Illinois joins national trend of pay transparency laws
Effective January 1, 2025, Illinois employers with 15 or more workers must include pay and benefits information in job postings. The disclosures apply to positions that are “physically performed, at least in part, in Illinois” or “will be physically performed outside of Illinois, but the employee reports to a supervisor, office, or other work site in Illinois.”
“Pay and benefits” are defined as “wage or salary, or the wage or salary range, and a general description of benefits and other compensation, including, but not limited to, bonuses, stock options, and other incentives the employer reasonably expects in good faith to offer for the position.”
For all external job postings, employers “must [first] 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.” Both internal and external job posting must otherwise comply with the disclosure requirements. To make matters worse, the law applies to active and inactive job postings. What does this mean for you? You must ensure past job postings are either updated or removed.
Further, employers cannot refuse to interview, hire, promote, or retaliate in any other way against an applicant for employment who exercises their rights under this law. Employers are liable for third parties who fail to make the required disclosures unless the employer provides to the third party “the necessary information regarding pay scale and benefits” and it is the third party’s failure to post. Thus, if a recruiter violates these disclosure obligations, the law holds the employer liable unless it can show the recruiter was at fault.
Failing to comply with the disclosure requirements carries various penalties.
- For current improper postings, a first offense allows for a 14-day cure period and a penalty not to exceed $500 if uncured. A second offense allows for a seven-day cure period and a penalty not to exceed $2,500 if uncured. A third offense has no cure period and incurs penalties not to exceed $10,000.
- For inactive postings, a first offense incurs penalties not to exceed $250. A second offense incurs penalties not to exceed $2,500. A third offense incurs penalties not to exceed $10,000.
Employers should be increasingly aware of the legal pitfalls associated with job postings. In many jurisdictions, the campaign for governmental oversight of job postings is quickly mounting. Employers should regularly check their state’s mandates.
Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws. If we can be of assistance in this area, please contact us at firstname.lastname@example.org or 203.454.0560