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Illinois Requires Employers to Disclose Pay Scales and benefits information in Job Postings

Friday, August 18, 2023 9:00 AM | Anonymous member (Administrator)

A new Illinois law that takes effect on Jan. 1, 2025, will require more transparency in job postings. Changes include disclosing pay scale and benefits. CATA Approved Partner SESCO provides free HR support to CATA members. Below are the changes required in the upcoming law.

  • The new law, which takes effect on Jan. 1, 2025, will require Illinois employers with 15 or more employees to disclose pay scale and benefits information to potential job applicants.
  • The new law applies to job postings where the position “will be physically performed, at least in part, in Illinois” or “will be physically performed outside of Illinois, but the employee reports to a supervisor, office, or other work site in Illinois.” Internal job postings and postings publicized by third parties, such as job search sites or recruiters, are also subject to these requirements.
  • The law also generally requires employers to “announce, post, or otherwise make known all opportunities for promotion to all current employees no later than 14 calendar days after the employer makes an external job posting for the position.”
  • Specifically, all covered job postings must include pay scale and benefits information. “Pay scale and benefits” information includes “the wage or salary, or the wage or salary range, and a general description of the benefits and other compensation, including, but not limited to, bonuses, stock options, or other incentives the employer reasonably expects in good faith to offer for the position, set by reference to any applicable pay scale, the previously determined range for the position, the actual range of others currently holding equivalent positions, or the budgeted amount for the position.” Providing a hyperlink with a job posting to pay scale and benefits information maintained on an employer’s website would satisfy the law’s requirements.
  • In addition to the posting requirements, covered employers must preserve for at least five years records that document at least the pay scale, benefits and job posting for each position as well as the prior requirements of name, address, occupation and wages of each employee.

Contact your HR and employment law partner if you have any questions. For assistance, contact SESCO at 423-764-4127 or by email at sesco@sescomgt.com.

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