Covered Employers in Illinois and California Must Soon Report Their Pay Equity Data to the State

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Basic Reporting Requirements in Each State

Illinois

Who is a covered employer?

For purposes of the new requirement to report pay data to the Illinois Secretary of State, covered employers are Illinois corporations or foreign corporations authorized to transact business in the state that are required to submit EEO-1 reports to the federal government. That includes employers (a) with more than 100 employees or (b) with more than 50 or more employees and a federal government contract that equals or exceeds $50,000.

What must covered employers do?

  1. For employers required to report pay data to the Illinois Secretary of State:
    • Submit data from their Section D of their most recent EEO-1 report with their annual report under the Business Corporation Act.
  2. For employers required to obtain an equal pay registration certificate from the Illinois Department of Labor:
    • Apply for an equal pay registration certificate from the IDOL.
    • Submit a signed statement certifying compliance with various equal pay/discrimination laws and standards, including the Illinois Equal Pay Act, Illinois Equal Wage Act, Title VII, and the federal Equal Pay Act.
    • Submit their most recent EEO-1 report.
    • Submit a list of all individuals employed in the last calendar year, and for each provide: (a) start date, (b) total wages, and (c, such as duties or expertise. The list should be separated by gender, race, and ethnicity.

What is the deadline?

For the requirement to report to the Illinois Secretary of State, pay data must be included in the corporation’s annual report under the Business Corporation Act filed on or after January 1, 2023.

Covered employers subject to the equal pay registration certificate requirement who were authorized to do business in Illinois as of March 23, 2021, must go through this process at some point between March 24, 2022 and March 23, 2024. The IDOL will assign employers a deadline. (Reports indicate that hundreds of employers already received notice that their deadline is May 25, 2022.)

Will IDOL publish this data?

For corporations required to report EEO-1 data to the Secretary of State, data about the gender, race, and ethnicity of their employees will be published on the Secretary of State’s website.

For businesses required to obtain an equal pay registration certificate, any personally identifiable information will be deemed confidential and is exempt from disclosure, but the state may well publish aggregate data. Additionally, IDOL may also publish personally identifiable information with the Illinois Department of Human Rights or the Office of the Attorney General.

California

Who is a covered employer?

Employers already required to file a federal EEO-1 Component 1 report.

What must covered employers do?

Employers must provide information about employees’ annual W-2 earnings and hours worked, sorted by job category, pay band, gender, race, and ethnicity. To complete the pay data report, employers must select one pay period between October 1 and December 31 of the reporting year to serve as the “snapshot period” for the report’s contents. Only full- and part-time employees who worked or were assigned to work in California during the snapshot period must be included. Teleworking employees should only be included in the pay data report if they are teleworking from California or are normally assigned to the employer’s California establishment. Employers with multiple establishments must submit a pay data report for each establishment along with a consolidated report that includes all covered employees.

The report must be certified by a company official who:

  • Has knowledge of the information contained in the report or has obtained such information from someone with knowledge of the data contained in the report.
  • Reviewed the report and can certify its accuracy.
  • Is authorized to file the report on behalf of the employer.

What is the deadline?

April 1, 2022.

Will the Department of Fair Employment & Housing (“DFEH”) publish this data?

Any personally identifiable information is deemed confidential and exempt from disclosure or publication, including pursuant to California’s Public Records Act. However, the agency may disclose the information if the DFEH or the Department of Labor Standards Enforcement open a formal investigation into the employer involving that information. In such cases, the agencies can only use the information to the extent necessary for purposes of the investigation.

Are there any changes from last year?

Consistent with changes at the federal level, California has updated the pay bands with higher wage intervals for this year. Further, California has created a new registration process and a new interface for employers to upload the data.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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