State cracks down on companies skirting Colorado financial transparency law

DENVER, Colo. (KRDO) -- In Colorado, job seekers can expect to see salary ranges posted for positions thanks to the Equal Pay Equal Work Act. The act, which passed in 2019 and went into effect in January 2021, requires employers to list salary ranges for job positions.

While the transparency helps potential employees, some employers weren't thrilled about the act. Some even flat out refused to adhere to the requirements.

At one point, the state says companies were reportedly blacklisting Coloradans to get around the financial transparency law.

At its peak, The Colorado Department of Labor and Employment (CDLE) found roughly 1,000 job postings that were breaking the law.

The state has since taken action against companies in violation. Letters were sent out, threatening to fine anyone who did business in Colorado without disclosing what they'll pay.

CDLE Labor Standards and Statistics Director Scott Moss told KRDO there are now only about 100 postings after the state took action.

"I literally hired a temp just to find such postings and send letters to these companies and track the responses and it's gone really well," he said. "We've basically taken what had been a misperception of a loophole that was leading companies to exclude from their own talent pool and exclude Coloradans. It's heartening that when given good information, companies have substantially stopped doing this."

Moss thinks there has been a mixed reaction to the law. Hourly wages in Colorado are up 11% since the law took effect, compared to 7% across the country. Employers, though, argue that salary transparency encourages job jumping.

So far three companies have been issued fines; one in Aurora, one in Denver, and a third based in California.

Moss says it's less about punishing and more about getting the salaries posted.

"Our view has been this is still a relatively new law. We want to give companies chances."