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Illinois Becomes Next State to Require Pay Data Reporting and Equal Pay Certification

2021-03-15

Data on gender, race, and ethnicity will be published on the Secretary of State’s website

Both houses of the General Assembly in Illinois passed the final version of SB 1480. It was then sent to the Governor’s office on February 5, 2021 for signature. The bill amends the Human Rights Act regarding criminal convictions and the Business Corporation Act regarding additional information that is required to be filed with corporate annual reports.

Illinois becomes the next state to require domestic and registered foreign corporations to file an EEO-1 report to include in annual corporate reports filed with the Illinois Secretary of State information similar to the employment data in Section D of the federal EEO-1 form.  The Secretary of State will publish data on the gender, race, and ethnicity of the corporation’s employees on the Secretary of State’s website.  This obligation on employers applies to corporate reports filed on or after January 1, 2023. 

In addition to the annual reporting, private employers with more than 100 employees in the state must obtain an “equal pay registration certificate.”  Employers must provide the EEO-1 data in Section D plus the total wages paid to each employee during the prior calendar year.  Wages are defined in Section 2 of the Illinois Wage Payment and Collection Act and include wages, salaries, earned commissions, and other forms of compensation.  A statement signed by a corporate officer, legal counsel, or other authorized agent of the business for each county where the business has employees must be submitted making the following representations:

  • The business is in compliance with Title VII, the Equal Pay Act of 1963, the Illinois Human Rights Act, the Equal Wage Act, and the Equal Pay Act of 2003; 
  • The average compensation of its female and minority employees is not consistently below the average compensation for its male and non-minority employees within each of the major EEO-1 job categories, accounting for factors such as length of service, job requirements, experience, skill, effort, responsibility, working condition and other mitigating factors; 
  • The company does not restrict employees of one sex to certain job classifications and makes decisions about retention and promotions without regard to sex; 
  • Where wage and benefit disparities are found, they are corrected; and 
  • The business reports how often they evaluate wages and benefits to ensure compliance with all the statutes identified in the first bullet.

Failure to obtain a certificate or a suspended or revoked certification after an investigation is subject to a mandatory civil penalty equal to 1% of “gross profits.”  Within three years of the effective date of the law, corporations must obtain their certificate and must recertify every two years.

Illinois Department of Labor Equal Pay Act FAQs.

The foregoing has been prepared for the general information of clients and friends of Workplace Dynamics LLC and is not being represented as being all-inclusive or complete. It has been abridged from legislation, administrative ruling, agency directives, and other information provided by the government. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel.