New Equal Pay Laws to Take Effect in 2022

December 30, 2021

Illinois has joined the nationwide trend around the United States of states enacting equal pay laws. Starting in January 2022, the Illinois Equal Pay Act (the “Act”) amendments will take effect. Under the new changes to the Act, originally passed in 2003, employers with more than 100 employees will be required to obtain an “Equal Pay Registration Certificate” from the Illinois Department of Labor (Note: Businesses of less than 100 employees will need to certify that they are not subject to the requirements of the Act). The Department of Labor expects to begin rolling out these certificates as early as March of 2022.

In order to obtain an Equal Pay Registration Certificate, employers must certify to the Department of Labor that:

  1. They are in compliance with Title VII of the Civil Rights Act of 1964, the Equal Pay Act of 1963, the Illinois Human Rights Act, the Equal Wage Act, and the Equal Pay Act of 2003;
  2. Average compensation of their female and minority employees is not consistently below the average compensation for their male and non-minority employees within each major job category provided in the existing EEO-1 form;
  3. The business does not restrict employees of one sex to certain job classifications or make retention or promotion decisions with regard to sex;
  4. Wage and benefit disparities are corrected when identified; and
  5. Wages and benefits are evaluated with a frequency that ensures compliance with the Act.

Employers are also required to disclose the approach the business uses to set compensation and benefits, such as a performance pay system, a market pricing system, or a union contracting wage requirement. Companies are required to submit their existing EEO-1 to the Department and comply with all other disclosure requirements regarding demographic data specified in the Act.

The original compliance deadline for this certification has been moved, falling between March 2022 and March 2024, depending on the size/type of the business. Notices to businesses to begin the certification will be mailed starting as early as the first quarter of 2022.

If you have questions regarding compliance with the Illinois Equal Pay Act, contact the attorneys of Rock Fusco & Connelly, LLC.