New laws pose challenges, but also offer benefits

Ed Krey

Once upon a time — over the last couple of years, actually — in the beautiful state of Colorado, two laws were enacted that aimed to improve the lives of employees and promote fairness in the workplace. These laws were the Colorado Healthy Families and Workplaces Act (HFWA) and Colorado Equal Pay for Equal Work Act.

HFWA required Colorado employers to offer paid sick leave under various circumstances. While businesses endured financial effects, the law provided protections for employees and helped promote healthier workplaces.

An employee unable to work due to illness could use accrued paid sick leave to take time off and still receive pay. This could help prevent the spread of illness in the workplace and ensure employees were able to recover and return to work in good health.

As of Aug. 7, employees may use HFWA paid sick leave for additional purposes, including:

To care for a family member whose school or place of care has been closed due to inclement weather, loss of power, loss of heating, loss of water or other unexpected occurrences or events.

To evacuate residences due to inclement weather, loss of power, loss of heating, loss of water or other unexpected occurrences or events.

To grieve, attend funeral services or a memorial, or deal with financial and legal matters that arise after the death of a family member.

The Colorado Equal Pay for Equal Work Act aimed to prevent wage discrimination and close the gender pay gap. The law created significant compliance requirements for Colorado employers, even those with only one Colorado-based remote employee. That was a shift away from what was the under 10 employees approach.

The federal Equal Pay Act provides protections against discriminatory practices, including those involving bonuses, cleaning or gasoline allowances, holiday and vacation pay, hotel accommodations, life insurance, overtime pay, reimbursement for travel expenses and salary.

Colorado took this a step further. With the new law, employers are required to create job descriptions, develop wage scales, perform wage audits to ensure similar pay for similar work between genders, post promotions and provide benefit and wage information in job postings.

Employers are held to only six categories for lawful wage disparities — education/experience, geographic location, quantity/quality, merit, seniority and travel.
In addition, employers can no longer inquire about or use earned wage history from previous employers to set wages.

In May, the Colorado legislature passed Senate Bill 23-105, which amends the Equal Pay for Equal Work Act to clarify certain existing employer responsibilities, remove some requirements and add new obligations. Provisions of the amendment will take affect Jan. 1.

The law will require additional requirements after the employer hires for the position. For example, providing notification to existing employees explaining who was hired for a position, including title, former title and how other employees could quality for the position in the future.

Some of the changes also will reduce burdens for employers, however. They’ll no longer be required to post internally for career development or career progression opportunities. Employers aren’t required to post for all job opportunities instead of just promotions.

To ensure compliance with new laws and regulations, businesses must take several actions. One effective action is to remain connected with reputable human resource organizations and employment law attorneys, review newsletters and publications and attend trainings. These organizations provide updates and resources that help businesses stay up to date with new regulations.

It’s important for businesses to take proactive steps to ensure compliance because failing to do so can have serious consequences. By staying informed and taking appropriate action, businesses can ensure they’re in compliance with all employment laws and regulations.

These two laws exerted significant effects on employers and employees in Colorado. While the laws might have created some challenges for businesses, they also provided important protections for employees and helped promote a healthy and fair workplace. Hopefully, everyone will live happily ever after.