Importantly, receipt of an Equal Pay Registration Certificate does not establish compliance with the Illinois Equal Pay Act. Note: The address for your business is the main business address you sue for correspondence whether inside Illinois our out-of-state. The request must be in writing and contain the employees name, date of hire, job title or classification, and the dates for the data being requested, with a signed affidavit from the employee and must also include evidence that the employee currently holds the specific job title at that business. MWH Law Group LLP is a certified minority-owned firm. Fostering Access, Rights and Equity (FARE), Wage Payment and Collection Act Penalties, Scheduled Hearings/Audiencias Programadas. What if an employer's wage data shows that it is not paying its employees equally? IDOL will then provide you with an EPRC application due date at least 120 calendar days before your application will be due. These FAQs are not to be considered complete and do not relieve employers from complying with applicable IDOL laws and regulations. This website uses cookies to improve your experience while you navigate through the website. Equal Pay Registration Certificate (EPRC) - FAQS - Illinois The Act permits IDOL to interview workers, take depositions, and subpoena witnesses testimony, personnel records, and compensation records in connection with a potential suspension or revocation of an EPRC. Wages as reported on an employees W2-Box 5 should have the most complete information for the purposes of EPRC data reporting. However, Illinois is the first state to seek employee-level pay information and the first to require that employers receive an equal pay registration certificate. We may simply have to wait for additional guidance from the IDOL on how exactly it will release certain information. Wages means any compensation paid to an employee by an employer pursuant to an employment contract or agreement between the two parties, including wages, salaries, earned commissions, deferred compensation, earned bonuses, stocks and ownership shares. Transactional Attorney (Business & Employment). Megan M. Regennitter, Senior Associate1501 42nd St. Suite 465West Des Moines, IA 50266P: (515) 453-8509 / F: (515) 267-1408E: megan.regennitter@mwhlawgroup.com. While employers have significant lead time to begin their compliance efforts, SB 1480 will render employers diversity efforts more transparent by making public their EEO-1 reports, which will be published on a state website beginning in early 2023. These reports will not include any individually identifiable business or personal information. An Equal Pay Compliance Statement must be submitted as part of your EPRC application. 14. Remedies include, but are not limited to: Because SB 1480 has been signed into law, employers need to begin taking steps to bring themselves into compliance, based on two key dates: (1) employers will need to be prepared for their EEO-1 reporting obligations in the state of Illinois as of January 1, 2023; and (2) employers should consider conducting privileged EEO audits, with the assistance of legal counsel, to identify any changes that may be required for obtaining an equal pay certificate, which will be required as of March 24, 2024. by adding Section 11, which requires all private employers with 100 or more employees in Illinois to submit demographic and wage data to IDOL, along with a filed Annual Employer Information Report EEO-1 (IDOL has administratively suspended the EEO-1 filing requirement for businesses given an original deadline filing date in the calendar year 2023) and an Equal Pay Compliance Statement certifying that, among other things, the average compensation for its female and minority employees is not consistently below the average compensation for its male and non-minority employees. Will an employer's wage data be publicly available? IDOL may also share data with the Department of Human Rights to ensure compliance with the Act. Falsification or misrepresentation of information on an EPRC application submitted to IDOL is a violation of the Equal Pay Act and IDOL may seek to suspend or revoke an Equal Pay Registration Certificate or impose civil penalties up to $10,000. What changes will the Illinois Department of Labor be making to application process for 2023? The second round will occur in March 2024. Illinois Pay Data Report SB 1480 was signed into law, and later amended by SB 1487 in 2021. The Illinois legislature amended the states Equal Pay Act of 2003 (EPA) requiring employers to regularly seek and obtain an equal pay registration certificate from the Illinois Department of Labor (IDOL). Seyfarth Synopsis: On January 25, 2022, IDOL sent out additional communications regarding the upcoming Illinois Equal Pay Registration Certificate obligations. These legislative changes are intended to promote pay transparency and ensure that all Illinoisians, regardless of their background, receive equal pay for substantially similar work they do on behalf of an employer. But opting out of some of these cookies may have an effect on your browsing experience. 