First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 23-0061.01 Kristen Forrestal x4217 SENATE BILL 23-105 Senate Committees House Committees Business, Labor, & Technology State, Civic, Military, & Veterans Affairs Appropriations Appropriations A BILL FOR AN ACT C ONCERNING THE IMPLEMENTATION OF MEASURES TO ENSURE EQUAL101 PAY FOR EQUAL WORK , AND, IN CONNECTION THEREWITH , 102 MAKING AN APPROPRIATION .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Current law authorizes the director of the division of labor standards and statistics in the department of labor and employment (director) to create and administer a process to accept and mediate complaints, to provide legal resources concerning alleged wage inequity, and to promulgate rules as necessary for this purpose. The bill changes HOUSE Amended 2nd Reading April 29, 2023 SENATE 3rd Reading Unamended April 13, 2023 SENATE Amended 2nd Reading April 12, 2023 SENATE SPONSORSHIP Danielson and Buckner, Coleman, Cutter, Exum, Fields, Gonzales, Hinrichsen, Jaquez Lewis, Marchman, Rodriguez, Sullivan, Winter F., Bridges, Fenberg, Ginal, Hansen, Kolker, Moreno, Mullica, Priola, Roberts HOUSE SPONSORSHIP Gonzales-Gutierrez and Bacon, Boesenecker, deGruy Kennedy, Froelich, Garcia, Jodeh, Joseph, Mabrey, Martinez, Michaelson Jenet, Ortiz, Story, Vigil, Willford, Woodrow Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. these authorizations to requirements. Additionally, the bill requires the director to: ! Investigate complaints or other leads concerning wage inequity; ! Upon finding of a violation, order compliance and relief; and ! Promulgate rules to enforce the bill. The bill also requires an employer to: ! For each job opportunity or promotional opportunity where the employer is considering more than one candidate, follow specific guidelines for posting the opportunity; ! For all job opportunities and promotional opportunities, provide specific information to employees regarding the candidate selected for the opportunity; and ! For all objectively defined career progressions, disclose the requirements for career progression and the terms of compensation, benefits, status, duties, and access to further advancement. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 8-5-101, add (1.3),2 (1.5), (5.5), and (8.5) as follows:3 8-5-101. Definitions. As used in this article 5, unless the context4 otherwise requires:5 (1.3) "C AREER DEVELOPMENT " MEANS A CHANGE TO AN6 EMPLOYEE'S TERMS OF COMPENSATION , BENEFITS, FULL-TIME OR7 PART-TIME STATUS, DUTIES, OR ACCESS TO FURTHER ADVANCEMENT IN8 ORDER TO UPDATE THE EMPLOYEE 'S JOB TITLE OR COMPENSATE THE9 EMPLOYEE TO REFLECT WORK PERFORMED OR CONTRIBUTIONS ALREADY10 MADE BY THE EMPLOYEE.11 (1.5) "C AREER PROGRESSION" MEANS A REGULAR OR AUTOMATIC12 MOVEMENT FROM ONE POSITION TO ANOTHER BASED ON TIME IN A SPECIFIC13 ROLE OR OTHER OBJECTIVE METRICS.14 (5.5) (a) "J OB OPPORTUNITY" MEANS A CURRENT OR ANTICIPATED15 105-2- VACANCY FOR WHICH THE EMPLOYER IS CONSIDERING A CANDIDATE OR1 CANDIDATES OR INTERVIEWING A CANDIDATE OR CANDIDATES OR THAT2 THE EMPLOYER EXTERNALLY POSTS .3 (b) "J OB OPPORTUNITY" DOES NOT INCLUDE CAREER DEVELOPMENT4 OR CAREER PROGRESSION.5 6 (8.5) "V ACANCY" MEANS AN OPEN POSITION , WHETHER AS A7 RESULT OF A NEWLY CREATED POSITION OR A VACATED POSITION .8 SECTION 2. In Colorado Revised Statutes, 8-5-103, amend (1)9 and (3) as follows:10 8-5-103. Enforcement - rules - complaints. (1) (a) The director11 is authorized to