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Saturday, December 21, 2024

Pay transparency law requires salary details on job postings from January

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Jane Flanagan Director at Illinois Department of Labor | Official website

Jane Flanagan Director at Illinois Department of Labor | Official website

The Illinois Department of Labor (IDOL) has issued a reminder that starting January 1, 2025, employers with 15 or more employees must include pay scale and benefit information in all job postings. This requirement is part of an amendment to the Illinois Equal Pay Act of 2003, contained in HB 3129, which was passed by the General Assembly and signed into law by Governor JB Pritzker in 2023.

The amendment aims to increase transparency in the hiring process by allowing prospective employees to understand compensation and benefits offered for open positions. Employers are also required to inform current employees about all open job postings so they can apply if interested.

Governor JB Pritzker stated, "Here in Illinois, we've taken action to close the pay gap and strengthen protections for workers — and these amendments to the Illinois Equal Pay Act are another critical step in that fight." He added that clear compensation and benefits information would help create a more equitable job market.

Lt. Governor Juliana Stratton emphasized the importance of transparency for closing gender and racial wage gaps: "When employers aren't transparent about pay, gender and racial wage gaps widen, costing women and people of color valuable compensation." She described the new law as "a resounding win for the working people who call our state home."

Illinois Department of Labor Director Jane Flanagan noted that both employers and workers benefit from informed choices: "These new amendments are another step forward in Illinois' continued efforts to close wage gaps through pay equity and transparency."

Individuals may file complaints with IDOL if they find job postings lacking required salary and benefit information. Complaints should be submitted within one year of the alleged violation, including evidence such as a link or screenshot. If a violation is found, IDOL will notify the employer with a deadline for resolution.

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