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By: Deanna L. Litzenburg | Contributions Made By: Connor L. Welby

In an attempt to close wage gaps, Illinois has joined a growing list of states with wage transparency laws on their books. Illinois House Bill (HB) 3129 was passed by both houses of the Illinois legislature and was signed by Governor Pritzker on August 11, 2023. The bill amends Illinois’ Equal Pay Act of 2003 and will go into effect on January 1, 2025.

 The bill requires employers and employment agencies with at least fifteen employees to include the “pay scale and benefits” in every job posting. “Pay scale and benefits” are defined as follows:
“Pay scale and benefits” means the wage or salary, or the wage or salary range, and a general description of the benefits and other compensation, including, but not limited to, bonuses, stock options, or other incentives the employer reasonably expects in good faith to offer for the position…
This requirement can be fulfilled by providing the pay scale and benefits in the job posting, or including a hyperlink to a public webpage that lists the required disclosures. This is also required when third parties make job postings on behalf of an employer. Employers must also provide this information upon any employee’s hiring, promotion, or transfer, and continue to provide it annually. Additionally, employers will be required to make all promotion opportunities known to current employees no later than fourteen calendar days after the job is posted externally.
The Illinois Department of Labor (IDOL) may initiate investigations into an employer’s compliance with HB3129 at its discretion or upon receiving a complaint. If an employer has failed to make the required disclosures, they will have seven days to remedy the violation or be subject to civil penalties. These penalties include a fine of up to $500 for a first violation, up to $2,500 for a second violation, and up to $10,000 for a third and any subsequent violations.
These rules apply to all employers and employment agencies with at least fifteen employees, and employers must maintain records of pay scales and benefits for at least five years. Additionally, these requirements apply to both jobs physically performed in Illinois and jobs physically performed outside the state where the employee reports to a supervisor, office, or work site in Illinois.
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