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Illinois Pay Transparency Changes January 2025

Describes two changes Illinois passed around pay and wage transparency.

Overview

Illinois passed two changes in pay and wage transparency that employers should prepare to support in 2025. Amendments were made to the Illinois Equal Pay Act and the Wage Payment and Collection Act.

Both sets of requirement changes go into effect January 1, 2025.

Illinois Equal Pay Act Changes

The Illinois Equal Pay Act changes will require specific information to be present in all job postings in Illinois. The requirements include jobs that will physically be performed in Illinois and out-of-state work that reports to a supervisor or office within Illinois.

Job postings must include:

  • Wage or salary range
  • General description of benefits (other compensation, bonuses, stock options, etc)

Another element of the amendment is that employers must make current employees aware of all promotional opportunities within 14 calendar days of making any external job posting for the same position.

The amendment also includes a penalty structure, including fees for first, second, and third/subsequent offenses that range from $500.00 to $10,000.

Wage Payment and Collection Act Changes

The amendments to Wage Payment and Collection impact employer recordkeeping obligations. Employers must retain pay stubs for a minimum of three years after the date of payment.

The amendment also clarifies that the definition of a pay stub is:

An itemized statement or statements reflecting an employee’s hours worked, rate of pay, overtime pay and overtime hours worked, gross wages earned, deductions made from the employee’s wages, and the total of wages and deductions year to date

Upon request, employers must provide copies of pay stubs to current or former employees within 21 days of the request.  If an employer utilizes electronic pay stubs and a terminated employee will not retain access to the electronic system, the employer must then offer to provide a record of all pay stubs for the past year upon an employee's separation of employment. 

The amendment also includes a penalty of up to $500.00 per violation. 

How Can Paycor Help?

Paycor recruiting allows employers to add pay ranges to job postings to comply with pay transparency laws. 

For more information, see Recruiting: How to Add Pay Ranges to Your Job Postings

Agency Resources

Updated: April 30th, 2025 644 views


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