What is The Colorado Equal Pay for Equal Work Act (EPEWA)?
Colorado is introducing a new wage discrimination law, the Colorado Equal Pay for Equal Work Act (“EPEWA”), which becomes effective January 1st, 2021. The EPEWA will apply to all private and public employers. The EPEWA prohibits wage discrimination on the basis of sex or sex combined with another protected class, such as disability, race, religion, creed, color, age, or sexual orientation. Under EPEWA, any wage disparities must be accounted for entirely under six explicit conditions:
(1) a seniority system;
(2) a merit system;
(3) a system that measures earnings based on quantity or quality of production;
(4) the geographic location where the work is done;
(5) related education or training; and
(6) if there is work-related travel.
How is EPEWA Different?
EPEWA is different from prior wage discrimination laws as it does not allow either intentional or unintentional wage disparities and it does not allow past wage discriminations to be grandfathered in. Instead, companies are given incentives to proactively self-audit their past compensation packages to ensure that no prior pay disparities persist. If a company proactively performs these good faith audits, they may be protected from liquidated damages assessed from unintentional disparities between wage earners.
Why Was It Implemented?
EPEWA was introduced with the goal of ensuring that all employees with similar job descriptions are paid the same wage regardless of sex, but can be difficult to implement for the first time for small businesses.
How Is Compliance Handled?
Implementing new wage and compensation policies as well as completing wage audits every two years can ensure companies follow the statute and are protected from potential future damages. It is best to talk to an attorney about making sure that you are in compliance.
Reach out to Polaris Law Group if you have additional questions on the new EPEWA.
By Rebecca Colvin