21. The state also required that certain employers receive an Equal Pay Registration Certificate verifying compliance with federal and state anti-discrimination laws, including Title VII of the Civil Rights Act of 1964, the Equal Pay Act of 1963, the Illinois Human Right Act, the Equal Wage Act, and the Equal Pay Act of 2003. Maryelena concentrates on designing affirmative action programs and advising government contractors on implementation of the systems and processes necessary to comply with Executive Order 11246, the Rehabilitation Act, and the Vietnam Era Veterans Readjustment Assistance Act. Berkshire is a human resources consulting and technology firm that specializes in helping companies build their ideal, balanced workforce. 16. A sample data template is available here. A current employee of a business subject to Section 11 may request anonymized data regarding their job classification or title and the pay for that classification. IDOL sent out notices on January 25th to 625 employers, notifying them that they will be required to submit their applications by May 25, 2022. These reports are not required to be kept confidential, but they will not include any data that could be associated to any individual business or person. The business complies 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; The average compensation for its female and minority employees is not consistently below the average compensation for its male and non-minority employees, as determined by the U.S. Department of Labors rule, within each of the major job categories in the EEO-1 report, taking into account factors such as length of service, requirements of specific jobs, experience, skill, effort, responsibility, working conditions of the job, or other mitigating factors; The business does not restrict employees of one sex to certain job classifications and makes retention and promotion decisions without regard to sex; The business corrects wage and benefit disparities when identified to ensure compliance with the above-cited Acts; How often wages and benefits are evaluated to ensure compliance with the above-cited Acts; and. If you need a legal opinion, we suggest you consult your own legal counsel. How long do I have to file a claim? What is the minimum they can pay a non-tipped employee? To embed, copy and paste the code into your website or blog: Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra: [Ongoing] Read Latest COVID-19 Guidance, All Aspects, [Hot Topic] Environmental, Social & Governance. Tentative Deadlines Announced for Federal [Updated] California Department of Fair the date the employee started working for the business; any other information the IDOL deems necessary to determine if pay equity exists among employees (presumably, the IDOL will provide additional guidance on this requirement); and. To obtain the certificate, businesses will have to provide workforce compensation data to the IDOL and affirm compliance with several federal and state pay equity statutes. The Department will require employers to submit the total hours worked by each employee during the payroll year. Join veteran employment attorney Maryelena Zaccardelli of Michael Best & Friedrich and Berkshires pay equity powerhouse Dr. Thomas Carnahan to learn more about the ins and outs of the Illinois Equal Pay Registration Certification requirements. When SB 1480 passed in March 2021, Illinois became the first state to require employee-level pay data reporting rather than aggregate workforce data. These employers should audit their payroll records to identify issues and consult with counsel, as necessary during the process. What does "wages" mean for reporting purposes? the approach the business takes in determining what level of wages and benefits to pay its employees. IDOL is requesting three email contacts to ensure that future communications will reach someone within the business. If you created a login for a business/EIN that has less than 100 employees, then you must 1) complete the Exemption/Business Name Change Form as previously directed AND 2) remove the created Public ID/Login from the EPRC Portal. Illinois Begins to Issue Compliance Deadlines for Equal Pay Reporting If you have employees who have chosen not to identify their race and/or gender, you may select "choose not to identify" for the applicable category or categories. You are required to submit your initial EPRC application between March 24, 2022 and March 23, 2024. The Illinois Equal Pay Registration Certificate will require that covered employers provide employee-level compensation data as well as certify compliance with equal pay principles and certain federal and state equal pay laws. 2Section 2 of the Wage Payment and Collection Act states in relevant part, For all employees, other than separated employees, wages shall be defined as any compensation owed an employee by an employer pursuant to an employment contract or agreement between the 2 parties, whether the amount is determined on a time, task, piece, or any other basis of calculation. 