Notice to Employers IL – New Pay Practices

Notice to Employers IL – New Pay Practices

Tom Stilp, JD, MBA/MM, LLM, MSC

A series of new Illinois employment regulations will change the way some employers handle day-to-day operations.  Equal pay provisions are a big change.

Companies with more than 100 employees must get an “equal pay registration certificate” by 2024.

To be certified, the company must show that “the average compensation for its female and minority employees is not consistently below the average compensation.”  Experience, seniority and other factors are taken into consideration, but the issue will be the reporting.

The certificates must be renewed every two (2) years.

Employees are broken down into gender, race, ethnicity and reported to the Illinois Secretary of State.

The information will disclose, in categories, a company’s diversity, employee salaries, demographics and other relevant information about the pay structure of the company.

Although the federal Equal Employment Opportunity Commission forms (EEOC) are confidential, some of the information reported to Illinois Secretary of State will be public within 90 days.

Apart from the reporting, there is the process of compiling data, and depending on how kept, catalogued and handled, can be burdensome.

As to penalties, a company that does not get certified can be fined up to 1% of its gross profits.

From employee handbooks to litigation, we’ve handled dozens of employee-related issues for our business clients, hiring to termination, discrimination (age, sex and race) to retaliation, overtime to federal labor standards.  If we can help, let us know.

Image Cred: https://www.abetterbalance.org/equal-pay-day-2019-challenges-and-opportunities-for-progress/