November 30, 2022

Volume XII, Number 334

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Illinois Pay Transparency: Fast-Approaching Deadlines And Enforcement Dates

Highlights

  • Compliance deadlines for Illinois Equal Pay Act amendments are quickly approaching 

  • Employers with more than 100 employees must fulfill the new requirements by March 23, 2023, unless the business commenced operations after March 31, 2021

  • Other states are creating salary transparency laws for private employers to ensure pay equity among employees regardless of gender, race, or ethnicity

In 2021, Illinois announced amendments to its 2003 Equal Pay Act to ensure pay equity among employees and prohibit pay discrimination on the basis of sex or racial identity. 

Any prior employer with 100 or more employees in Illinois and that is required to submit an annual EEO-1 report to the Equal Employment Opportunity Commission is now required to submit an application to the Illinois Department of Labor to obtain an equal pay registration certificate.

Other states followed suit and some application deadlines are approaching.

In Illinois, the application includes: 

  • The employer’s most recently filed EEO-1 Report

  • A complete list of employees during the last calendar year, separated by gender, race and ethnicity, along with the employee’s starting date, county where work is performed and wages for the last year

  • A signed Equal Pay Compliance Statement attesting to the employer’s compliance with applicable civil rights laws and the specific requirements of the Illinois law with respect to equity in average pay, or corrections to achieve equity; equitable access to job classifications, and opportunities for retention and promotion; and how wages and benefit are evaluated and disparities corrected.

Employers authorized to operate in Illinois after March 31, 2021, must submit an application within the first three years of operation, but no sooner than Jan. 1, 2024. Those authorized to operate in Illinois on or before March 31, 2021, must file their application between March 24, 2022, and March 23, 2024. If employers have multiple locations within the state, only one application for the registration certification is required. 

Colorado, Connecticut and Nevada already have laws that require private employers to provide some level of pay transparency. Other states are joining in:

California

The first state to legislate pay transparency, the California legislature has passed a new law requiring employers with 15 or more employees in the state to post salary ranges, including third parties whom the employer engages for job postings. Employers with more than 100 employees in the state also must demonstrate their mean and median pay data by gender, ethnicity, and racial categories. This legislation awaits signature by Gov. Gavin Newsom. If signed it will become effective Jan. 1, 2023.

New York 

In New York State, statewide pay transparency legislation requiring employers to disclose job compensation range in position postings awaits the signature of Gov. Kathy Hochul. Ithaca, New York City, and Westchester County already have passed legislation requiring employers and employment agencies to include the salary maximum and minimum when posting jobs, promotions, or transfer opportunities. The compliance deadlines for these cities and counties differ, but all will take effect before the end of 2022. 

Rhode Island

Beginning Jan. 1, 2023, employers must provide salary ranges to applicants who request the information and to employees at the time of hire, at the employee’s request, or when an employee move into a new role. 

Washington 

Beginning Jan.1, 2023, employers in the state of Washington , with 15 or more employees, must disclose on job postings the salary range, including a description of all benefits and other compensation. 

© 2022 BARNES & THORNBURG LLPNational Law Review, Volume XII, Number 266
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About this Author

Norma W. Zeitler, Barnes Thornburg Law Firm, Chicago, Employment Law Attorney
Partner

Norma W. Zeitler is a partner in the Chicago office of Barnes & Thornburg LLP and a member of the Labor and Employment Department and the Associations and Foundations Practice Group. She concentrates her practice on employment law, and represents employers in the defense of employment discrimination, retaliatory discharge, breach-of-contract, workplace tort, and restrictive covenant cases in federal and state courts and administrative agencies. She also provides day-to-day counseling for employers on all matters that impact the employment relationship.

...
312-214-8312
Charity Seaborn Labor and Employment Attorney Chicago
Associate

Charity Seaborn’s path to becoming a labor and employment attorney includes serving as director of human resources and in other roles for a private university for nearly seven years before entering law school. With a passion for helping enterprises of all sizes and their workforces grow and succeed, she advises on employment and labor relations matters.

Charity applies her unique skill set as former HR director and Title IX coordinator at Roosevelt University to guide clients through wage and hour claims, status classification and...

312-214-4827
Kenneth J. Yerkes Employment lawyer Barnes Thornburg
Partner

Chair of the firm’s Labor and Employment Department for two decades, Ken Yerkes has spent over 30 years successfully fighting for his clients' rights and business objectives at the bargaining table, in arbitration and federal and state court, as well as in plants across the country through proactive training, counseling and union avoidance campaigns.

Ken's ability to transform complex scenarios into workable strategies has earned him not only his clients' trust, but also acclaim as one of the country’s recognized leaders in labor and employment law. He is a fellow...

317-231-7513
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