820 ILCS 115/2. No individually identifiable information may be provided to an employee making such a request. The FAQs provide additional detail on which employers are subject to the registration requirement, how employers can apply for the certificate, and potential penalties for non-compliance. Before revocation, IDOL is obligated to conciliate with the business concerning wages and benefits it contends are due to employees. that the business in compliance with the Equal Pay Act and other relevant laws, including but not limited to, Title VII of the Civil Rights Act of 1964 (42 U.S.C. Whistleblower Protection: SB 1480 defines retaliatory action as the discharge, reprimand, demotion, suspension, denial of promotion or transfer, or any other change in the terms and conditions of employment that is taken against an employee in retaliation for the employees engaging in protected activity. To report any difficulties submitting a wage claim online form, please contact IDOL at 312-793-2800 or via e-mail at DOL.Questions@Illinois.gov. What You Need to Know About Illinois' Senate Bill 1480 For instance, job categories and average wages may be supplied and broken down by race, gender, and other markers. January 2023: Reporting and publishing equal pay data begins. If you have any questions about your business reporting requirements, please reach out to Megan M. Regennitter, MWH Law Group LLP, at megan.regennitter@mwhlawgroup.com. 19. The California reporting requirements become effective this week, compared to Illinois far longer runway for employers to comply with its new law (i.e., pay data reporting begins January 1, 2023 and employers must obtain an equal pay registration certificate by March 24, 2024). Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Can I file a Wage Claim? What is the current/historical minimum wage in Illinois? Before a penalty is imposed, IDOL will notify the employer of their failure to file a registration application or recertification and provide 30 days for the employer to cure the failure. How do I report gender or race for employees who choose not to self-identify those categories? We also use third-party cookies that help us analyze and understand how you use this website. Her lengthy experience as both an employment attorney and consultant make her uniquely qualified to provide this key strategic advice. Overall deadlines are as follows: Even if an applicable employer does not receive a notice, a business subject to the Illinois pay data reporting requirement must nonetheless apply for an equal pay registration certificate from the IDOL. Berkshire is a human resources consulting and technology firm that specializes in helping companies build their ideal, balanced workforce. Who must report: private employers of over 100 people. It is mandatory to procure user consent prior to running these cookies on your website. Average annualized salaries paid to male and female employees; Information on performance payments, benefits, or other elements of compensation; Average length of service for male and female employees in each major job category; and. Illinois law requires private businesses with 100 or more employees in the State of Illinois* to submit an application to obtain an Equal Pay Registration Certificate (EPRC) by providing certain pay, demographic, and other data to the Illinois Department of Labor (IDOL) by March 24, 2024, and to recertify every two years after the first submission. In order to access the system, claimants will first need to create an Illinois Public ID account. Please find all Wage Payment and Collection Act Hearings scheduled by the Illinois Department of Labor here. The saying what gets measured gets improved is right on the money when it comes to pay data reporting. Littler will closely monitor these new employer reporting requirements under Illinois law, and will provide additional updates as the state issues new guidance. Whether the business utilizes a market pricing approach, state prevailing wage or union contract requirements, performance pay system, internal analysis, or an alternative approach in setting compensation. IDOL will assign you an application due date that is within this timeframeand will notify you of this due date at least 120 days before your application will be due. Which businesses are required to obtain an Equal Pay Registration Certificate and when? For determining the requirement to certify, the total number of employees is the total number of individuals employed by the business who physically worked in Illinois AND who worked outside of Illinois but reported to management in Illinois or were based out of Illinois onDecember 31 of the calendar year immediately preceding to your reporting deadline. The Department cannot offer individuals legal advice or offer advisory opinions. The high-dollar award came last year in the first biometric privacy class action to go to trial in the state. In addition to providing carefully crafted affirmative action programs, Maryelena works with the human resources personnel, company counsel, and senior executives in implementing legal and human resources strategies surrounding affirmative action compliance. How to get started: create an account on the Illinois Department of Labor website. Where can I find the hearing notices/order for Prevailing Wage Section 9 hearings? However, Illinois is the first state to seek employee-level pay information and the first to require that employers receive an equal pay registration certificate. List of all employees in the past year separated by gender and race per the employers most recent EEO-1 report, which is a required annual workforce demographic report for private employers and federal contractors with a certain number of employees; and. As always, Seyfarths Global Pay Equity Groups attorneys are available to assist employers in navigating these new requirements