First Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 23-0061.01 Kristen Forrestal x4217 SENATE BILL 23-105 Senate Committees House Committees Business, Labor, & Technology 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 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. 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 - opportunities for17 promotion or advancement - pay rates in job listings. (1) An18 employer shall make reasonable efforts to announce, post, or otherwise19 make known all opportunities for promotion EACH JOB OPPORTUNITY 20 to all 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 AN EMPLOYER IS NOT REQUIRED TO23 ANNOUNCE, POST, OR OTHERWISE MAKE KNOWN A JOB OPPORTUNITY THAT24 IS LIMITED TO A PERIOD OF SIX MONTHS OR LESS AND IF THERE IS AN25 IMMEDIATE NEED TO HIRE A PERSON TO ENSURE ACCESS TO CHILD CARE OR26 EDUCATIONAL OPPORTUNITIES .27 105 -4- (2) AN EMPLOYER MUST IN GOOD FAITH DISCLOSE THE FOLLOWING1 IN THE NOTIFICATION OF EACH JOB OPPORTUNITY :2 (a) THE HOURLY OR SALARY COMPENSATION OR THE R ANGE OF THE3 HOURLY OR SALARY COMPENSATION ;4 (b) A GENERAL DESCRIPTION OF THE BENEFITS AND OTHER5 COMPENSATION APPLICABLE TO THE JOB OPPORTUNITY ; AND6 (c) T HE DATE THE APPLICATION WINDOW IS ANTICIPATED TO 7 CLOSE.8 9 (2) (3) An employer shall disclose in each posting for each job10 opening the hourly or salary compensation, or a range of the hourly or11 salary compensation, and a general description of all of the benefits and12 other compensation to be offered to the hired applicant. MAKE13 REASONABLE EFFORTS TO ANNOUNCE , POST, OR OTHERWISE MAKE KNOWN,14 WITHIN THIRTY CALENDAR DAYS AFTER A CANDIDATE WHO IS SELECTED15 TO FILL A JOB OPPORTUNITY BEGINS WORKING IN THE POSITION, THE16 FOLLOWING INFORMATION TO , AT A MINIMUM, THE EMPLOYEES WITH17 WHOM THE EMPLOYER INTENDS THE SELECTED CANDIDATE TO WORK WITH18 REGULARLY:19 (a) T HE NAME OF THE CANDIDATE SELECTED FOR THE JOB20 OPPORTUNITY; 21 (b) T HE SELECTED CANDIDATE'S FORMER JOB TITLE IF SELECTED22 WHILE ALREADY EMPLOYED BY THE EMPLOYER ;23 (c) T HE SELECTED CANDIDATE'S NEW JOB TITLE; AND24 (d) I NFORMATION ON HOW EMPLOYEES MAY DEMONSTRATE25 INTEREST IN SIMILAR JOB OPPORTUNITIES IN THE FUTURE, INCLUDING26 IDENTIFYING INDIVIDUALS OR DEPARTMENTS TO WHOM THE EMPLOYEES27 105 -5- CAN EXPRESS INTEREST IN SIMILAR JOB OPPORTUNITIES .1 (4) FOR POSITIONS WITH CAREER PROGRESSION , AN EMPLOYER2 SHALL DISCLOSE AND MAKE AVAILABLE TO ALL ELIGIBLE EMPLOYEES THE3 REQUIREMENTS FOR CAREER PROGRESSION , IN ADDITION TO EACH4 POSITION'S TERMS OF COMPENSATION, BENEFITS, FULL-TIME OR PART-TIME5 STATUS, DUTIES, AND ACCESS TO FURTHER ADVANCEMENT .6 (5) NOTHING IN THIS SECTION REQUIRES AN EMPLOYER TO7 IDENTIFY A SELECTED CANDIDATE FOR A JOB OPPORTUNITY IN ANY8 MANNER THAT VIOLATES THE CANDIDATE 'S PRIVACY RIGHTS UNDER9 APPLICABLE LOCAL, STATE, OR FEDERAL LAW OR IN A MANNER THAT10 WOULD PLACE AT RISK THE SELECTED CANDIDATE 'S HEALTH OR SAFETY.11 SECTION 4. Appropriation. (1) For the 2023-24 state fiscal12 year, $292,590 is appropriated to the department of labor and13 employment. This appropriation is from the general fund. To implement14 this act, the department may use this appropriation as follows:15 (a) $250,294 for use by division of labor standards and statistics16 for program costs related to labor standards, which amount is based on an17 assumption that the department will require an additional 2.1 FTE; and18 (b) $42,296 for the purchase of legal services.19 (2) For the 2023-24 state fiscal year, $42,296 is appropriated to20 the department of law. This appropriation is from reappropriated funds21 received from the department of labor and employment under subsection22 (1)(b) of this section and is based on an assumption that the department23 of law will require an additional 0.2 FTE. To implement this act, the24 department of law may use this appropriation to provide legal services for25 the department of labor and employment.26 (3) For the 2023-24 state fiscal year, $119,848 is appropriated to27 105 -6- the department of personnel for use by the division of human resources.1 This appropriation is from the general fund. To implement this act, the2 department may use this appropriation as follows:3 (a) $97,813 for personal services related to state agency services,4 which amount is based on an assumption that the department will require5 an additional 1.2 FTE; and6 (b) $22,035 for operating expenses related to state agency7 services.8 SECTION 5. Act subject to petition - effective date -9 applicability. (1) This act takes effect January 1, 2024; except that, if a10 referendum petition is filed pursuant to section 1 (3) of article V of the11 state constitution against this act or an item, section, or part of this act12 within the ninety-day period after final adjournment of the general13 assembly, then the act, item, section, or part will not take effect unless14 approved by the people at the general election to be held in November15 2024 and, in such case, will take effect on the date of the official16 declaration of the vote thereon by the governor.17 (2) Section 8-5-201, Colorado Revised Statutes, as amended in18 section 3 of this act, applies to promotions, career progressions, and19 career developments that take place on or after the applicable effective20 date of this act.21 105 -7-