FAQ: Navigating the Illinois Equal Pay Transparency Act in the PERM Process

We wanted to bring to your attention a significant legal development that may impact your company’s recruitment and PERM advertising in Illinois. Beginning January 1, 2025, the Illinois Equal Pay Transparency Act will require all employers with 15 or more employees, including both part-time and full-time workers, but excluding independent contractor, to disclose salary information and benefits in every job posting, including those used in the PERM recruitment process.

To help you understand how this may affect your business, including PERM advertising, please review the FAQ below. It provides an overview of the law, its requirements, and its implications for recruitment and compliance with the PERM labor certification process.

NOTE: Regulations require that advertisements used in the PERM recruitment process are posted for a minimum of 60 calendar days. As such, we recommend listing the salary and benefits information necessary to comply with the Act for any PERM recruitment starting on or after November 1, 2024, given that those ads will run into the new year when the law becomes effective.

1. 1. What is the Illinois Equal Pay Transparency Act?

Effective January 1, 2025, the Illinois Equal Pay Transparency Act (the “Act”) requires employers in Illinois to disclose pay scales and benefits in all job postings, both internal and external. This law aims to promote pay equity and transparency in hiring practices.

2. 2. Who is affected by the Act?

The Act applies to all Illinois employers with 15 or more employees, including both part-time and full-time workers, but excluding independent contractors.

3. 3. What information must be disclosed under this law?

Employers are required to include the salary or a salary range (e.g., minimum to maximum salary) and a general description of benefits (e.g., bonuses, health insurance, retirement plans) in every job posting. The information must be accurate and up to date.

4. 4. What happens if an employer fails to comply with the Act?

The Illinois Department of Labor will be responsible for enforcing this law and is empowered to establish rules required to implement and uphold the provisions of the law. Non-compliance with the Act can lead to penalties, including fines and potential legal action. Employers may also face reputational damage, which could impact their ability to attract talent.

5. 5. How does this impact the PERM labor certification process?

For employers going through the PERM labor certification process on behalf of a foreign national employee, this law will impact the mandatory recruitment process. Effective January 1, 2025, all Illinois employers with 15 or more employees must disclose the salary or a salary range and benefits in the required PERM job advertisements.

6. 6. How can employers prepare to comply with the Act?

Employers should:

• Consult with your internal or external employment counsel on general compliance with the new law. Minsky, McCormick & Hallagan, P.C. only handles U.S. immigration matters and can only advise on issues related to compliance with PERM regulations but cannot advise on general compliance with this Act.
• Review and update your job posting procedures to include the salary or a salary range and benefits description for all recruitment as of January 1, 2025.
• Train your HR and recruiters to comply with the law when posting jobs.

7. 7. Will a wide salary range always be acceptable in the PERM recruitment process?

Not necessarily. Your standard salary ranges may not always be suitable for PERM job advertising, as we cannot advertise any wages or employment terms that are less favorable than those provided to the sponsored employee. While it is possible to include a salary range, the lower end of the range must meet or exceed the offered PERM wage, which is determined by the higher of the two: either the prevailing wage or the wage paid to the sponsored employee.

8. 8. Does this law apply to remote positions outside of Illinois?

The pay disclosure requirements apply only to positions that:

• Will be performed, at least partially, within Illinois;

OR

• Will be performed outside of Illinois, but require the employee to report to a supervisor, office, or work site located in Illinois.

If one or both criteria above apply, the job posting must comply with the Act and include the required salary or salary range and benefits information.

We understand that these changes may raise questions. If you have any additional inquiries regarding the new rules, please don’t hesitate to reach out to an attorney at Minsky, McCormick & Hallagan, P.C. We’re here to help you navigate this important change.