Total wages as defined by the IWPCA paid to each employee in the past year. Equal Pay Registration Certificate Process Flowchart, Equal Pay Registration Certificate Request for Data Form, See Subpart H of the Administrative Rules, To create an Illinois Public ID Account, click. As a first step, covered employers should submit contact information to IDOL if they have not already done so to ensure they receive timely communications from the Department. Is EPRC Data and Information Publicly Accessible? Monday, March 14, 2022 Across the country, states are enacting new pay equity laws to address pay inequities for women and minorities, and Illinois is no exception. Illinois recent pay data reporting legislation might seem onerous for employers, but in the long run, it will help them avoid costly pay discrimination litigation. In order to access the system, claimants will first need to create an Illinois Public ID account. This includes information that is associated with a specific individual or a business. How do I report data for an employee who was terminated/separated/laid off and was then rehired? On March 24, 2022, a new pay data reporting requirement will take effect for certain private employers in Illinois. 12. Berkshire is a human resources and technology firm specializing in affirmative action, pay equity, and DEI&A. The Act also allows IDOL to suspend or revoke the EPRC of an employer who fails to make good faith efforts to comply with the Act or if the employer has multiple violations of the anti-discrimination statutes with which it certifies compliance as part of the EPRC application. Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. What if I have a question on how to Report Data? What Does This Mean for Illinois Employers? May 17, 2022 by Lizet Ramirez in Sequoia One PEO Guidance. Please email, Wage Payment and Collection Act Penalties, Equal Pay Registration Certificate (EPRC), State Construction - Minority and Female Building Trades Act, Victims' Economic Security and Safety Act, Whistleblower - Environmental Protection Act, Worker Adjustment and Retraining Notification 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. Will you require special assistance due to an impairment? 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. My total employee count has dropped below 100, but I just received a letter from IDOL with a recertification due date. Once a new business has received an Equal Pay Registration Certificate, it is required to recertify every two years after the initial certification was issued. Before any fines can be imposed for a violation of Section 11(b) of the Equal Pay Act, IDOL shall provide notice to an employer with 100 or more employees who violates Section 11(b) and inadvertently fails to file an initial EPRC application or recertification that they have 30 calendar days to submit the application or recertification. This will provide the Department with further context and information with which to evaluate pay equity between employees. Within 45 days of receiving an application, the IDOL is required to issue an equal pay registration certificate or issue a statement explaining why it has rejected the employers application. Illinois Begins to Issue Compliance Deadlines for Equal Pay Reporting 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. It also allows claimants to log-in and check the status of their wage claim at their convenience. 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. When applying or recertifying for an equal pay registration certificate, employers must compile a list of all employees during the past calendar year separated by gender, race and ethnicity as it appears in the employers most recently filed EEO-1 report, and in the list include the following: Covered employers must also submit a copy of the business most recently filed EEO-1 to the IDOL. Before revocation, IDOL is obligated to conciliate with the business concerning wages and benefits it contends are due to employees. IDOL will be providing webinar training sessions regarding the upcoming submission process. New Businesses: New private businesses with 100 or more employees in Illinois and that are required to file with the Federal EEOC an EEO-1 with the Federal Equal Employment Opportunity must visit the [EPRC Business Registration Page]; IDOL will then provide you with an EPRC application due date 120 days before your application will be due. 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. We expect that IDOL will issue proposed rules and potentially guidance materials to assist employers with the submission process. Application: To apply for an equal pay registration certificate, businesses will be required to submit the following to the Illinois Department of Labor: Compliance Statement: An appropriate compliance statement, signed by a corporate officer, legal counsel, or authorized agent of the business, must certify the following: Multiple Locations: A business that operates in multiple locations or has multiple facilities within the state should submit a single application regarding all its operations in Illinois. Where can I find the hearing notices/order for Prevailing Wage Section 9 hearings? Click "Create a new Account" and complete the registration form. 20. Employers Wages as reported on an employees W2-Box 5 should have the most complete information for the purposes of EPRC data reporting. June 14, 2023. 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. Illinois Will Require EEO-1 Transparency and Equal Pay Data Littler will closely monitor these new employer reporting requirements under Illinois law, and will provide additional updates as the state issues new guidance. The Department will require employers to submit the total hours worked by each employee during the payroll year. Employers will be required to obtain an equal pay registration certificate no later than March 24, 2024. The Illinois Department of Labor (IDOL) launched an online wage claim application to modernize the wage claim process. How long will it take to receive a hearing judgment? How does a business apply for an exemption? By Meg Karnig, Paul Newendyke, and Barry Hartstein on, General Data Protection Regulation (GDPR), Global Workplace Transformation Initiative. 