Illinois: Final Regulations Issued for Equal Pay Act Certification
|
APPLIES TO All Employers with 100+ IL Employees |
EFFECTIVE January 6, 2023
|
QUESTIONS? Contact HR On-Call |
Quick Look
|
Discussion
In 2021, Illinois amended its Equal Pay Act (IEPA) to require businesses with 100 or more employees in the state to obtain an equal pay registration certificate. The amendments required: 1) a $150 filing fee; 2) a wage records list of all employees categorized by gender, race, and ethnicity along with a copy of the most recent EEO-1 report; and 3) a signed statement from an officer affirming compliance. The Illinois Department of Labor (IDOL) has released the final regulations which provide some key clarifications.
Enrollment. Employers authorized to transact business in Illinois on or before March 23, 2021 must enroll online to confirm they are subject to the registration certification requirement and provide contact information. Employers authorized to transact business after that date must enroll by January 1 of the calendar year following the year they were authorized to do business in Illinois.
Employee Defined. Businesses have employees in Illinois if their base of operations or the place from which the service is directed or controlled is located within Illinois. This means remote employees whose work is directed or controlled from Illinois or employees who reside in Illinois are counted as Illinois employees to determine the coverage threshold.
Wage Records. Employees listed are those on the payroll beginning January 1 through December 31 in the year preceding the application due date. Employees should be listed separately by gender, race, and ethnicity in a searchable and sortable format. Employers must submit the mean hourly wage for hourly workers and the mean annual wage for salaried workers.
Average Compensation. Employers must certify the average wages for women and minority employees in their specific occupation in Illinois, as determined by the most recent U.S. Bureau of Labor Statistics State Occupational Employment and Wage Estimates publication, is not consistently below the average wages for male and non-minority employees.
Compliance. An officer must certify in writing that the business does not have any adverse judgments or administrative rulings against it for violations of the Title VII of the Civil Rights Act of 1964, the Illinois Human Rights Act, the Equal Wage Act, or the Equal Pay Act of 2003.
Employee Data Requests. Employees can submit a written request to IDOL for anonymized data about the pay for their own job title or classification. The data requested must be no more than 10 years prior to the date of the request.
IDOL will assign an application due date for each business required to submit a certification. A new certificate must be obtained every two years after the initial due date. Additional clarity is anticipated since these final regulations do not answer all outstanding questions raised by the amendments.
Action Items
- Review the final regulations here.
- Determine employee count for purposes of coverage.
- Compile information on employee wages, gender, and race/ethnicity.
- Have appropriate personnel trained on the requirements.
- Review application and data with legal counsel prior to submission.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2023 ManagEase