Employers in Illinois may soon have to be transparent about their pay scale and benefits on job postings. The Illinois General Assembly recently passed House Bill 3129 requiring employers to include pay scale and benefits in job postings. The Bill is expected to be signed by Governor J.B. Pritzker, and if signed, will take effect January 1, 2025. The Bill applies to positions that will be physically performed, at least in part, in Illinois, or will be physically performed outside of Illinois but the employee reports to a supervisor, office, or other work site in Illinois.
The Bill provides that it is unlawful for an employer with 15 or more employees to not include the pay scale for a position in a job posting. For purposes of the Bill, "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 of the job position. The Bill also mandates that employers shall announce, post, or otherwise make known all opportunities for promotion to all current employees no later than 14 days after the employer makes an external job posting for a position. The inclusion of a hyperlink to a publicly viewable webpage that includes pay scale and benefits satisfies the requirements.
Any person accusing an employer of violating this legislation may submit a complaint to the Illinois Department of Labor ("Department") within one year after the date of violation. If the Department determines that a violation has occurred, it can impose monetary penalties ranging from $500 to $10,000 depending on the number of offenses.
If signed by Governor Pritzker, Illinois will join three other states that have passed similar legislation. In 2021, Colorado became the first state in the country to mandate pay scale and benefit transparency in their job postings, with California and Washington soon following suit. Other states, including Maryland and Rhode Island, have enacted related legislation requiring employers to provide a wage range to all applicants who request one. Additionally, cities and counties across the country have enacted their own pay scale and benefit transparency legislation, including New York City and Ithaca, NY.
Employers in Illinois subject to the Bill should take steps to prepare talent and recruitment teams for the new changes. If you have any questions about this new Bill, please contact us at info@gutweinlaw.com.
