The Illinois Equal Pay Act requires employers with 15 or more employees to include pay scale and benefits in any job posting for (1) positions that will be physically performed in Illinois, and (2) positions that will be physically performed outside of Illinois when the position reports to a supervisor, office or other work site in Illinois. Employers must also announce, post or otherwise make known opportunities for promotions to current employees. Employers must retain job postings and other records for employees.
The law includes a definition of “pay scale and benefits” that includes “wage or salary, or the wage or salary range, and a general description of the benefits and other compensation, including but not limited to, bonuses, stock options, or other incentives.” An employer must include the pay scale and benefits that it “reasonably expects in good faith to offer” and may use “any applicable pay scale, the previously determined range for the position, the actual range of others holding equivalent positions, or the budgeted amount for the position, as applicable.”
There are two ways to comply with the job posting requirement:
To meet the transparency requirements for promotions, an employer must take steps to notify current employees of promotion opportunities no later than 14 calendar days after making an external job posting for the same position. An employer may use its intranet or employee website or other communications methods it typically uses to notify employees of work-related information.
An employer must maintain the records for at least 5 years. The records to be maintained are: name, address, occupation of each employee; wages paid, pay scale and benefits for each position and the job posting for each position.
Employers may not retaliate against an applicant or employee for exercising any rights under the Equal Pay Act. Retaliation includes refusing to interview, hire, promote or employ someone based on asserting rights under the Equal Pay Act.
If an employee or applicant files a complaint, the Illinois Department of Labor (“IDOL”) may initiate an investigation upon receipt of a complaint. Individuals must submit a complaint within one year of the alleged violation. If IDOL determines that a violation has occurred, it may impose penalties. Employers should also be aware that other states may have similar requirements and should take steps to comply with all applicable requirements for a particular job posting.
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