Key Developments and Changes in Illinois Employment Law This Year

As Illinois advances its commitment to employee-friendly workplace legislation, employers should take note of several significant changes introduced this year. Specifically, Illinois has joined the list of states implementing new pay transparency and job opportunity disclosure requirements, created new obligations for pay stub recordkeeping and employee access, and introduced new guidelines for handling employee personnel record requests. Below is a breakdown of what you need to know to stay compliant:

1. New Pay Transparency Obligations

Amendments to the Illinois Equal Pay Act of 2003 mandate the disclosure of pay scales and benefits in job postings and promotion opportunities, as well as strict recordkeeping rules. Employers must ensure that job postings, whether internally or externally posted, align with these requirements.

Who Is Subject to These Requirements?
The law applies to a wide range of employers, including individuals, partnerships, corporations, associations, businesses, and trusts with 15 or more employees, regardless of whether those employees are located inside or outside of Illinois. However, the requirements are limited to positions that either:

• Physically perform work in Illinois, or
• Report to a supervisor or work site located in Illinois.

What Do Covered Employers Need to Do?
Employers must include the following in any job postings for new jobs or promotions:

• Pay Scale: A wage or salary range that the employer genuinely expects to pay for the position, based on factors such as qualifications, budget, or operational needs. Open-ended terms like “$XX and up” are not allowed.
• Benefits: A general description of benefits, including bonuses, stock options, or other incentives.

These requirements also apply to postings made through third-party platforms. If the employer provides the necessary information to the third party, the third party becomes liable for any failure to include it in the posting. Employers can provide this information through hyperlinks or by directing applicants to an easily accessible benefits description on their website.

Even if a job is not formally posted, employers must provide pay scale and benefits information before discussing compensation or at the applicant’s request. Employers may offer compensation outside the disclosed range, provided the original range was made in good faith.

Internal Promotion Notifications
Employers must notify all current employees of promotion opportunities at least 14 days before posting the same position externally.

Recordkeeping
Employers must retain records of pay scales, benefits, and job postings for every position for five years.

Penalties for Noncompliance
Employers are prohibited from retaliating against individuals for exercising their rights under the law. Complaints may be filed with the Illinois Department of Labor within one year of an alleged violation.

• Fines for Active Postings:
  • First offense: Up to $500 (14-day cure period).
  • Second offense: Up to $2,500 (7-day cure period).
  • Subsequent offenses: Up to $10,000 (no cure period).
• Fines for Inactive Postings:
  • First offense: Up to $250.
  • Additional offenses: Same penalties as active postings.

The enhanced penalty structure resets if five years pass without another offense.

2. New Pay Stub Recordkeeping and Employee Access Requirements

Amendments to the Illinois Wage Payment and Collection Act (IWPCA) introduce new obligations for employers regarding the issuance, retention, and access to paystubs.

Pay Stub Requirements
Employers must provide a pay stub that itemizes the following information:

• Hours worked: total hours worked during the pay period;
• Rate of pay: the hourly or salary rate;
• Overtime pay and hours: hours worked beyond the standard workweek and corresponding overtime pay;
• Gross wages: total earnings before deductions;
• Deductions: itemized deductions from wages (e.g., taxes, insurance)
• Year-to-date totals: total wages and deductions for the year;

Employer Obligations
Employers are required to issue a pay stub for each pay period, either in electronic or physical format. These pay stubs must be retained for at least three years, even if an employee leaves the company before this period ends. Employers must also respond to requests for pay stubs from current or former employees within 21 days. If the pay stubs are issued electronically, employers must ensure that employees have access to their pay stubs for at least one year after employment ends.

Limits on Requests
Employers can require that pay stub requests be submitted in writing. Employees are permitted to request pay stubs up to twice per year, and former employees can only request pay stubs within one year of their separation from the company.

Penalties for Noncompliance
Failure to comply with these requirements may result in civil penalties of up to $500 per violation, in addition to any damages or attorney’s fees related to other wage-related claims.

3. Expansion of Employee Rights to Access Personnel Records

The Illinois legislature amended the Illinois Personnel Records Review Act (IPRRA), imposing new obligations on employers navigating personnel record requests.  

Employee Obligations
The amendments to the IPRRA clarify that all requests for personnel records must be in writing, and made at “reasonable intervals,” but no more than twice per calendar year. Each request must:

• Clearly specify the records being requested or indicate if the employee is requesting all records permitted under the Act;
• Specify whether the employee is requesting to inspect the records, make copies, or receive copies;
• State whether the records should be provided in hard copy or a reasonable electronic format;
• Indicate whether a representative (family member, lawyer, union official, or translator) will handle the request; and
• If medical records are involved, include a signed waiver for the release of medical information to the designated representative.

The request must be directed to the designated record keeper (e.g., HR, payroll, or a supervisor) as specified in the employer’s policy.

Employer Obligations
Employees can request documents related to their employment, including:

• Personnel documents used to determine qualifications for employment, promotion, compensation, benefits, or disciplinary actions, now including benefits-related documents;
• Employment contracts or agreements the employer considers binding.
• Employee handbooks or policies the employer made available to the employee or that the employee acknowledged receiving.
• Written employer policies related to employment qualifications, promotions, compensation, or discipline.

Employers must comply with these requests within seven working days, though they may request an additional seven calendar days if they cannot meet the deadline. In complying with these requests, employers may charge a fee for copies, but the fee should only cover the actual duplication costs, excluding time or equipment expenses.

Certain documents, such as trade secrets, client lists, and financial data, remain protected from inspection under Section 10 of the Act, alongside existing exceptions.

Penalties
Employees may file a civil court action to enforce compliance with the Act. If the employee prevails, they are entitled to actual damages and costs. For willful and knowing violations, the employer must pay an additional $200, along with reasonable attorneys’ fees, costs, and actual damages. Employers who fail to comply with a court order may face contempt charges, and any employer or their agent who violates the Act is guilty of a petty offense.

Conclusion

Illinois employers should review and update their job posting practices, pay stub practices, procedures for handling employee personnel record requests, and recordkeeping systems to align with the new requirements. Employers with questions on the new amendments should reach out to Honigman’s Labor and Employment attorneys here.