Illinois Implements New Pay Transparency Law to Promote Equal Pay
Effective January 1, 2025, Illinois will enforce new amendments to the Illinois Equal Pay Act of 2003, requiring employers with 15 or more employees to provide detailed pay scale and benefits information in all job postings. This legislative change, part of HB 3129 signed into law by Governor JB Pritzker in 2023, is a substantial move towards increasing transparency in the hiring process and promoting equal pay across the state.
Under the new law, job postings must clearly state the wage or salary range expected for the position, detailed descriptions of additional compensation such as bonuses, stock options, and other incentives, as well as a comprehensive breakdown of benefits. This requirement extends to both internal and external job postings and applies regardless of whether jobs are covered by collective bargaining agreements.
“Here in Illinois, we’ve taken action to close the pay gap and strengthen protections for workers — and these amendments to the Illinois Equal Pay Act are another critical step in that fight,” said Governor JB Pritzker. “By ensuring that compensation and benefits are clear from the start, workers will have the information they need to make informed decisions, helping to create a more equitable job market.”
Moreover, the law mandates that employers notify their current employees about all open job positions within 14 days of their public posting, ensuring that current employees are aware of advancement opportunities.
Non-compliance with these regulations can lead to significant penalties for employers. For active job postings, fines can range from $500 for a first offense to up to $10,000 for third or subsequent offenses. The Illinois Department of Labor (IDOL) will oversee the enforcement of these provisions, with the authority to initiate investigations based on complaints submitted by individuals within one year of the alleged violation.
The IDOL is empowered to issue correction notices to employers who fail to comply, outlining the nature of the violation and the timeline for resolution. In addition to fines, ongoing record-keeping requirements compel employers to maintain records of job postings, pay scales, and benefits for each position for at least five years.
This legislative update is a clear step forward in Illinois’ ongoing efforts to ensure pay equity and transparency, benefiting employers and workers alike by fostering an open and equitable work environment. Employers are urged to prepare for these changes by revising their job posting and promotional practices to align with the new transparency standards before they take effect in 2025.
“When employers aren’t transparent about pay, gender and racial wage gaps widen, costing women and people of color valuable compensation,” said Lt. Governor Juliana Stratton. “Illinois’ new Pay Transparency law is a resounding win for the working people who call our state home. Not only will transparency help close gender and racial wage gaps, it will also empower EVERY worker considering how potential income will impact their families.”
Other states with wage transparency laws include: Connecticut, Hawaii, Illinois, Maryland, Minnesota, Nevada, New York, Rhode Island, Vermont, and Washington.
