Overview: Illinois has enacted legislation (House Bill 4743) that will expand the state’s Equal Pay Act to expressly prohibit pay differentials between African American employees and other employees. Previously, the Illinois Equal Pay Act prohibited pay differentials based on sex only.
Effective Date: January 1, 2019
Details:
Illinois has enacted legislation (House Bill 4743) that will expand the state’s Equal Pay Act to expressly prohibit pay differentials between African American employees and other employees. Previously, the Illinois Equal Pay Act prohibited pay differentials based on sex only.
Background:
Under the Illinois Equal Pay Act, employers with four or more employees are prohibited from paying wages to an employee at a rate less than another employee of the opposite sex in the same county for the same or substantially similar work on jobs that require equal skill, effort, and responsibility, and which are performed under similar working conditions. There are exceptions where the payment is made under a:
· Seniority system;
· Merit system;
· System that measures earnings by quantity or quality of production; or
· A differential based on any other factor other than sex or a factor that would constitute unlawful discrimination under the Illinois Human Rights Act.
House Bill 4743:
House Bill 4743 extends the same rules to African American employees. Effective January 1, 2019, employers with four or more employees are prohibited from paying an African American employee less than another employee in the same county who is not African American for the same or substantially similar work that requires equal skill, effort, and responsibility, and which are performed under similar working conditions.
Action Required: Illinois employers should review their pay practices and policies and consider training supervisors and others involved in making compensation decisions. Employers may also want to consider working with their legal counsel to complete an equal pay analysis. Keep in mind that employers are prohibited from reducing the pay of an employee to comply with the law.
As always, please be sure to contact your Human Resources Business Partner if you have any questions. This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.