Compliance Ideas for New Illinois Pay Transparency Regulation

​Illinois employers will be expected to reveal salary information and facts in work postings thanks to a new regulation that was recently finalized.

On Aug. 11, Gov. J.B. Pritzker passed into law amendments to the Illinois Equal Spend Act that will require coated corporations to supply pay scale and benefits facts in their work postings for positions that will be physically executed, at least in aspect, in Illinois, or positions that will be physically done outdoors of Illinois if the personnel reviews to a supervisor, workplace, or other worksite in the state.

Despite the fact that the legislation will not just take result until eventually Jan. 1, 2025, there is some advance function you can do to get ready for this considerable alter in pay transparency.

5 Points You Need to have to Know

The new law amends the Illinois Equal Shell out Act in 5 substantial strategies:

1. New Career Putting up Specifications: Protected corporations will be demanded to present the wage or salary, or the wage or salary selection, and a general description of the positive aspects and other compensation the employer reasonably expects to offer you for positions that will be bodily executed, at least in aspect, in Illinois, or positions that will be physically carried out outdoors of Illinois, but the staff studies to a supervisor, business office, or other worksite in Illinois in their occupation postings. Moreover, the legislation necessitates covered companies to announce, article, or in any other case make acknowledged all job opportunities to all latest workers no later on than the exact working day that the work is posted.
2. Disclosure of Shell out Scale and Rewards to Candidates: While the legislation will not need employers to make a job submitting, businesses will be expected to disclose to an applicant the fork out scale and gains to be made available for the position prior to any give or discussion of compensation and at the applicant’s ask for.
3. Recordkeeping Needs: The legislation will involve businesses to protect information of the pay out scale and benefits details for just about every posted posture for at the very least five decades. In the event of an ongoing investigation, even so, businesses will will need to keep them right up until the state Department of Labor or a court docket get authorizes their destruction.
4. Prospective Liability for Third Bash Work Postings: Illinois businesses should function carefully with any 3rd bash they use to guide with work postings and recruitment mainly because the law retains businesses liable for a third party’s failure to consist of the spend scale and gains information and facts in a task submitting on their behalf. Businesses will have to present the fork out scale and positive aspects, or a hyperlink to the shell out scale and benefits, to the third get together to include things like in the task submitting.
5. Severe Penalties for Violations: If the Illinois Office of Labor determines a violation has happened, the employer will have seven days to treatment the violation on getting observe of a violation, or it will be issue to a civil penalty of $100 for every working day for every single working day that a violation continues. Each work putting up that fails to comply with the regulation will be viewed as a separate violation.

Your Compliance Blueprint

Whilst the regulation does not choose impact till Jan. 1, 2025, Illinois companies must get a head get started on compliance and take into account the following techniques: 

• Begin examining your task postings to guarantee they will comply with the new prerequisites.
• Practice your choosing managers, expertise acquisition pros, and HR workforce on the new specifications.
• Create a common evaluation method, so that you can appraise and update your payment and advantages on a routine basis and change as essential.
• Coordinate with any 3rd occasion you use to guide with position postings to assure they are informed of and will comply with the new regulation after it requires outcome.
• Conduct a privileged shell out audit with counsel to make certain compliance with point out and federal equivalent pay out demands.
• Take into consideration functioning with your counsel to develop a standardized pay scale format to assure you comply with fork out fairness principles.

If you have operations in states that do not require pay back transparency, contemplate whether or not you will adopt a patchwork approach or a uniform strategy to career postings in those other states. There are professionals and cons to every method, but you will want to perform with your lawful counsel to comprehend your choices.

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