Salary History Ban in Colorado: What Employers Can Ask

Federal law does not restrict employer inquiries into salary history. There is no federal statute equivalent to state salary history bans. The Equal Employment Opportunity Commission (EEOC) does not enforce salary history prohibitions, though federal pay discrimination laws (Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e; the Equal Pay Act of 1963, 29 U.S.C. § 206; the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 623) prohibit compensation decisions based on protected characteristics like race, sex, age, and national origin.

Federal law also does not restrict an employer's ability to ask about or verify previous wages as part of a reference check or background investigation. The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.) governs third-party background checks but does not prohibit salary history inquiries. As of now, approximately 20 states plus Washington D.C. have enacted salary history bans, but these are state-level protections only. Employers in states without salary history bans may freely inquire about prior compensation.

Colorado enacted one of the nation's first and strongest salary history bans under CRS 24-4-3(12), effective January 1, 2020. The statute explicitly prohibits employers from asking applicants or candidates about their salary history—defined as compensation, benefits, or other remuneration from prior employment. This ban applies to all employers with one or more employees in Colorado, regardless of the employer's size or principal place of business.

Colorado's law is significantly stronger than federal law because it creates an affirmative prohibition on salary history inquiries, whereas federal law is entirely silent on the practice. The state law protects job applicants at the point of hire, and Colorado courts have interpreted the statute to apply to external candidates and internal promotees. The ban covers inquiries made directly to applicants, through background check companies, from references, or through any third party acting on the employer's behalf.

Under CRS 24-4-3(12), an applicant may volunteer salary history information without legal consequence, and an employer may rely on that information if the applicant proactively discloses it. However, the employer may not prompt, encourage, or request such disclosure. Colorado law also permits employers to independently verify an applicant's prior compensation if that verification is not conducted at the employer's request—though in practice, this exception is narrowly construed.

Violations are enforced by the Colorado Civil Rights Division (CCRD), the state agency responsible for administering the Fair Employment Practices Act (CRS 24-4-1 et seq.). Employers who violate the salary history ban may be subject to civil penalties of up to $5,000 per violation, plus reasonable attorney's fees and costs awarded to the charging party. An applicant harmed by a violation can file a charge with the CCRD within six months of the alleged violation.

Colorado's salary history ban contains limited exceptions. First, an applicant may voluntarily and proactively disclose their own salary history without the employer requesting it; in this case, the employer may consider the information disclosed. Second, an employer may rely on information about an applicant's prior salary if the applicant affirmatively provides it in writing without being prompted. Third, employers may confirm salary information when responding to a subpoena, court order, or regulatory investigation, though they should not initiate such inquiries.

A fourth narrow exception permits employers to independently verify compensation information from public records or open-source databases without directly requesting it from the applicant. However, courts and the CCRD have construed this exception very narrowly; using background check vendors to pull salary history is generally prohibited because it constitutes an indirect request on the employer's behalf. Internal transfers and promotions are also subject to the salary history ban—employers cannot consider an internal candidate's prior compensation at the company when determining promotion or transfer compensation.

Colorado law does not exempt federal contractors, government employers, or any other class of employer. Even executive-level hires, highly compensated employees, and specialized roles are protected. The ban also applies regardless of whether the position is full-time, part-time, contract, or temporary. One important limitation: the salary history ban applies only to compensation inquiries; employers may still ask about job duties, achievements, skills, and non-compensation benefits from prior employment. Additionally, the ban does not prevent employers from setting compensation based on market benchmarks, job level, or other factors unrelated to the applicant's actual prior salary.

Step 1: Document the violation. If an employer asks you about your salary history—verbally, in writing, on an application form, or through a recruiter—document the date, time, method of communication, the person's name and title, and exactly what was asked. Keep emails, screenshots, text messages, or written notes. If asked during an interview, write down a summary immediately after while details are fresh. Save all application materials you submitted. If the inquiry came through a recruiter or staffing agency, note their name and contact information.

Step 2: Consider an internal complaint if the employer has one. Some Colorado employers have internal HR complaint procedures. If you are still in the hiring process or employed by the company, you may submit a written complaint to HR explaining that the employer violated CRS 24-4-3(12) by inquiring into your salary history and that you expect the violation to cease. Keep a copy for yourself. However, you are not required to complain internally first; you may proceed directly to the Colorado Civil Rights Division.

Step 3: File a charge with the Colorado Civil Rights Division. You have 6 months from the date of the alleged violation to file. Visit the CCRD website at civil-rights.colorado.gov or contact the agency at 1-303-894-2997. You can file online, by mail, or in person at 303 South Prospect Street, Suite 400, Fort Collins, Colorado 80525. The filing is free. In your charge, include: (1) your name, address, and phone number; (2) the employer's name, address, and phone number; (3) the date the violation occurred; (4) a description of what happened, specifically that you were asked about salary history; (5) the names of any witnesses; and (6) copies of any documentation (emails, application forms, notes). The CCRD will assign the charge an investigator.

Step 4: Expect the investigation process to take 60 to 120 days. The investigator will contact you for an interview and ask for additional details and documentation. The employer will also be contacted and given an opportunity to respond. The investigator will review relevant policies, application records, and any relevant communications. During investigation, you are protected from retaliation under CRS 24-4-3(1)(g). If the investigator finds probable cause that the employer violated the law, the case may proceed to a conciliation conference where the employer, you, and the investigator attempt to resolve the claim. If conciliation fails, the CCRD may issue a determination of violation. If the investigator finds no probable cause, you can request a Right to Sue letter and pursue a private lawsuit in Colorado district court.

Step 5: Consider consulting an employment attorney if the employer retaliates, if you are denied employment, or if you wish to pursue private litigation. An attorney can advise whether you have additional claims (such as discrimination or tortious discharge if you were already employed). Many employment attorneys in Colorado handle salary history ban claims on a contingency basis, meaning you pay no upfront fee if they recover damages on your behalf. Contact the Colorado Bar Association Lawyer Referral Service at 1-303-863-0008 or visit coloradobar.org for referrals.