Illinois Mandates Pay Transparency in Job Postings (1/1/25)
On August 11, 2023, Illinois joined a number of States when Governor J.B. Pritzker signed into law an Amendment to the Illinois Equal Pay Act requiring additional transparency in job postings. Starting January 1, 2025, employers with 15 or more employees must include pay ranges in postings for jobs in Illinois. The required disclosures include the wage or salary, or the wage or salary range, as well as a general description of benefits and other forms of compensation, including bonuses, stock options and other incentives the employer expects to offer for the position.
The pay disclosure requirements apply to those jobs that (1) will be performed, at least in part, in Illinois, or (2) will be performed outside of Illinois if the hired employee will report to a supervisor, office or other work site in Illinois.
Employers are to include the “good faith” range the employer reasonably expects to offer and may rely on factors such as existing pay ranges, the budgeted amount for the role, or the actual range paid to current employees in equivalent positions. Employers may meet their obligation to disclose benefit information by reference to an easily accessible public section of an employer’s website.
If an employer engages a third party (external recruiter) to publish job opportunities, the employer must provide the required information to the third party, or provide a hyperlink to where the information is available. The third party is then obligated to include this date in the job posting. If the employer fails to provide the necessary information, the third party may avoid liability.
The Illinois Department of Labor will oversee the enforcement of the amendments and may initiate investigations upon receiving complaints from individuals who claim to be aggrieved by a violation of the pay scale and benefits disclosure requirements, or at its discretion. Upon determining that a violation has occurred, the Department will issue a notice to the employer detailing the violation, applicable penalties, and a specified period for the employer to correct the issue.
Employers should review their job postings and promotional practices to ensure compliance with the new requirements. We at Thomas Mamer LLP continue to monitor this amendment for additional details and are available to assist employers navigate these new requirements.
We encourage you to contact the Labor & Employment attorneys at Thomas Mamer LLP for further guidance.
