e-Alert: Illinois Pay Data Reporting

Background

Illinois enacted SB 1480 and SB 1847, which amended various laws including the Illinois Equal Pay Act. On June 25, 2021, Governor Pritzker signed SB 1847 into law, which further amended the Act (“Recent Amendments”).

Summary

The Equal Pay Act prohibits employers from paying unequal wages to men and women for doing the same or substantially similar work. It also prohibits employers from paying African-American employees less than another employee who is not African-American for the same or substantially similar work.

 Employer Requirements:

• Private employers with 100 or more employees in the state of Illinois AND
• Required to file an EEO-1 with the Equal Employment Opportunity Commission (EEOC)
• The Equal Pay Act requires employers to apply for an “equal pay registration certificate” with the Illinois Department of Labor (IDOL) between March 24, 2022, and March 23, 2024.

Frequency:

• Employers will need to recertify every two years after initial certification

Employer Application for Equal Pay Certificate:

• $150 filing fee
• Most recent copies of the company’s EEO-1 reports
• Employee listing including race, ethnicity, gender, total wages, county, and the employee’s date of hire

Compliance Statement Requirements (within application):

• Verify the organization is in compliance with the Equal Pay Act and any other applicable laws (e.g., Title VII of the Civil Rights Act of 1964, The Equal Pay Act of 1963, and The Illinois Human Rights Act).
• Verify that the average compensation for minority employees is not consistently less than for non-minorities.
• Verify that the organization does not confine any one gender to a certain role and makes retention and promotion decisions without regard to gender.
• Certify that wage and benefit discrepancies are corrected when identified.
• Provide frequency of how often the organization reviews compensation and benefits.
• Provide methodology on how the organization determines compensation and benefits for each role.

Employers Next Steps

• Employers in the state of Illinois with over 100 employees must complete the Equal Pay Act Registration Certificate (EPARC), if they have not already done so.
• Illinois employers will need to begin auditing and potentially modifying their compensation practices immediately to obtain an equal pay registration certificate, which must now be submitted to the Illinois Department of Labor between March 24, 2022 and March 24, 2024.
• If you are interested in outsourcing the preparation and submission of your company’s Illinois pay data, please email us.

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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.