Prairie State Wire

The National Federation of Independent Business (NFIB) Illinois has submitted formal comments to the Illinois Department of Labor regarding proposed rules on pay transparency. The rulemaking process follows the enactment of Public Acts 103-539 and 104-17, which require employers in Illinois with at least 15 employees to include pay scales and benefits in job postings starting January 1, 2025.

NFIB represents over 10,000 small and independent businesses in the state. In its comments, NFIB raised concerns about several aspects of the proposed regulations. The organization cited the Illinois Administrative Procedure Act, which requires state agencies to consider how new rules affect small businesses and to prepare an economic impact analysis that estimates the number of affected businesses and outlines potential positive or negative effects.

According to NFIB, "The Department’s rulemaking provided the types but failed to provide an estimate on the number of small businesses subject to the proposed rule." Additionally, NFIB noted that "The Department did not include this statement in its rulemaking," referring to a required assessment of probable economic effects on impacted small businesses.

NFIB also objected to language in sections of the proposed rules related to complaint procedures under the Equal Pay Act. The group argued that allowing complaints without a name or contact information contradicts statutory requirements for complaints to be “complete” and “signed.” As stated in their submission: "An incomplete or unsigned complaint ('that lacks a complainant’s name and contact information') violates specific statutory protections and parameters."

Further, NFIB pointed out that current administrative rules already allow for confidentiality during investigations while maintaining clear standards for what must be included in a complaint. They criticized changes that would remove requirements for full names and addresses from complaints as unjustified by recent legislative amendments.

On penalties, NFIB highlighted concerns about how protections for small businesses are applied. They said that while some penalty provisions appropriately consider business size as required by law, others do not: "This oversight could, through administrative rules, limit a key statutory protection for small businesses subject to the penalties applied under 820 ILCS 112/30(c). The Department should rectify this deficiency and add the protective language...to align the rulemaking with the statutory language."

In conclusion, NFIB stated: "NFIB appreciates the Department’s review and consideration of these concerns and stands ready to work with the Department and General Assembly to address and resolve these and other concerns that may arise."