Requirements of the New Illinois Pay Transparency Amendment

In 2023, Illinois passed a pay transparency amendment to the Equal Pay Act which went into effect on January 1, 2025. To comply with this amendment, Illinois employers with 15 or more employees must provide information on compensation and benefits in certain job postings. Any job posting for a specific position that will be either completed in Illinois or report to a supervisor, work site, or management in Illinois must comply with the pay transparency requirements.

The amendment does not demand that Illinois employers publish job postings, but applies if employers choose to do so. General advertisements such as “help wanted” signs are not included. However, Illinois job postings for specific positions or job titles should identify pay scale and benefits in their description. Employers may provide a hyperlink to a separate webpage with the pay scale and benefit information instead, as long as the compensation information is specific to the position.

Additionally, employers must publish any externally advertised job postings to current employees, with the same compensation and benefits information. If a job posting is only published internally within a company, the posting still must provide information on compensation and benefits.  

Employers can hire applicants without the use of specific job postings. However, if an applicant asks for pay scale and benefits for the position, the employer must provide that information before an offer is made.

The new pay transparency amendment expands the record keeping requirements of the Illinois Equal Pay Act. In addition to preserving records of employees’ jobs and wages, employers must keep records of their job postings for each position in Illinois for five years.

Employers who violate the pay transparency requirements may be ordered to pay penalties. Any person aggrieved by a pay transparency violation can file a complaint within one year, or the Department of Labor may initiate its own investigation. If the Department of Labor determines that a violation occurred, it has the discretion to fine the employer up to $10,000 depending on past offenses, the gravity of the violation, and size of the employer’s business.