SHARE

February 03, 2022

Illinois Department of Labor Announces Opening of Equal Pay Registration Certificate Application Period for Illinois Employers

You've Reached Your
Free Article Limit This Month
Register for free to get unlimited access to all Law.com OnPractice content.
Register Now

Key Takeaways

  • As covered in our previous Alert, private businesses with more than 100 employees must obtain equal pay registration certificates from the Illinois Department of Labor (IDOL) between March 24, 2022, and March 23, 2024, and every two years thereafter.
  • The requested employee composition data is substantially similar to what large employers are already obligated to compile and report to the Equal Employment Opportunity Commission in their EEO-1 reports.

New obligations under amendments to the Illinois Equal Pay Act, passed by the Illinois General Assembly and signed by Governor J.B. Pritzker last year, take effect on March 24, 2022. As covered in our previous Alert, private businesses with more than 100 employees must obtain equal pay registration certificates from the Illinois Department of Labor (IDOL) between March 24, 2022, and March 23, 2024, and every two years thereafter. To receive these certificates, businesses must submit an application to the IDOL by a registration date that the IDOL will assign. The application requires a list of employee composition data separated by gender and race/ethnicity as well as the total wages paid to each employee in the prior calendar year, along with the employees' job classification, job title, location by county, start date of employment and, if applicable, termination date. The application also requires a signed certification by a corporate officer, legal counsel or authorized agent of the business confirming that the employer complies with federal and state anti-discrimination and equal pay laws and does not differentiate between employees in position or pay (using average wage comparison) based on gender or minority status. Lastly, the application also includes information about the employer's compensation and benefit setting and disparity correction practices. Businesses with multiple facilities in Illinois will submit a single application, together with a $150 application fee.

The requested employee composition data is substantially similar to what large employers are already obligated to compile and report to the Equal Employment Opportunity Commission in their EEO-1 reports. However, Illinois businesses should begin analyzing the additional information on pay composition data and compensation and benefit setting and disparity correction practices now, given the potential penalties and other consequences attached to the new equal pay registration certificate requirements. Specifically, the IDOL has authority to audit and investigate an employer's equal pay registration certificate applications and data submissions, including the ability to depose witnesses and issue subpoenas for relevant documents. Failure to cooperate with these investigations could lead to contempt proceedings against the employer. Additionally, businesses that fail to obtain their equal pay registration certificates could face civil penalties of up to $10,000 per violation and fines of $2,500 to $10,000 per affected employee. Moreover, unlike a business's EEO-1 report, the Illinois Secretary of State will publish the data submitted with employers' equal pay registration certificate applications within 90 days of submission, providing interested parties with detailed employee composition and compensation data.

On January 26, 2022, the IDOL announced that it has begun distributing application registration letters, which will continue throughout the initial two-year compliance period. The IDOL will communicate directly to businesses when it is their time to register, and will do so no less than 120 days in advance of their application registration deadline. The IDOL supplemented its recent press release with the Equal Pay Act registration certificate template. We will review and analyze additional developments and guidance, which we expect from IDOL before the compliance period begins on March 24, 2022.

Given these new equal pay registration certificate requirements, Illinois employers are encouraged to consult proactively with counsel to address employee composition and compensation data compilation, and compensation and benefit setting and disparity correction practices.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

ALM expressly disclaims any express or implied warranty regarding the OnPractice Content, including any implied warranty that the OnPractice Content is accurate, has been corrected or is otherwise free from errors.

More From Duane Morris

Debt Collection in Myanmar

By LEON YEE Duane Morris March 04 , 2022

The COVID-19 pandemic triggered severe economic shock, particularly in countries like Myanmar that rely heavily on labour-intensive industries. The recent change in the government has added further concerns to the political state of Myanmar.

#MeToo Movement Inspires the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Claims Act

By EVE I. KLEIN Duane Morris March 03 , 2022

In a rare act of bipartisanship and by unanimous voice vote on February 10, 2022, the U.S. Senate passed legislation to eliminate the use of binding arbitration provisions for disputes involving sexual assault and sexual harassment. President Joe Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (HR 4445) into law on March 3, 2022.

Significant U.S. Sanctions Against Russia Create Challenges for Many Companies

By GEOFFREY M. GOODALE Duane Morris March 03 , 2022

Since Russia’s recent recognition of the self-proclaimed independence of two separatist regions of Ukraine and subsequent invasion of the country, the United States and a number of its key allies have sequentially imposed significant sanctions against Russia.

More From Employment Law

USCIS Agrees to Bundle H-4, L-2, and EAD Applications Filed with Principal's Petition

By Kristen T. Burke Greenberg Traurig January 26 , 2023

As a result of a class action lawsuit, U.S. Citizenship and Immigration Services has entered into a settlement agreement to “bundle” an application to extend or change H-4 or L-2 status and, if applicable, an employment authorization document (EAD) application, if the application is filed with the principal’s corresponding H-1B or L-1 petition.

FinCEN Proposes Rule on Access to Beneficial Ownership Information

By Marina Olman-Pal Greenberg Traurig January 24 , 2023

On Dec. 15, 2022, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM or Proposed Rule) implementing the provisions of the Corporate Transparency Act (CTA) that govern access to beneficial ownership information (BOI) FinCEN collects and maintains.

U.S. State Department Unveils a New Refugee Program, 'Welcome Corps'

By Kristin Bolayir Greenberg Traurig January 24 , 2023

On Jan. 19, 2023, the U.S. State Department unveiled a new refugee program, “Welcome Corps,” which enables private sponsorship of refugees.

Featured Stories
Closeclose
Search
Menu

Working...