Illinois recently introduced a bill (HB 3129) aimed at promoting pay transparency in the workplace. In this article, we will explore the key features of Illinois' pay transparency bill, how it compares to other pay transparency laws, and its impact on businesses.

Requirements

Under the proposed bill, Illinois employers with 15 or more employees are required to provide employees with information about their wages, benefits, and other compensation-related details in any specific job posting. Specifically, these disclosures include informing employees of their wage or salary range and a general description of the benefits and other compensation the employer reasonably expects to offer for the position.

It should be noted, though, that the bill does not require employers to make a job posting if not already being done.

Joining the Pay Transparency Club – How does Illinois compare?

The Illinois bill is another piece in the ever-growing landscape of pay transparency laws. As we reported in January 2023, many states have passed laws that require certain pay disclosures. Some states’ current pay transparency laws require disclosure upon request (like Connecticut) or when the applicant has completed an interview for the position (like Nevada).  The Illinois bill would require more. As currently written, the bill mirrors states like Colorado and Washington, which passed transparency laws that require disclosure in both external and internal job postings. The current Illinois amendment also provides that the Illinois Department of Labor can initiate investigations and provides for civil penalties per violation.

Implications

It is crucial for businesses to review their compensation practices, ensure transparency, and address any disparities that may exist.

Recommended steps include the following:

1. Conduct a Pay Audit. As pay transparency laws continue to gain popularity, it is recommended that employers conduct a pay audit of their workforce to ensure compliance and address any disparities, should they exist.
2. Analyze Workforce and Applicable Pay Transparency Laws. For employers with a remote or nationwide workforce, it is crucial to understand what pay transparency laws are applicable and the requirements under each law. To ensure full compliance, an employer with a workforce that is implicated by multiple pay transparency requirements should consider complying with the most stringent law(s) as that will ensure a streamlined process across the workforce.

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