New year, new amendments to the Illinois Equal Pay Act

Beginning January 1, important amendments to the Illinois Equal Pay Act will go into effect. Established in 2003, the Act aims to eliminate gender-based discrimination and ensure that employees are compensated equally for the work that they do, regardless of gender. The Act applies to Illinois employers with 15 or more employees and includes provisions that promote transparency and fairness in compensation practices.

Learn more below about changes to expect and how to handle these new requirements.

What will change

Pay and Benefits Disclosure

• All employers covered by the Act must include "pay scale and benefits” information in every job posting. This means that a salary range and general description of the benefits offered with the position must be included in the job posting. This applies to jobs performed at least partially in Illinois, or where the employee reports to an office, work site or supervisor in Illinois, even if the job is remote.

Broadened “Employee” Categories

• Coverage under the Act will be extended to include part-time employees and temporary workers. Thus, all employees of a company will benefit from the same pay equity protections as full-time employees.

Increased Penalties for Violations

• Penalties for non-compliance include a $250 fine for a first-time violation, a $2,500 fine for a second violation, and a fine of up to $10,000 for a third violation and subsequent violations. A harsher first-time violation fine of $500 applies if the job posting is active at the time a violation is determined.

Compliance measures

In order to comply with the new amendments, employers need to take several compliance measures to avoid potential litigation and penalties:

• Review all current job postings before January 1. Although there is a 14-day cure period to remedy active job postings, it is best to make sure that everything is up to date before the amendments take effect.
• Create pay ranges and benefits disclosures before posting new jobs.
• Make sure that your job posting information is consistent across platforms. For example, what you post on LinkedIn should be substantively consistent with what you post on your intranet.
• Securely store your documentation of all jobs posted. Make sure that all of the posting information is captured, including the date and time that the job was posted. You should also update your internal policies to help ensure that new protocols are being followed.
• Train the appropriate personnel, such as hiring managers and recruiters, about the new requirements.
• Consult with your employment counsel as needed.

A few final tips

Be sure to take down job postings as soon as the position has been filled or is no longer available. Outdated job postings could needlessly create legal risk for your company.

Perhaps most importantly, employers covered by the law should conduct regular pay audits if they are not doing so already. Pay audits can help to ensure that your compensation is competitive, identify potential discrimination issues, and identify any other discrepancies or areas for improvement.

If you need assistance in complying with these amendments, please contact any attorney in Constangy’s Chicago Office.