Although Governor J.B. Pritzker signed the amendment to the Illinois Equal Pay Act on August 11, 2023, Illinois Employers need to remember that new pay transparency requirements will go into effect on January 1, 2025. 

Who is impacted? All public and private employers in Illinois with 15 or more employees.

What is required? All covered employers are to provide pay scale and benefits information in any job posting.

What type of information should be included?

Pay Scale: Employers can use the previously determined range for the position, the actual range of others currently holding equivalent positions, or the budgeted amount for the position.

Benefits: Employers can provide a general description of the benefits and other compensation, including but not limited to, bonuses, stock options, or other incentives an employer reasonably expects in good faith to offer for the position.

Employers may also satisfy this new requirement by including a hyperlink to a publicly viewable webpage that includes the pay scale and benefits information. 

What positions are covered?

The new requirements apply to positions: (1) that will be physically performed, at least in part, in Illinois; or (2) that will be physically performed outside of Illinois, but the employee reports to a supervisor, office, or other work site in Illinois.

What are the additional requirements?

Employers are required to announce, post, or otherwise make known all opportunities for promotion to all current employees within 14 calendar days after an employer makes an external job posting for the position.

Employers are required to make records of the pay scale and benefit information for each position, and the job posting for each position, and maintain the records for a period of at least five (5) years.

If an employer uses a third-party to “announce, post, publish, or otherwise make known” a job posting, the employer shall provide the pay scale and benefits, or a hyperlink to the pay scale and benefits, to the third-party. In such an instance, the third-party will be liable if the job posting does not properly contain the pay scale or benefits information, unless it can be shown that the employer did not provide the necessary information.

An employer is prohibited from retaliating against or refusing to interview, hire, promote or employ any applicant for employment for exercising his or her rights under the requirements. 

What happens if an employer does not comply?

The Illinois Department of Labor, may initiate an investigation at its discretion or upon receipt of a complaint from an aggrieved individual. If the Illinois Department of Labor determines a violation has occurred, it will issue a notice of violation to the employer setting forth the violation, the applicable penalty and the period to cure the violation (if any). 

For active job postings, a first time violation will have a cure period of 14 days, and shall not exceed a fine of $500. A second violation will have a cure period of 7 days and a fine not to exceed $2,500. A third or subsequent violation, will not have a cure period, and a fine shall not exceed $10,000.

For inactive job postings, the penalties will range from $250 for a first offense, to $10,000 for a third or subsequent offense.