10. Falsification or misrepresentation of information on an application may result in: (1) suspension or revocation of Equal Pay Registration Certificate or (2) civil penalties of up to $10,000. Currently, IDOL is notifying covered employers via mail of their initial application due dates within this time frame, providing at least 120 days to submit the application. The reporting and equal pay data publishing requirement applies to private employers with 100 or more employees. Section 11 of the Equal Pay Act of 2003 (820 ILCS 112/11) is directed at covered businesses private employers with more than 100 employees in the state of Illinois, who are also required to file an EEO-1 with the U.S. Reports are made electronically on a biennial basis, for a current filing fee of $150.00. Illinois SB 1480 Establishes Pay Data Reporting Obligations for Private Were ready for your tomorrow because were built for it. Public employers are government agencies, school districts, and other sub-entities of government. Stephen Joyce. No individually identifiable information may be provided to an employee making such a request. 17. How do I report data for an employee who has differing pay rates in one reporting period? 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. Clients rely on Maryelenas experience and ability to provide practical advice and compliance strategies tailored to their business and corporate environment. 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. Megan M. Regennitter, Senior Associate1501 42nd St. Suite 465West Des Moines, IA 50266P: (515) 453-8509 / F: (515) 267-1408E: megan.regennitter@mwhlawgroup.com. An Equal Pay Compliance Statement signed by a corporate officer, legal counsel, or authorized agent of the business. I Filed A Wage Claim, What Do I Do Next? Illinois Equal Pay Reporting Obligations Are Here for Many Illinois Anyone who clicked on a Google search result link from October 2006 to September 2013 is entitled to a piece however small of a $23 million settlement that the tech giant . Such data may be shared with other state agencies, such as the Illinois Department of Human Rights and the Office of the Attorney General. These laws amended theEqual Pay Act of 2003(820 ILCS 112 et seq.) DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. For more information about EEO-1 reporting please visit our blog article Tentative Deadlines Announced for Federal EEO-1 Reporting in 2022. Acceptable evidence includes pay stubs, work schedules, a hire letter, a work ID, business cards, and company website listings. I do not have gender or race data for some of my employees, but this data is required in the EPRC application. The information provided in the FAQs is intended to enhance public access and understanding of IDOL laws, regulations and compliance information. The application consists of three components: Wage Records EEO-1 Report: The business' most recently filed EEO-1 Report. Public Employers: Public employers are not required to obtain an Equal Pay Registration Certificate. Build a Morning News Digest: Easy, Custom Content, Free! Reporting and Disclosure of an Employers EEO Breakdown. Based on SB 1480, Illinois employers currently required to file an EEO-1 report will now be required to submit a similar report to the state of Illinois that includes information that is substantially similar to the employment data reported under Section D of the federal EEO-1 Report. According to the new law, the specific details will be provided based on a format approved by the Secretary of State.. The California statute mirrors the short-lived federal EEO-1 Component 2 filing adopted during the Obama administration, which required pay data reporting in addition to the traditional Component 1 employee reporting breakdown by sex, race, ethnicity, and job categories. Normalizing open conversations around equity in compensation ultimately will benefit both employers and employees by reducing time and energy spent on speculation and distrust. We are also hopeful that IDOL will provide additional guidance or FAQs regarding the many open questions that remain. 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. 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. Qu tipo de reclamos atiende el Departamento de Trabajo? The FAQs should not be considered a substitute for the appropriate official documents (i.e. Covered employers will have to provide (1) demographic and wage data (see the next section for content requirements), including a copy of their most recently filed EEO-1 report; (2) a statement certifying the employers compliance with various equal pay and discrimination laws; and (3) a $150 filing fee. How does an employee request information about their employer? Questions Scheduled Hearings/Audiencias Programadas Please find all Wage Payment and Collection Act Hearings scheduled by the Illinois Department of Labor here. In June 2021, Governor. Jakie skargi mona zoy w Departamencie Pracy? If you have not created an account/login, you must first create an Illinois Public ID Account: To complete the Application Process (after a login is created): A flow chart of the EPRC application process can be found at Equal Pay Registration Certificate Process Flowchart. THE PAID LEAVE FOR ALL WORKERS ACT TAKES EFFECT JANUARY 1, 2024. What happens to businesses who do not comply with the Equal Pay Registration Certificate requirements of Section 11 of the Equal Pay Act? 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. 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. If IDOL denies the exemption, IDOL will issue a notice stating the reason why the exemption is denied with a notice advising the business it has 30 calendar days to complete its registration or re-submit an exemption/business name change form. 