Illinois pay transparency law mandates pay scale, benefits in job postings
- Illinois Gov. J.B. Pritzker, a Democrat, on Friday signed into law pay transparency legislation that requires employers to include pay ranges and benefits in job postings, expanding the state’s Equal Pay Act of 2003 law. The legislation, HB 3129, goes into effect Jan. 1, 2025.
- The law also requires that employers notify workers of promotion opportunities within 14 days after the job is posted externally.
- Under the legislation, companies must first share a salary range for a position before asking candidates about their wage expectations for the role.
Illinois is the latest in a string of states passing new pay transparency laws, joining others like Colorado and California in expanding employers’ requirements.
New York City’s pay transparency mandate went into effect in November, requiring companies to post a “good faith” salary range in job listings. Almost immediately, some companies listed ranges spanning more than $100,000.
Illinois’ law similarly calls for pay scales to be in “good faith” and to be based on previous ranges for the position, the actual range employees are currently paid for similar roles and the amount budgeted for the position, representatives from labor and employment firm Littler explained in a blog post for the firm.
Where Illinois differs is in how the state will allow employers to satisfy pay disclosure mandates, Joy Rosenquist, counsel at Littler, and Victoria Vanderschaaf, an associate at Littler, said. The state permits employers to link to a public website with a listing of all disclosures, they said.