEPEWA also prohibits employers from relying on a prospective employee’s wage history to determine compensation. An employer cannot ask what you earned at a previous job, and if they discover that information through other means, they cannot use it to justify paying you less than your peers.

Pay Transparency Requirements

One of CEPEWA’s most impactful provisions requires employers to disclose the pay range and a general description of benefits for every job posting. This applies to all positions, including promotions and transfer opportunities within the company. Employers must also notify current employees of promotional opportunities and keep records of job descriptions and wage rates for each employee throughout their employment and for two years after separation.

These transparency requirements serve a dual purpose: they allow job applicants to make informed decisions and they help current employees identify potential pay disparities. If your employer is not including pay ranges in job postings, they are violating state law.

Permitted Pay Differences

CEPEWA does not require that every employee in a similar role be paid identically. Employers can justify pay differences based on a seniority system, a merit system, a system that measures earnings by quantity or quality of production, the geographic location where the work is performed, education, training, or experience to the extent that those factors are reasonably related to the work, or travel requirements. However, the employer bears the burden of proving that a pay disparity is justified by one or more of these factors, and the factor relied upon must account for the entire wage differential, not just part of it.

Broader Protections Beyond Gender

While CEPEWA is primarily focused on sex-based pay discrimination, pay disparities based on other protected characteristics, such as race, national origin, or disability, are actionable under the Colorado Anti-Discrimination Act (CADA) and federal laws including Title VII and the Equal Pay Act. If you are being paid less than colleagues doing substantially similar work and you believe the disparity is connected to any protected characteristic, you may have a claim.

What You Can Do

Start by documenting your actual job duties, not just your title, and comparing them to those of higher-paid colleagues. Note differences in compensation including base salary, bonuses, equity, and benefits. Request a copy of your job description if one exists. Review job postings within your company to compare posted pay ranges with what you are actually earning.

Helpful Resources

• Colorado Equal Pay for Equal Work Act
• EEOC Equal Pay
• Colorado Division of Labor

If you believe you are being paid unfairly, you can raise the issue internally, file a complaint with the Colorado Department of Labor and Employment, or pursue a claim in court. Retaliation for raising pay equity concerns is illegal. If your employer takes adverse action against you for asking about pay or asserting your rights under CEPEWA, that retaliation is itself a separate legal violation.