SHALL:12 (I) Create and administer a process to accept and mediate13 complaints and to provide legal resources concerning alleged violations14 of section 8-5-102 and to SHALL promulgate rules as necessary for this15 purpose;16 (II) O N OR BEFORE JULY 1, 2024, CREATE AND ADMINISTER A 17 PROCESS TO MEDIATE COMPLAINTS REGARDING ALLEGED VIOLATIONS OF18 SECTION 8-5-102 AND PROMULGATE RULES AS NECESSARY FOR THIS19 PURPOSE;20 (III) INVESTIGATE COMPLAINTS OR OTHER LEADS CONCERNING21 EMPLOYER VIOLATIONS OF SECTION 8-5-102, EXCEPT IF THE COMPLAINT22 CONCERNS THE STATE OF COLORADO AS THE EMPLOYER , THAT, IN THE23 DIRECTOR'S GOOD FAITH DISCRETION AND JUDGMENT , WARRANT24 INVESTIGATION;25 (IV) UPON FINDING OF A VIOLATION OF SECTION 8-5-102, ORDER26 COMPLIANCE AND RELIEF AS AUTHORIZED BY THIS PART 1; AND27 105 -3- (V) PROMULGATE RULES TO ENFORCE THIS ARTICLE 5.1 (b) F OR THE PURPOSE OF INVESTIGATING A VIOLATION OF THIS2 PART 1, THE DIRECTOR MAY APPLY THE INFORMATION -GATHERING3 PROVISIONS OF ARTICLE 1 OF THIS TITLE 8 TO AN EMPLOYER, EMPLOYEE,4 OR OTHER PERSON.5 (c) The process created and administered by the director,6 INCLUDING THE RULES FOR THE INVESTIGATION OF ALLEGED COMPLAINTS7 FOR VIOLATIONS OF SECTION 8-5-102 AND ANY FINES LEVIED OR8 CORRECTIVE ACTION TAKEN BY THE DIRECTOR , does not affect or prevent9 the right of an aggrieved person from commencing a civil action pursuant10 to subsection (2) of this section.11 (3) A person aggrieved by a violation of section 8-5-102 may12 obtain relief for back pay for the entire time the violation continues, not13 to exceed three SIX years.14 SECTION 3. In Colorado Revised Statutes, amend 8-5-201 as15 follows:16 8-5-201. Employment opportunities - job opportunities or17 advancement - pay rates in job listings - rules. (1) An employer18 shall make reasonable efforts to announce, post, or otherwise make19 known all opportunities for promotion EACH JOB OPPORTUNITY to all20 current employees on the same calendar day and prior to making a21 promotion decision THE DATE ON WHICH THE EMPLOYER MAKES A22 SELECTION DECISION; EXCEPT THAT, IF AN EMPLOYER IS ONLY PHYSICALLY23 LOCATED OUTSIDE OF COLORADO AND HAS FEWER THAN FIFTEEN24 EMPLOYEES WORKING IN COLORADO, ALL OF WHOM WORK ONLY25 REMOTELY, THEN, THROUGH JULY 1, 2029, THE EMPLOYER IS ONLY26 REQUIRED TO PROVIDE NOTICE OF REMOTE JOB OPPORTUNITIES . THE27 105 -4- DEPARTMENT OF LABOR AND EMPLOYMENT SHALL PROMULGATE RULES1 FOR TEMPORARY, INTERIM, OR ACTING JOB OPPORTUNITIES THAT2 NECESSITATE IMMEDIATE HIRE.3 (2) A N EMPLOYER MUST IN GOOD FAITH DISCLOSE THE FOLLOWING4 IN THE NOTIFICATION OF EACH JOB OPPORTUNITY :5 (a) THE HOURLY OR SALARY COMPENSATION OR THE R ANGE OF THE6 HOURLY OR SALARY COMPENSATION ;7 (b) A GENERAL DESCRIPTION OF THE BENEFITS AND OTHER8 COMPENSATION APPLICABLE TO THE JOB OPPORTUNITY ; AND9 (c) T HE DATE THE APPLICATION WINDOW IS ANTICIPATED TO 10 CLOSE.11 12 (2) (3) An employer shall disclose in each posting for each job13 opening the hourly or salary compensation, or a range of the hourly or14 salary compensation, and a general description of all of the benefits and15 other compensation to be offered to the hired applicant. MAKE16 REASONABLE EFFORTS TO ANNOUNCE , POST, OR OTHERWISE MAKE KNOWN,17 WITHIN THIRTY CALENDAR DAYS AFTER A CANDIDATE WHO IS SELECTED18 TO FILL A JOB OPPORTUNITY BEGINS WORKING IN THE POSITION, THE19 FOLLOWING INFORMATION TO , AT A MINIMUM, THE EMPLOYEES WITH20 WHOM THE EMPLOYER INTENDS THE SELECTED CANDIDATE TO WORK