Last year, Illinois updated the Illinois Equal Pay Act (“IEPA”) by enhancing reporting and compliance requirements for private businesses that have at least 100 employees in Illinois and are required to file an Annual Employer Information Report EEO-1 (“EEO-1”) with the Equal Employment Opportunity Commission. Covered employers will be required to apply for an “equal pay registration certificate” from the Illinois Department of Labor (“IDOL”) between March 24, 2022 and March 23, 2024, and must recertify every two years thereafter. Businesses authorized to do business in Illinois after March 23, 2021 must apply for an equal pay registration certificate within three years of commencing business operations, but not before January 1, 2024, and must recertify every two years thereafter.
According to the IDOL, it will communicate directly to covered businesses when it is time for them to register. Each business will receive no less than 120 days advance notice of their registration deadline. In addition to providing the IDOL with the business's most recently filed EEO-1, the business must also compile a list of all employees during the past calendar year, separated by gender and race and ethnicity categories as reported in the EEO-1, and the county in which the employee works, the employee’s start date, total wages paid and any other information the IDOL deems necessary to determine if pay equity exists among employees.
The business must submit a statement signed by a corporate officer, legal counsel, or authorized agent of the business certifying:
Violations of the IEPA’s reporting and certification requirements can result in a fine of up to $10,000. Additional information can be found on the IDOL’s website (link).
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