By March 24, 2024, companies with over 100 employees in Illinois will be required to provide a detailed equal pay compliance statement and obtain an equal pay registration certificate from the Illinois Department of Labor or pay a penalty equal to one percent of the company’s gross profits.
Company EEO-1 to be publicly disclosed: Beginning on January 1, 2023, Illinois employers currently required to file an EEO-1 report will be required to annually submit a similar report to the State of Illinois that includes “information that is substantially similar" to the current federal EEO-1 report. The report will be published on the Secretary of State's official website.
Equal pay registration certificate and detailed pay data reporting requirement: By March 24, 2024, any company with more than 100 employees in Illinois must obtain an equal pay registration certificate and recertify every two years thereafter, by submitting to the state:
- A list of employees separated by gender and race/ethnicity categories as reported in the business’s most recently filed EEO-1 report and the total wages paid to each employee during the previous calendar year;
- A detailed equal pay compliance statement signed by a corporate officer, legal counsel, or authorized agent of the business that includes how the company sets its compensation and benefits (e.g., a market pricing approach, union contract requirement, a performance pay system, or an alternative approach) and how often wages and benefits are evaluated for compliance; and
- A copy of the company’s most recently filed EEO-1 report for each county in which the business has a facility or employees.
Rejection or revocation of certificate: The Illinois Department of Labor may audit the company. If a company fails to make a good-faith effort to comply with the statute or has multiple violations of the law’s requirements, its equal pay registration certificate may be suspended or revoked.
Penalty: Any employer that falsifies or misrepresents information on its application, does not obtain an equal pay registration certificate, or whose certificate is suspended or revoked after an investigation may be penalized in an amount equal to one percent of the business’s gross profits.
Takeaway: Companies with employees in Illinois should begin planning to bring themselves into compliance well before January 1, 2023 and may want to conduct EEO and pay equity audits to identify any issues and changes that may be required before obtaining an equal pay certificate.