WITH21 REGULARLY:22 (a) T HE NAME OF THE CANDIDATE SELECTED FOR THE JOB23 OPPORTUNITY; 24 (b) T HE SELECTED CANDIDATE'S FORMER JOB TITLE IF SELECTED25 WHILE ALREADY EMPLOYED BY THE EMPLOYER ;26 (c) T HE SELECTED CANDIDATE'S NEW JOB TITLE; AND27 105 -5- (d) INFORMATION ON HOW EMPLOYEES MAY DEMONSTRATE1 INTEREST IN SIMILAR JOB OPPORTUNITIES IN THE FUTURE, INCLUDING2 IDENTIFYING INDIVIDUALS OR DEPARTMENTS TO WHOM THE EMPLOYEES3 CAN EXPRESS INTEREST IN SIMILAR JOB OPPORTUNITIES .4 (4) FOR POSITIONS WITH CAREER PROGRESSION , AN EMPLOYER5 SHALL DISCLOSE AND MAKE AVAILABLE TO ALL ELIGIBLE EMPLOYEES THE6 REQUIREMENTS FOR CAREER PROGRESSION , IN ADDITION TO EACH7 POSITION'S TERMS OF COMPENSATION, BENEFITS, FULL-TIME OR PART-TIME8 STATUS, DUTIES, AND ACCESS TO FURTHER ADVANCEMENT .9 (5) NOTHING IN THIS SECTION REQUIRES AN EMPLOYER TO10 IDENTIFY A SELECTED CANDIDATE FOR A JOB OPPORTUNITY IN ANY11 MANNER THAT VIOLATES THE CANDIDATE 'S PRIVACY RIGHTS UNDER12 APPLICABLE LOCAL, STATE, OR FEDERAL LAW OR IN A MANNER THAT13 WOULD PLACE AT RISK THE SELECTED CANDIDATE 'S HEALTH OR SAFETY.14 SECTION 4. Appropriation. (1) For the 2023-24 state fiscal15 year, $292,590 is appropriated to the department of labor and16 employment. This appropriation is from the general fund. To implement17 this act, the department may use this appropriation as follows:18 (a) $250,294 for use by division of labor standards and statistics19 for program costs related to labor standards, which amount is based on an20 assumption that the department will require an additional 2.1 FTE; and21 (b) $42,296 for the purchase of legal services.22 (2) For the 2023-24 state fiscal year, $42,296 is appropriated to23 the department of law. This appropriation is from reappropriated funds24 received from the department of labor and employment under subsection25 (1)(b) of this section and is based on an assumption that the department26 of law will require an additional 0.2 FTE. To implement this act, the27 105 -6- department of law may use this appropriation to provide legal services for1 the department of labor and employment.2 (3) For the 2023-24 state fiscal year, $119,848 is appropriated to3 the department of personnel for use by the division of human resources.4 This appropriation is from the general fund. To implement this act, the5 department may use this appropriation as follows:6 (a) $97,813 for personal services related to state agency services,7 which amount is based on an assumption that the department will require8 an additional 1.2 FTE; and9 (b) $22,035 for operating expenses related to state agency10 services.11 SECTION 5. Act subject to petition - effective date -12 applicability. (1) This act takes effect January 1, 2024; except that, if a13 referendum petition is filed pursuant to section 1 (3) of article V of the14 state constitution against this act or an item, section, or part of this act15 within the ninety-day period after final adjournment of the general16 assembly, then the act, item, section, or part will not take effect unless17 approved by the people at the general election to be held in November18 2024 and, in such case, will take effect on the date of the official19 declaration of the vote thereon by the governor.20 (2) Section 8-5-201, Colorado Revised Statutes, as amended in21 section 3 of this act, applies to job opportunities, career progressions, and22 career developments that take place on or after the applicable effective23 date of this act.24 105 -7-