Illinois recently passed a new law amending the Illinois Equal Pay Act to prohibit employers and recruiters from asking job applicants for their past wage, salary, and compensation histories. The new law went into effect on September 29, 2019. It applies to all Illinois employers and provides stiff consequences for any employers found violating the law. This article contains key information to help Illinois employers understand and comply with the new law.
Individuals Covered by the New Provisions of the Illinois Equal Pay Act
The new law applies to Illinois job applicants, including applicants for part-time and full-time positions and applicants for temporary and permanent positions. The law applies regardless of whether the position is hourly or salary. It does not, however, apply to independent contractors.
Actions Now Prohibited by the Illinois Equal Pay Act
The new law prohibits employers and recruiters from screening job applicants based on their current or prior wage and salary histories, including benefits and other compensation. Specifically, under the new law, an employer may not require that an applicant’s wage or salary history satisfy minimum or maximum criteria. In addition, employers and recruiters may not request wage or salary history from a job applicant as a condition of the applicant’s consideration for employment or as a condition of employment.
Further, employers and recruiters may not ask a job applicant’s current or former employer for the applicant’s wage or salary history, including benefits or other compensation. The only exceptions to this prohibition are: (1) if the job applicant’s wage or salary history is a matter of public record or (2) the job applicant is currently employed by the employer and is applying for a position with the same employer.
Actions Permissible under the Illinois Equal Pay Act
Illinois employers and recruiters may provide information to job applicants regarding the position’s wages, salary, benefits, and other compensation. In addition, employers should feel free to discuss with a job applicant his or her expectations with respect to wages, salary, benefits, and other compensation. In engaging in such discussions, however, the employer must be very careful not to do or say anything that would prompt a job applicant to disclose his or her wage or salary history.
If a job applicant voluntarily and without prompting discloses his or her current or prior wage or salary history, including benefits and other compensation, the employer is not in violation of the new law. However, if a job applicant voluntarily discloses such information, employers may not consider or rely on the voluntary disclosures as a factor in determining whether to offer a job, in making an offer of compensation, or in determining future wages, salary, benefits, or other compensation.
Consequences of Violating the Illinois Equal Pay Act
If an employer violates the new provisions of the Illinois Equal Pay Act, the employer may face substantial monetary consequences. From the date of the violation, the injured employee has five years to bring a civil lawsuit against the employer for damages incurred and for other relief. In such a lawsuit, the employee may seek special damages (out-of-pocket expenses determined by adding together all of the employee’s quantifiable financial losses, such as lost wages) not to exceed $10,000.00. In a civil suit, the employee also may recover court costs and reasonable attorneys’ fees.
It is important that employers understand the new provisions of the Illinois Equal Pay Act and are careful not to run afoul of it as any violations could be quite costly.
For more information about this article, or Illinois employment law in general, please feel free to contact Albee Law PC via telephone at (312) 279-0115 or via email at info@albeelaw.com.
