How will Colorado’s equal pay law affect companies? |

How will Colorado’s equal pay law affect companies?

Nancy Reichman, a member of Colorado’s Pay Equity Commission joins in a rally in downtown Denver.
Denver Post file photo

Gov. Jared Polis signed equal pay legislation into law Wednesday, but it won’t take effect for another 19 months, leaving Colorado employers with time to limit their legal liability before 2021.

“We are fighting for women to be treated with the dignity, fairness and respect they deserve,” said Rep. Serena Gonzales-Gutierrez, a Denver Democrat, after the governor’s bill signing. “This new law is a Colorado solution that strikes a balance between workers and employers.”

Senate Bill 85 contained several business-friendly amendments that will safeguard some companies from lawsuits and give them ample time to come into compliance by moving enactment back to Jan. 1, 2021.

The new law allows employees who believe they are being paid less due to their gender to file a lawsuit within two years. Employers found to have paid someone less due to their gender must pay the amount the employee would have made the previous three years if there had not been discrimination.

There is a good-faith exception, however. The law says courts should not award additional payments to employees if the salary disparity was unintentional. It even tells companies how to prove good faith: by completing a thorough pay audit within its workforce in the years before being sued.

Read the full story via The Denver Post.

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