The Colorado Wage Transparency Act was created to prohibit employers from taking adverse actions against employees who discuss their wages with other employees or individuals outside of the business. The reasoning behind the Colorado Wage Transparency Act is that many employers have policies that prohibit employees from disclosing salary information to their co-workers. These policies are problematic under both Federal and state laws.
What is the Colorado Wage Transparency Act?
Colorado and several other states have enacted laws to promote pay transparency by prohibiting policies against pay disclosure. In 2008, Colorado enacted the Wage Transparency Act, which provides: 4-34-402. Discriminatory or unfair employment practices.
Specifics About the Colorado Wage Transparency Act
(1) The following actions are considered discriminatory or unfair employment practices under the Act:
(i) Unless permitted by federal law, it is unlawful for an employer to:
- Discharge, discipline, discriminate against, coerce, intimidate, threaten, or interfere with any employee or other person because the employee:
- Inquired about, disclosed, compared, or discussed their wages.
- Exercised their right to discuss wage information with others.
- Require employees, as a condition of employment, to:
- Refrain from disclosing their wages.
- Sign any agreement or document that denies them the right to disclose their wage information.
This law ensures that employees have the right to discuss their wages openly without fear of retaliation, protecting their ability to seek pay transparency.
Common Questions About the Colorado Wage Transparency Act:
- Can an employer tell you not to talk about pay in Colorado?
No, employers cannot prohibit employees from discussing their wages. The Colorado Wage Transparency Act protects your right to inquire about and discuss wage information, free from retaliation. - What is the Colorado Wage Act?
The Colorado Wage Act is separate from the Wage Transparency Act and focuses on ensuring employees are paid in a timely manner. While the Wage Transparency Act addresses wage discussions and protections from retaliation, the Wage Act deals with wage payment practices and disputes. Get more information on the Colorado Wage Act.
Important Note: This provision does not apply to employers who are exempt from the National Labor Relations Act (NLRA), 29 U.S.C. § 151 et seq.
Exemptions Under the Colorado Wage Transparency Act
Certain employers are exempt from the Act’s provisions, primarily those covered by the National Labor Relations Act (NLRA), 29 U.S.C. § 151 et seq. These employers may have different regulations concerning wage discussions and employee protections. Employers exempt from NLRA regulations do not have to comply with the disclosure rights and protections outlined in the Wage Transparency Act.
What Does the Colorado Wage Transparency Act Mean for Colorado Employers?
The Colorado Wage Transparency Act impacts employers by prohibiting them from implementing policies that prevent employees from discussing their wages. Employers cannot retaliate against employees who inquire about, disclose, or compare wage information. Additionally, they are not allowed to require employees to keep their wage details confidential as a condition of employment. Failure to comply with these provisions can lead to legal consequences, including claims of discrimination or unfair treatment.
While many Colorado employers may believe they can restrict wage discussions, such policies are often unlawful. Employers enforcing such policies could face legal action if they take adverse employment actions against employees for discussing or inquiring about pay. Employers should proceed with caution and seek legal guidance before enforcing policies that limit wage transparency.
What Legal Guidance Should Colorado Employers Seek?
To ensure compliance with the Colorado Wage Transparency Act, employers should:
- Review Internal Policies: Make sure that no policies restrict employees from discussing wages or penalize them for doing so.
- Consult Legal Counsel: Seek legal advice to understand any exceptions or specific nuances, particularly regarding exemptions under federal law (e.g., NLRA exemptions).
- Train Management: Educate supervisors and HR staff to handle wage discussions appropriately and avoid unintentional violations.
Stay ahead of compliance with the Colorado Wage Transparency Act by reviewing wage policies and supporting employees’ right to discuss their pay. Contact Baird Quinn LLC, Colorado’s Employment Lawyers for legal guidance today.