Governor Pritzker Expected to Sign Pay Transparency Bill
June 16, 2023
Governor Pritzker is expected to sign House Bill 3129 (HB 3129), recently passed by both houses of the Illinois legislature.
The new law will amend Illinois’ Equal Pay Act of 2003 and will require employers with 15 or more employees to disclose “pay scale and benefits” in job postings.
“Pay scale and benefits” is defined as “the wage or salary, or the wage or salary range, and a general description of the benefits and other compensation … the employer reasonably expects in good faith to offer for the position.”
Employers will be required to provide pay scale and benefits information in each job posting or provide a hyperlink in each job posting to a public webpage that lists all required disclosures.
The disclosure requirement applies to an employer that “engages a third party to announce, post, publish, or otherwise make known a job posting.”
The disclosure requirement applies not only to positions physically performed in Illinois but also to positions that are physically performed outside of Illinois by an employee who reports to a supervisor, office or work site in Illinois.
The disclosure requirement also requires that employers notify their current employees of any promotion opportunities for positions that will be performed in Illinois or supervised by a person in Illinois, within 14 days after the job posting is posted externally.
Employers are required to maintain records of pay scales and benefits for 5 years, including the name, address, occupation, wages paid to each employee, the pay scale and benefits for each position, and the job posting for each position.
Employers are prohibited from retaliating against a job applicant or employee that exercises their rights under the new law.
Civil Penalties to be Assessed Against Employers for Non-Compliance With the New Law
Each non-compliant job posting is a separate violation, which may result in civil penalties from the Illinois Department (IDOL). Job applicants and employees have up to 1 year from the date of the alleged violation to bring a claim against their employer. If the IDOL determines a violation has occurred, it must notify the employer of the violation and provide it with an opportunity to remedy the violation. If the employer fails to remedy the violation, the IDOL may levy a fine against the employer of up to $500.00 for a first violation, up to $2,500.00 for a second violation, and up to $10,000.00 for third and subsequent violations.
Effective Date of Anticipated New Law
If signed into law, HB 3129 will go into effect on January 1, 2025.
If you have any questions about these anticipated requirements or need assistance in navigating the Equal Pay Act of 2003, please contact any of the attorneys in GCT’s Employment Law Practice Group.