Illinois Equal Pay Certification & Pay Equity Best Practices

We’re finding that more and more states are introducing legislation in relation to pay equity nowadays. The Illinois Equal Pay Certification is one of the many new laws that have been signed off. This legislation states that HR professionals in Illinois are required to register and apply for the new equal pay certification.

The employer must submit an affirmation that their practices and policies adhere to equal pay principles set forth in State and Federal laws. In this webinar, our experts will walk you through all of the details of the new Illinois Equal Pay Certification legislation. When doing this, they will provide some insights and knowledge to help your organization navigate the new legislation.

What is the Illinois Equal Pay Certification?

The Illinois Equal Pay Certification is an amendment to the Illinois Equal Pay Act of 2003. Signed by Governor J.B.B. Pritzker, the new law will come into effect beginning on March 23, 2024. Employers will need to:

• Certify compliance with the Equal Pay Act by obtaining an Equal Pay Registration Certificate (EPRC) from the Illinois Department of Labor (IDOL).
• Comply with the law if your organization is a private employer with more than 100 employees in Illinois (counted on December 31 of the prior year).
• Wait for IDOL to assign an application due date between March 24, 2022, and March 23, 2024 (notification given at least 120 days before your application will be due).

These are the key elements of the new law. Garry Straker, Vice President of Compensation Consulting at Salary.com, warns that Illinois-based employers need to consider all workers, even if they are remote. He says:

“The recent guidance indicates that ‘employees’ include those employees that may be working outside Illinois, whose work may be controlled or directed by a base in Illinois. So, you’re going to have to make sure that you’re including those folks in your headcount.”

What Must Your Business Submit?

The IDOL demands that your organization submit some documents to comply with the law. A business must submit:

• A copy of their most recent EEO-1 report filed with EEOC.
• A list of all employees in the past calendar year, categorized by gender and race/ethnicity with corresponding wages paid to each employee over that period.
• Any other information it believes is relevant to explain any pay disparities amongst its employees.
• An Equal Pay Compliance Statement signed by a corporate officer, legal counsel, or authorized agent of the business asserting that the business is in compliance with Title VII of the Civil Rights Act, the Equal Pay Act of 1963, the Illinois Human Rights Act, the Equal Wage Act, and the Equal Pay Act of 2003.

Let’s take a closer look at the Equal Pay Compliance Statement. Your organization will want to make sure that everything is in order before signing off on it, so let’s see what it contains:

1. Business is in compliance with relevant Federal and State laws.
2. Average compensation for 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 taking into account factors such as length of service, requirements of specific jobs, experience, skill, effort, responsibility, working conditions of the job, education or training, job location, use of a collective bargaining agreement, or other mitigating factors.
3. That the business does not restrict employees of one sex to certain job classifications and makes retention and promotion decisions without regard to sex.
4. That the business corrects wage and benefit disparities when identified.
5. Provide details of how often the business evaluates benefits and wages.
6. The approach the business takes in determining what level of wages and benefits to pay its employees.
7. A market pricingapproach
8. State Prevailing Wage or collective bargaining agreement
9. A performance pay system
10. An internal analysis
11. An alternative approach

As you can see, there is much to think about regarding this new adjustment in the law. When approaching this, you need to be aware of comparable jobs and the role of pay equity in your organization. It’s worth spending some time and considering how you can determine this.

It’s All About Pay Equity

Pay equity is at the heart of the new legislation in Illinois. To define pay equity, we can say that it is equal pay for comparable jobs that is internally equitable, externally competitive, and transparently communicated. Carol Ferrari, Vice President of Product Marketing at Salary.com, offers her take on pay equity and the Illinois Equal Pay Certification law:

“Yes, you need to comply with these Illinois legislations, but you also need to set a foundation for your organization to pay fairly and look at this analysis on an ongoing basis.”

Watch the Webinar to See What You Can Expect in the Future

Big changes are coming for employers in Illinois. If you want to hear more from our experts and find out what you can expect in the future, watch the webinar. Click the link here to watch now.