and ensuring that they are ready for the ongoing trend toward greater pay transparency generally. These reports are further broken down by employee compensation data categorized using the U.S. Bureau of Labor Statistics 11 pay bands, ranging from less than $19,239 to more than $208,000, and again by race, ethnicity, and sex. The Illinois Equal Pay Act allows currently employed individuals to request anonymized data for the pay rates of employees in their job title or job classification limited to their employer and limited to county where the employee works. A step-by-step Power Point instruction guide can be found on the EPRC Home Page. 5. e-Alert: Illinois Pay Data Reporting | HR Knowledge If you did not receive an email, please send an email to, Import or upload a list of all employees during the calendar year immediately preceding your application due date separated by gender, race, and ethnicity categories as reported to in the most recently filed EEO-1 in a text-searchable, sortable Microsoft Excel file or comma-separated values file format, as well as any other information required by IDOL (a sample template for wage data can be found at. The law requires Illinois employers with 100 or more employees to obtain an Equal Pay Registration Certificate among other requirements. Sequoia.com uses cookies to deliver the best possible website experience. Illinois Minimum Wage Equal Employment Opportunity Commission (EEOC), but not the public, can access these reports. What is an Equal Pay Compliance Statement? IDOL is permitted to compile aggregate data and reports based on the wage data submitted by employers. Qu tipo de reclamos atiende el Departamento de Trabajo? Illinois recently enacted SB 1480, which amends several laws including the Illinois Business Corporation Act and the Illinois Equal Pay Act. As of January 1, 2023, amendments to the Illinois Equal Pay Act will now require many Illinois employers to report employee-level pay data to the states Department of Labor (IDOL), and will permit employees to see pay data from their companies when requested. Employers should also keep an eye out for developments surrounding the proposed rule and additional guidance in the coming weeks, which will likely inform the best approach to compliance with the law. How does an employee request information about their employer? All Rights Reserved, June 21, 2023 Emerald Law Sequoia One PEO Guidance, May 31, 2023 Emerald Law Sequoia One PEO Guidance, Trust Center Privacy Terms License Business Resiliency. Based on the newly enacted Illinois bill, any private employer with 100 or more employees in the state will be required to obtain an equal pay registration certificate from the Illinois Department of Labor (or certify in writing that it is exempt). IDOLs decision to issue, deny, revoke or suspend an EPRC is considered public information. How to Claim Google Class Action Privacy Settlement Money - The New Workers will be able to ask for pay information that correlates to certain job titles. Thomas holds a Ph.D in Industrial/Organizational Psychology and his background includes working for small boutique firms, Fortune 100 companies, and as a professor of business and statistics at US and International Universities. Find out these answers and more in our FAQ. Rejection or Revocation of Certificate: Within 45 calendar days of receipt of application, the Illinois Department of Labor will issue an equal pay registration certificate. A Request for Data Form is available at Equal Pay Registration Certificate Request for Data Form. IDOL will be providing webinar training sessions regarding the upcoming submission process. page to access the online portal that businesses must use to submit their contact information and required data to IDOL, a training guide for use of the portal, a compliance statement template, and other certification information and resources. The IDOL will issue equal pay registration certificates to employers that submit detailed pay data and state that they have satisfied their obligations under the Illinois EPA. SB 1480 Illinois Pay Data Report FAQs | OutSolve Overview of the Illinois Equal Pay Registration Certificate. Under the amendment, employers must pay a $150 . The information provided in the FAQs is intended to enhance public access and understanding of IDOL laws, regulations and compliance information. These laws amended theEqual Pay Act of 2003(820 ILCS 112 et seq.) May 17, 2022 by Lizet Ramirez in Sequoia One PEO Guidance. To report any difficulties submitting a wage claim online form, please contact IDOL at 312-793-2800 or via e-mail at DOL.Questions@Illinois.gov. How long will it take to receive a hearing judgment? Equal Pay Registration Certificate Portal. Annual ECA Report Submissions If you are in this situation and receive a notice from the IDOL to recertify, you must complete theExemption-Business Name Change Formand send to DOL.EPRC@Illinois.gov. Reporting includes a list of all employees broken down by gender and race, similar to the employers most recent EEO-1 Report,[1] total wages[2] paid to each employee, and an Equal Pay Compliance Statement. Which complaints can I file with the Department of Labor? Seyfarth Shaw LLP var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); | Attorney Advertising, Copyright var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); JD