Lorna Geiler Labor Law E-Bulletin: Illinois Equal Pay Act Changes

On January 1, 2025, certain amendments to the Illinois Equal Pay Act go into effect and apply to employers with 15 or more employees. The changes really center around the provision of information to applicants. Most significantly, job postings must include the pay scale for the position. This posting of the pay scale requirement may be satisfied by including within the posting a hyperlink to a publicly viewable webpage with the necessary information. In addition, if candidates are not shown a job posting, or if they request it, pay scale information must be given prior to any offer or compensation discussion. Current employees must be notified of an opportunity for promotion within two weeks of any external posting for the same position.

“Pay scale” is the wage or salary, the wage or salary range and a general description of benefits or other forms of compensation, to include, bonuses, stock options and other incentives being offered with the position.

The statute applies to positions that are either physically, in whole or in part, performed in Illinois, or, while not physically performed in Illinois, employees report to a supervisor office or worksite in Illinois. Of particular note, the Equal Pay Act Amendment cannot be avoided by using third parties, such as Indeed and LinkedIn. Instead, the advertising employer is required to provide the necessary information to the third-party recruiter or liability remains with the employer. If the information is properly provided and the third-party fails to post the required information, liability shifts to the third-party advertising.

Record Keeping Requirement. Employers must preserve their records regarding job postings and the pay scale and benefits for each position for at least five years.

Repercussions. The statute provides for fines and penalties. For active job postings, for the first offense, an employer is given 14 days before a fine of up to $500 is imposed; for a second offense, seven days before a fine up to $2,500 is imposed and for the third offense, a fine of up to $10,000 with no ability to cure. For inactive job postings, those postings that have been filled or, otherwise, closed so no cure is relevant, the first offense provides for a fine of up to $250; the second offense, a fine up to $2,500 and the third, a fine up to $10,000.

Employers should review their job postings and job posting procedures and protocols now to be prepared to seamlessly comply with the Illinois Equal Pay Act beginning January 1, 2025. If you have questions, please contact Attorney Lorna K. Geiler.