Colorado Pay Transparency Law (EPEWA): Requirements & FAQ

Colorado Senate Bill 19-085, known as the Equal Pay for Equal Work Act (EPEWA), became the gold standard for what pay transparency legislation looks like. Effective January 1, 2021, it requires employers to list pay ranges and benefits information in job postings — and to notify Colorado employees of internal promotion opportunities. No other state law at the time went as far.

Quick facts

Law

Colorado EPEWA (SB 19-085, as amended)

Effective date

January 1, 2021

Employer threshold

1 or more employees in Colorado (the lowest threshold of any state)

Applies to remote

Yes — if the role could be performed by a Colorado-based employee

Required: salary range

Yes — good-faith minimum and maximum compensation

Required: benefits

Yes — description of all benefits and other compensation (unique among state laws)

Required: promotions

Yes — must notify all Colorado employees of internal promotion opportunities

Minimum penalty

$500 per posting violation (mandatory)

Maximum penalty

$10,000 per violation

Enforced by

Colorado Division of Labor Standards and Statistics (DLSS)

The benefits-description requirement

Colorado is unusual in requiring a benefits description, not just a salary range. Your posting must describe “all of the benefits and other compensation to be offered to the hired applicant.” The Colorado DLSS has provided guidance that this includes:

• Health, dental, and vision insurance
• Retirement plans (401k, pension)
• Paid time off and sick leave
• Equity or stock options
• Bonuses or commission structures
• Other material benefits like parental leave, tuition reimbursement, etc.

You do not need to quantify every benefit in dollar terms — a descriptive list is sufficient. But you must disclose the categories of benefits that apply to the role.

The “exclude Colorado” mistake

When EPEWA took effect, several employers — including some major tech companies — added language to their remote postings saying the role was not available to Colorado residents. The DLSS issued guidance in 2022 clarifying that this exclusion is itself a violation of the law. The law applies to any employer with Colorado employees; using geography exclusions to avoid disclosure is an unfair employment practice under EPEWA.

The correct approach is to include the salary range and benefits description in all postings, regardless of whether you are trying to exclude Colorado applicants.

What is a valid salary range under EPEWA?

The range must be a “good-faith” estimate of what you expect to pay. DLSS enforcement actions have found that unreasonably wide ranges — such as posting $50,000–$300,000 for a role you intend to pay $90,000–$110,000 — do not satisfy the good-faith standard. The purpose of EPEWA is to give candidates meaningful information, not to technically satisfy the letter of the law with an uninformative range.

Internal promotion notifications

Colorado is the only US state that requires employers to notify existing employees of promotion opportunities before or simultaneously with posting externally. You do not have to interview every employee who expresses interest, but all Colorado employees must have a reasonable opportunity to learn about open positions they could be considered for.