Supra, LLC. Accordingly, we anticipate that IDOL will provide further information in the rulemaking process or as part of additional guidance for employers. Existing Business: ONLY employers with 100 or more employees in Illinois AND that are required to file an EEO-1 with the Federal Equal Employment Opportunity Commission (or their holding company is required to file and EEO-1) are required to obtain an Equal Pay Registration Certificate. Each employer covered under this new law will be required to submit a copy of its most recently filed EEO-1 for each county in which the business has a facility or employees, except that a business that has employees in multiple locations shall submit a single applicationregarding all of its operations in Illinois. More drastic is the requirement under this new Illinois law to compile a list of all employees during the past calendar year, separated by gender and the race and ethnicity categories, as included in the EEO-1 report, and report the total wages as defined by Section 2 of the Illinois Wage Payment and Collection Act paid to each employee during the past calendar year, rounded to the nearest hundred dollar2Each covered employer requesting an equal pay certification certificate must submit a detailed report. IDOL may compile and publish such aggregate data, including job category and average hourly wages by county for each gender, race and ethnicity category. Illinois Makes History in Anti-Discrimination Legislation. Some 625 employers received notice they were selected to be in the group with the first deadline: May 25, 2022. If an employee simultaneously works for a single employer in different classifications or with different titles, the business should upload a document with an explanation which lists the employees involved to the document section of the portal. Please note that this information may be subject to change based on legislative changes. Berkshire is a human resources and technology firm specializing in affirmative action, pay equity, and DEI&A. 10. Accordingly, it is important to submit contact information to IDOL. We anticipate that IDOL will release a proposed rule followed by a notice and comment period. In March 2021, Illinois became the second state to require that private employers produce workforce demographic and pay data. Who must obtain certification: private employers of over 100 people. The online complaint process guides claimants through the steps to submit a complete and accurate claim. Based on the express terms of the statute, these new reporting requirements will begin on or after January 1, 2023. It is unclear how IDOL will make such determinations, so we expect that additional guidance on this point will be forthcoming. This information and any questions as to your specific circumstances should be reviewed with your respective legal counsel and/or tax advisor as we do not provide legal or tax advice. Audit: The Illinois Department of Labor may audit a businesss compliance by requesting the following information regarding employees who are expected to perform work under the contract in each of the major job categories in the EEO-1 report: Penalty: Any business that falsifies or misrepresents information on its application, does not obtain an equal pay registration certificate, or whose certificate is suspended or revoked after Department investigation may be penalized in an amount equal to 1% of the businesss gross profits. Thomas Carnahan, Ph.D is Berkshires Compensation Services Manager. certify that there is no wage disparity for women or minorities. Section 11 of the Equal Pay Act allows IDOL to compile aggregate data and reports based on the wage data submitted that include the job category and the average hourly wage by county for each gender, race, and ethnicity category on the EPRC applications. SB 1480 expressly provides that the Secretary of State shall publish the data on the gender, race, and ethnicity of each corporations employees on the Secretary of States official website within 90 days of receipt. The best form to import data is in a CSV file. Where data will be available: IDOL will provide data in response to individual employee requests about their employers. Violations of the EPAs reporting and certification requirements carry penalties of up to $10,000. There are no suggestions because the search field is empty. The firm has more than 400 legal professionals, including more than 300 attorneys, serving clients in 19 offices across the U.S. in Colorado; Illinois; North Carolina; Texas; Utah; Washington, D.C.; and Wisconsin. On April 12, 2022, the Equal Pay Registration Certificate portal opened for the first batch of employers to submit their EPRC applications. 17. Build a Morning News Digest: Easy, Custom Content, Free! How do I report data for an employee who was terminated/separated/laid off and was then rehired? Illinois SB 1480 Establishes Pay Data Reporting Obligations for Private Beginning March 24, 2022 through March 23, 2024, the new payroll reporting obligations under the Illinois Equal Pay Act (IEPA) require private employers in Illinois with 100 or more employees to register and report extensive payroll information to the Illinois Department of Labor (IDOL), to certify compliance with pay equity and anti-discrimination laws in order to comply with the IEPA, and to .