Illinois Pay Transparency Law

Illinois Pay Transparency Law

On August 11, 2023, Illinois Governor J.B. Pritzker signed Illinois’ proposed pay transparency law (HB 3129) into law. HB 3129 amends the Illinois Equal Pay Act of 2003 to mandate that employers (defined as any business “for whom employees are gainfully employed in Illinois”) with 15 or more employees must include the pay scale and benefits for a position in any job posting (a hyperlink to a publicly viewable webpage that includes the pay scale and benefits satisfies the requirements of this law). Likewise, if an employer with 15 or more employees engages a third party to announce, post, publish, or otherwise make known a job posting, the employer must provide the pay scale and benefits to the third party and the third party is thereafter required to include the pay scale and benefits in the job posting (or a hyperlink to the pay scale and benefits). “Pay scale and benefits” is defined in the bill to include “the 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 the employer reasonably expects in good faith to offer for the position.” Illinois employers additionally are required to “announce, post, or otherwise make known” all opportunities for promotion to all current employees no later than 14 calendar days after the employer makes an external job posting for the position. This law only applies to positions that (1) will be physically performed, at least in part, in Illinois, or (2) will be physically performed outside of Illinois, but the employee reports to a supervisor, office, or other work site in Illinois. And the law only applies to job postings that have been posted after the effective date of this law.