Illinois: New Expansion of Pay Disclosures

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APPLIES TO

Employers with 15+ IL Employees

EFFECTIVE

January 1, 2025

  

QUESTIONS?

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Quick Look

  • Illinois employers with 15 or more employees must include pay scale disclosures in job postings for external and internal job applicants.

Discussion

An amendment to the Illinois’ Equal Pay Act of 2003 will bring pay transparency requirements to Illinois job postings. HB 3129 is currently awaiting the Governor’s signature and expands the pay disclosures already required under the Equal Pay Registration Certificate (ERPC) process. Under the amendment, all open job positions posted by businesses with 15 or more employees would require pay scale disclosures. This includes a wage or salary or its range, a general description of benefits and other compensation (including, but not limited to, bonuses, stock options, and incentive-based compensation).

Employers can use a good faith-estimate; a reference to previously determined ranges for the position; the actual range for employees currently holding equivalent positions; and the budgeted amount for the position. Illinois employers are allowed to include a hyperlink to a publicly viewable webpage for the required disclosures. The disclosures also apply to internal applicants for promotional opportunities. An employer has 14 days after an external posting is available to announce, post, or make known to all current employees all promotional opportunities.

All positions that are actually performed in Illinois in whole or in part and where the employee reports to a supervisor, office, or other work site in Illinois will require the pay disclosures. Violations of the law can result in fines from $250 to $10,000 depending on the number of offenses. Current or former employees have the right to file a complaint with the Illinois Department of Labor (IDOL), and IDOL will also be empowered to conduct an investigation to enforce the law. Although the law does not take effect until 2025, employers should take the time to review their current pay practices in advance of compliance.

Action Items

  1. Review current pay practices across all positions.
  2. Review and update job postings.
  3. Have appropriate personnel trained on the requirements.
  4. 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