On August 11, 2023, Governor J.B. Pritzker signed an amendment to the Illinois Equal Pay Act that mandates new pay transparency requirements for most Illinois employers.
New Pay Transparency Requirements
Effective January 1, 2025, the amendment requires all public and private employers in Illinois with 15 or more employees to provide pay scale and benefits information in all open job postings. This means that covered employees must provide the following information for each posted position:
- The Pay Scale. Employers may use the previously determined salary range for the position, the actual salary range of employees currently holding the position, or the budgeted amount for the position.
- The Benefits. Employers may provide a general description of the applicable benefits and other compensation, including, without limitation, bonuses, stock options or other incentives the employer reasonably expects, in good faith, to offer for the position.
To satisfy this disclosure requirement, employers may include a hyperlink to a publicly viewable webpage that includes the relevant pay scale and benefits.
Covered Positions, including Remote Employees
The new pay transparency requirements apply to job positions that will be physically performed, at least in part, within Illinois. The disclosure requirements also apply to positions that will be performed outside of Illinois if the employee reports to a supervisor, office or other worksite within the state.
Promotional Opportunities for Current Employees
Employers are required to announce to current employees all opportunities for promotion no later than 14 calendar days after the external job posting is made.
Third-Party Job Postings
Employers who hire third parties to “announce, post, publish, or otherwise make known a job posting” must provide the pay scale and benefits to the third party or a compliant hyperlink for such postings. In these instances, the third party is liable for failing to include the pay scale and benefits in the job posting, “unless the third party can show that the employer did not provide the necessary information.”
Recordkeeping Compliance
The amendment requires employers to make and maintain records of the pay scale and benefit information for each position, and the job posting for each position. These records must be kept for at least five (5) years.
Anti-Retaliation
Employer and employment agencies are forbidden from retaliating against or refusing to interview, hire, promote, or employ any applicant for employment for exercising his or her rights under the new law.
Enforcement and Penalties
The Illinois Department of Labor (IDOL) is empowered to enforce the pay transparency requirements and may initiate an investigation at its discretion or upon receipt of a complaint from an aggrieved current or former employee.
If the IDOL determines that a violation has occurred, it will issue a notice of violation to the employer setting forth the applicable penalty and the applicable period to cure the first (14 days) and second (7 days) offenses. Fines for violating the disclosure requirements range from $250 for a first-time offense involving an inactive job posting to $10,000 for a third or subsequent offense. Employers will incur automatic penalties without a cure period for five years following a third or subsequent offense.
Next Steps
Employers with workers, offices, or work sites based in Illinois, or those who have employees reporting to supervisors, offices, or work sites in Illinois, should review covered job postings and align workplace policies to comply with the new requirements.