Illinois Pay Transparency Requirements for 2025: An Employer's Guide
Contents
As of January 1, 2025, Illinois employers must comply with new pay transparency requirements under the Illinois Equal Pay Act.
Understanding these changes is critical to avoiding penalties and maintaining compliance with Illinois law.
This guide breaks down the key requirements, exceptions, and the practical steps you can take to maintain compliance.
What is the Illinois pay transparency law?
Effective January 1, 2025, employers with 15 or more employees must include pay and benefit information in all job postings. Here are the key requirements:
Employers must disclose pay scale and benefits: The wage or salary for the position, or a range, must be listed in the posting. The posting must also include a general description of the benefits and any other forms of compensation.
Disclosures must be made in good faith: Employers are required to disclose what they reasonably expect the pay and benefits to be for the position.
Requirements apply to all postings: The requirements of the Act apply to both internal and external job postings, including those made by any third party (such as a recruiter) that the employer hires.
Employers must announce promotion opportunities: Employers must let current employees know of internal promotion opportunities within 14 days of making an external job posting for the same position.
Does the Act apply to remote positions: Yes it does, if the job will be performed at least in part in Illinois, or if the position reports to a supervisor, office, or other work site in Illinois.
Common pitfalls to avoid
- Using a vague pay range: Posting a salary range that’s too broad will not satisfy the requirement. Avoid posting an unreasonable range like $50,000-$1,000,000 per year.
- Don’t forget the benefits: Make sure you include the benefits offered, and any additional compensation the applicant can expect, like bonuses, stock options, or other incentives.
- Inconsistency: Make sure postings for the same or similar positions are consistent.
Penalties for non-compliance
Employers who fail to comply with the new requirements can face significant fines and penalties. Fines can be up to $500, $2,500, and $10,000 for the first, second, and third offenses respectively.
Penalties can add up quickly if multiple posting are found to be in violation.
Practical steps for compliance
As you make job postings for open positions with your business, keep these practical steps in mind:
- Update job posting templates: Revise all job ad templates to include sections for pay and benefits.
- Train HR staff: Educate your team on the law’s requirements and how to set compliant pay ranges.
- Audit third parties: Ensure recruiters include required disclosures in postings.
- Maintain records: Keep documentation of pay ranges and benefits.
- Check the Department of Labor FAQs: For basic questions, check out the Illinois Department of Labor’s FAQ section.
How an Illinois employment lawyer can help
Navigating the complexities of the new pay transparency law can be challenging, especially for businesses with limited HR resources. An Illinois employment lawyer can provide expert support to ensure compliance and minimize risks.
Small Business Legal Solutions is ready to assist Illinois employers with all aspects of the Illinois Equal Pay Act.
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Disclaimer: The information contained in this article has been prepared by Small Business Legal Solutions LLC for general informational purposes only. Nothing in this article is intended to constitute legal advice on any subject matter. The materials in this article are not intended to and do not create an attorney-client relationship. Do not act or refrain to act based on any information contained in this article without first personally consulting with an attorney. Every circumstance is different and must be judged on its own merits.