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. Illinois Pay Data Reporting - Are You Ready? certify that there is no wage disparity for women or minorities. These cookies will be stored in your browser only with your consent. If you have not been contacted by IDOLand have not provided IDOL with your contact information, please send an email to DOL.EPRC@Illinois.gov for further instructions. This category only includes cookies that ensures basic functionalities and security features of the website. Section 9 Hearings Other information identified by the business or by the Illinois Department of Labor as needed to determine compliance with above-specified requirements. In addition, consider implementing a process to ensure that information provided to the Department is updated if key contacts change positions or leave the organization. Reinstatement to the same position or an equivalent one; Reinstatement of seniority and full fringe benefits; and. The following are the key factors to be considered in preparing for compliance with Illinois new equal pay initiative: Timeline: Employers have a three-year ramp up period to comply with the new law. And it will create a healthier culture for employees, allowing them to focus on their work rather than worrying that theyre getting shorted. The business may provide any other information it believes is relevant to explain any pay disparities amongst its employees. Under the amendment, employers must pay a $150 . Please visit IDOL's Equal Pay Registration Certificate 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. 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. The most challenging of employer obligations is the submission of employee pay data. A current employee of a business may request data for their own job classification or job title and the pay for that job classification or job title. We harness the power of our attorneys diverse backgrounds to provide a broader and more complete perspective for our clients. Illinois Department of Labor 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. Any contractor who has construction services performed for it by an individual, sole proprietorship or partnership that is not an employee of the contractor must file a report by April 30, 2022 with the Department of Labor. BNSF was found liable for collecting . Who must obtain certification: private employers of over 100 people. Below are answers to frequently asked questions regarding the Equal Pay Registration Certificate and what is required of businesses that are required to obtain a certificate. Disclosing or threatening to disclose activity, inaction, policy or practice implemented by the business that the employee reasonably believes is in violation of a law, rule, or regulation; Providing information or testifying before a public body conducting an investigation, hearing, or inquiry into any violation of a law, rule, or regulation by a nursing home administrator; or. The EPA also prohibits employers from paying African American employees less than other employees who are not African American for the same or substantially the same work. Employers are also required to report total hours worked by each employee in a given pay band during the calendar year.1. Sequoia.com uses cookies to deliver the best possible website experience. The amendments generally require private employers with 100 or more employees in the State of Illinois to obtain an "equal pay registration certificate" from the Illinois Department of Labor and expand certain reporting requirements, making the law one of the most far-reaching state equal pay laws in the United States. News & Analysis Insight Illinois Will Require EEO-1 Transparency and Equal Pay Data By Meg Karnig, Paul Newendyke, and Barry Hartstein on March 29, 2021 Illinois recently enacted SB 1480, which amends several laws including the Illinois Business Corporation Act and the Illinois Equal Pay Act. IDOL is permitted to compile aggregate data and reports based on the wage data submitted by employers. The updated law will also eventually require companies to certify that they are not consistently under-paying female and minority employees. March 2024: Equal Pay Registration Certificate requirement takes effect. 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. Payment Methods Covered businesses must submit an application to the Illinois Department of Labor (IDOL) for an Equal Pay Registration Certification (EPRC). The best form to import data is in a CSV file. What happens if an employer falsifies or misrepresents information in their Equal Pay Registration Certificate application? In light of the upcoming requirements, employers are encouraged to proactively evaluate their compensation to identify and correct any pay equity concerns. Michael Best is a leading law firm, providing a full range of legal services to clients around the world. IDOL will email covered businesses times and dates of the training sessions, as well as a process to sign up. In March 2021, Illinois became the second state to require that private employers produce workforce demographic and pay data. Who must report: private employers of over 100 people. the approach the business takes in determining what level of wages and benefits to pay its employees. IDOL will then provide you with an EPRC application due date at least 120 calendar days before your application will be due. Complete the Form Below to View FAQs. IDOL has been collecting contact information from businesses with operations in Illinois since late last year, and has started assigning specific deadlines to employers for their first applications. With nearly 40 years of experience in the industry, Berkshire is among the most trusted names in the business. OutSolveexperts in pay equitycompiled an easy-to-understand list of the most pertinent . Importantly, receipt of an Equal Pay Registration Certificate does not establish compliance with the Illinois Equal Pay Act. 3. 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. statute and/or administrative rules.) 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. 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. 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.

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