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  • In an effort to promote fairness and transparency in the workplace, the Colorado Department of Labor and Employment is taking significant steps by using proposed Equal Pay Transparency (EPT) Rules. These rules aim to provide clarity regarding Colorado’s Ensure Equal Pay Act for Equal Work Act, which becomes effective on January 1st, 2024. The Act, which amended the state’s pay transparency statute, brings much-needed attention to the issue of pay equity and gender discrimination in the workplace. Continue reading to learn more about the proposed rules and how they seek to bring clarity to the Act’s ambiguities.

    Career Development: A Step Forward

    One of the key areas addressed in the proposed rules is the definition of “career development.” Under the Act, employers are required to announce job opportunities, but this obligation does not extend to “career developments.” The Act defines career development as changes to an employee’s terms of compensation, benefits, full or part-time status, duties, or access to further advancement to update the employee’s job title or compensation. The proposed rules clarify that these changes should be related to the employee’s existing job and should not be within a position with a current or anticipated vacancy. This clarification ensures that employees are informed about potential advancements within their current roles.

    Career Progression: Setting The Right Path

    Career progressions are exempted from the definition of “job opportunity” and are described as regular or automatic movements from one position to another based on time or objective metrics. The proposed rules require employers to disclose and make available to all “eligible employees” the requirements for career progression and the terms of compensation, benefits, and other details of the new position. “Eligible employees” are those who, upon meeting the notice’s requirements, would move from their position to the other as a “career progression.” This ensures employees are informed about their potential advancement paths, fostering transparency and equality.

    Application Deadlines: Navigating The Gray Areas

    The Act mandates that job postings include an application deadline, which led to confusion surrounding evergreen job postings and extensions of application deadlines. The proposed rules provide two exceptions to the deadline requirement. If an employer accepts applications on an ongoing basis, the application must state this, and a deadline does not need to be included. In addition, an application deadline may be extended, provided the original deadline was made in good faith, and the posting is updated promptly. These exceptions offer practical solutions and flexibility to employers while ensuring transparency and fairness in the hiring process.

    AINT Hires: Balancing Flexibility And Transparency

    In the proposed rules, Acting, Interim, or Temporary (AINT) hires are considered when no immediate job opportunity posting is required for up to nine months. This applies when the hiring is not expected to be permanent. In such cases, a job opportunity posting must be made in time for employees to apply for the permanent position if the AINT hire becomes permanent. The proposed rules extended the duration of an AINT role from six to nine months, offering a balanced approach that allows employers to respond to immediate needs while ensuring employee transparency.

    Post-Selection Notice To Employees: Defining Regular Work Relationships

    The Act stipulated that employers must distribute post-selection notices to employees with whom the selected candidate will regularly work. The proposed rules clarify this by defining “work with regularly” as employees who either collaborate or communicate about their work at least monthly or have a reporting relationship. Employers are encouraged to provide notices to a broader range of employees or multiple selections at once as long as they do so within 30 days after any selection. These modifications simplify the process, making it more manageable for employers while ensuring that the right employees receive the necessary information.

    Geographic Boundaries

    The proposed rules outline a pragmatic approach by exempting employees outside of Colorado from notice requirements related to pre-selection, post-selection, and career progression. This adjustment streamlines the process for businesses with a multi-state presence, offering a more efficient way to manage compliance efforts and ensuring the rules have the desired impact where they are most relevant.

    The Importance Of Outsourcing

    As a small business owner in Colorado, you face the challenge of adapting to the new Equal Pay Transparency rules while maintaining growth and competitiveness. However, outsourcing these efforts to a professional employer organization (PEO) like GMS might be the solution you’re looking for. PEOs specialize in HR management, compliance, and employment regulations, offering expertise to ensure businesses comply with these new rules.

    By partnering with GMS, small businesses can access a range of HR services, from job posting compliance to transparent compensation and career development strategies. This partnership not only facilitates compliance but also frees up business owners to focus on growing their ventures. In a changing regulatory environment, the assistance of a PEO has become a vital asset for small businesses seeking to uphold the principles of equal pay transparency while pursuing their business growth objectives. Contact our HR experts today to learn more.

  • Illinois is on track to become the next state to enforce pay transparency laws by mandating the disclosure of pay scales in job postings, strengthening its commitment to pay equity. While the Illinois Equal Pay Act has been around for a decade, it’s seen many changes within the past few years. The Illinois Equal Pay Act is one of the country’s most demanding pay transparency statutes because it requires employers with 100 or more employees in Illinois to submit employee pay data and a signed compliance statement to obtain an Equal Pay Registration Certificate (EPRC). All employees regardless of sex or race, who perform substantially similar skills, effort, and responsibility must receive the same wage rate.

    Diving Deeper Into The Act

    In 2021, the act was amended to impose new equal pay compliance requirements and create new obligations for private employers with more than 100 employees. Then, in 2022, the Illinois Department of Labor finally provided some guidance for employers on those new requirements. Most recently, on February 16th, 2023, Illinois legislators introduced a new pay equity bill that would amend the act again and require organizations with at least 15 employees to include benefits and pay scale information in job postings. Pay scale and benefits include the wage or salary, or the wage or salary range, and a general description of the benefits and other compensation the employer reasonably expects to offer for the position.

    Understanding The Latest Changes

    The 2023 bill, HB3129, or Equal Pay Transparency Act, is making its way through the Illinois House quickly. If passed and signed into law, it would again amend the Illinois Equal Pay Act and substantially change how employers post jobs in Illinois. The following are changes you’d be required to implement if passed:

    • Disclose the salary range for any job opening
    • Include a description of the benefits and other compensation offered with the position, such as health care, retirement benefits, and paid time off (PTO)
    • Include a statement in job postings indicating that they do not discriminate based on gender, race, or any other protected characteristic 
    • Provide this information to employees who are being considered for promotions or transfers within the company 

    This would help ensure that employees are aware of the salary range for the position they are being considered for and any other compensation or benefits that may be offered. The gender pay gap has been a longstanding issue in Illinois and across the country. According to the National Women’s Law Center, on average, women in Illinois earn just 80 cents for every dollar earned by men. This gap stretches even farther for women of color, with African American women making just 64 cents and Latina women earning 52 cents for every dollar earned by white, non-Hispanic men.

    Don’t Wait; Start Now!

    While we wait for the decision of the latest Equal Pay Transparency Act in Illinois, take action now to get ahead of your competition. Partnering with a professional employer organization (PEO) such as GMS will help you every step of the way. We help Illinois businesses prepare for this bill’s implementation by providing guidance on best practices for pay equity and compliance.

    At GMS, our HR experts can conduct a pay equity audit to identify any pay disparities that may exist within your organization. In addition, we help develop a compensation strategy that’s consistent with the requirements of the new law, which includes the following:

    • Developing salary ranges for job positions 
    • Review benefits packages
    • Ensure job postings include the required information 

    We aim to keep you up to speed on the latest changes to ensure you remain compliant. The last thing we want is for you to incur a significant find due to overlooking a detail in the updated regulations. Contact us today to learn how we can protect your business.