September 27, 2023
Illinois law requires pay transparency in job postings
Illinois Governor J.B. Pritzker signed into law HB 3129, which, effective January 1, 2025, expands the Illinois Equal Pay Act (IEPA) to require that employers with 15 or more employees provide pay transparency in job postings.
The law applies to Illinois employers, including individuals, partnerships, businesses, trusts, the State of Illinois (as well as state offices, departments or agencies), units of local government and any school district, with 15 or more "gainfully employed" employees.
Job posting requirements
Employers are required to include in job postings:
Instead of listing the pay scale and benefits, employers may include a hyperlink to a public website that includes the pay scale and benefits for the job position.
If an employer uses a third party to advertise job postings, the third party must provide the pay scale and benefits information, or a hyperlink to the information. The third party is liable for failing to include the pay scale and benefits in the job posting unless it can demonstrate that the employer failed to provide the information.
Promotional opportunity requirements
Employers are required to announce, post or otherwise make known to the current workforce all opportunities for promotion no later than 14 calendar days after an external posting is made of a job position.
The pay transparency requirement applies to job positions that will be physically performed, at least in part, within Illinois and to positions that will be physically performed outside of Illinois if the employee reports to a supervisor, office or other worksite within the state.
Ernst & Young LLP insights
Employers should also be aware that since September 29, 2019, Illinois employers are also subject to a "wage history ban." Under this provision of the IEPA, employers and employment agencies are prohibited from asking job applicants about their wage and compensation history or to use this information when screening applicants for a job position.
The prohibition does not apply if the applicant's salary history is a matter of public record or if the applicant is currently employed by the same employer.
Employers are not subject to penalties under the IEPA if applicants voluntarily provide their wage history; however, such information cannot be used in making a hiring decision or in determining the applicant's compensation.
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor