Compliance Recommendations for New Illinois Pay Transparency Regulation

Compliance Recommendations for New Illinois Pay Transparency Regulation

​Illinois businesses will be necessary to expose wage details in work postings many thanks to a new legislation that was just lately finalized.

On Aug. 11, Gov. J.B. Pritzker passed into regulation amendments to the Illinois Equivalent Fork out Act that will demand lined companies to present pay back scale and added benefits information in their work postings for positions that will be bodily executed, at the very least in element, in Illinois, or positions that will be bodily executed outside of Illinois if the staff experiences to a supervisor, office, or other worksite in the condition.

Although the regulation will not choose impact until eventually Jan. 1, 2025, there is some progress perform you can do to put together for this important alter in pay back transparency.

5 Points You Need to have to Know

The new law amends the Illinois Equal Pay Act in five important means:

  1. New Occupation Submitting Prerequisites: Coated companies will be essential to present the wage or income, or the wage or salary vary, and a normal description of the benefits and other compensation the employer fairly expects to offer you for positions that will be physically performed, at the very least in portion, in Illinois, or positions that will be physically executed outside of Illinois, but the staff experiences to a supervisor, business, or other worksite in Illinois in their career postings. Also, the law calls for lined corporations to announce, submit, or if not make recognized all task opportunities to all existing personnel no afterwards than the exact same working day that the career is posted.
  2. Disclosure of Shell out Scale and Gains to Candidates: While the regulation will not call for employers to make a job posting, employers will be required to disclose to an applicant the pay back scale and benefits to be presented for the position prior to any supply or discussion of compensation and at the applicant’s ask for.
  3. Recordkeeping Necessities: The legislation will have to have employers to protect information of the pay scale and gains information for each individual posted position for at minimum five several years. In the party of an ongoing investigation, even so, companies will require to keep them until the state Division of Labor or a court docket order authorizes their destruction.
  4. Prospective Liability for Third Celebration Task Postings: Illinois employers need to function closely with any third get together they use to assist with task postings and recruitment simply because the legislation holds employers liable for a 3rd party’s failure to include things like the pay back scale and advantages information in a job submitting on their behalf. Employers will have to give the pay back scale and positive aspects, or a hyperlink to the spend scale and added benefits, to the third party to involve in the task putting up.
  5. Serious Penalties for Violations: If the Illinois Division of Labor determines a violation has occurred, the employer will have seven times to cure the violation upon receiving recognize of a violation, or it will be issue to a civil penalty of $100 for each day for every working day that a violation proceeds. Every single position posting that fails to comply with the law will be viewed as a different violation.

Your Compliance Blueprint

While the regulation does not take result till Jan. 1, 2025, Illinois companies must get a head start off on compliance and consider the adhering to measures: 

  • Start off examining your position postings to be certain they will comply with the new demands.
  • Practice your employing managers, talent acquisition experts, and HR personnel on the new necessities.
  • Build a standard evaluation course of action, so that you can assess and update your compensation and rewards on a routine foundation and modify as needed.
  • Coordinate with any third celebration you use to guide with position postings to assure they are knowledgeable of and will comply with the new legislation as soon as it can take impact.
  • Carry out a privileged shell out audit with counsel to make certain compliance with point out and federal equal pay back demands.
  • Consider operating with your counsel to create a standardized shell out scale format to be certain you comply with fork out fairness concepts.

If you have operations in states that do not need pay back transparency, contemplate regardless of whether you will undertake a patchwork tactic or a uniform method to occupation postings in those other states. There are professionals and negatives to every single approach, but you will want to function with your legal counsel to understand your options.

Jessica D. Causgrove and Shane Stover are attorneys with Fisher Phillips in Chicago. © 2023. All rights reserved. Reprinted with authorization.