Illinois has stepped up its commitment to closing the gender pay gap by introducing pay transparency requirements for employers. Signed by Governor Pritzker on August 11, 2023, Bill HB3129 comes into effect on January 1, 2025.
In this article, we highlight Illinois Equal Pay Act amendments, and how employers can navigate these changes effectively.
The new wage transparency law applies to all Illinois employers with 15 employees or more, and affects positions that are:
Job posting requirements are changing. Key pay transparency requirements for the hiring process include the following:
Additional hiring process changes Illinois: While the current salary history ban remains in place, employers can ask candidates about their wage or salary expectations.
Penalties for non-compliance range from $500-$10,000 per violation for job postings active at the time of the violation.
Illinois Equal Pay Act Amendments also hint at an emerging trend; that of opportunity equity.
Opportunity equity is the practice of giving all workers equal access to opportunities for employment, development, and career advancement. That’s irrespective of their gender, race/ethnicity, age and other personal attributes.
Internal promotion opportunities are also included in Illinois’ pay transparency requirements. Employers must ensure “all current employees” are aware of all promotional opportunities no later than 14 calendar days after making an external job posting. Exactly which employees are covered is still unclear.
Illinois follows Colorado’s Amended Equal Pay Act in expanding promotion opportunities and workplace equality for all, but its efforts don’t stop there.
Make no mistake, Illinois is determined to close the gender pay gap and improve conditions for marginalized workers. In addition to stringent pay equity laws, Illinois is also a trail-blazer in making strides towards equal pay.
Alongside New Jersey, it is one of just two states aiming to ensure fair compensation and equal treatment of temporary workers. HB2862 significantly expands Illinois’ Day and Temporary Labor Services Act, and includes an equal pay mandate for temporary workers.
Signed on August 4, 2023, the bill came into effect immediately.
The latest pay transparency requirements cement the state’s position as one of the frontrunners in the pay equity movement.
Illinois joins numerous states and cities in introducing pay transparency requirements. Most recently Hawaii introduced pay transparency legislation, effective from 2024.
Pro-active employers can adopt strategies now to prepare for January 1, 2025 :
We strongly encourage all employers to commit to pay transparency. Including salary ranges in your job listings offers numerous benefits including:
Further, the introduction of HR1599, the Salary Transparency Act, means that no employer can afford to ignore potential pay transparency requirements. If successful, it will require all organizations, regardless of size or number of employees, to:
CTA: Your journey to equal pay starts with a pay equity audit. Speak to one of our experts today.
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