Monday, September 28, 2026
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Illinois
Key Takeaways
Impacted Employers: Private employers who have 100 or more employees in Illinois and are required to submit an employee pay and demographic data report to obtain an Equal Pay Registration Certificate (EPRC).
Effective Date: January 1, 2027
Summary: The Illinois Department of Labor (IDOL) has revised guidance indicating that, beginning January 1, 2027, employers submitting a pay data report must use an updated template, which will no longer have "prefers not to identify" as an option for reporting race or sex.
Next Steps: Covered employers should review their EPRC reporting and use the updated template for submissions due on or after January 1, 2027. Employers that currently use the "prefers not to identify" category for employee race or sex should review their data-collection practices and determine how they will collect and report demographic information consistent with the updated guidance.
The Details
Background
Illinois requires private employers with 100 or more employees in the state of Illinois to submit an application to obtain an EPRC by providing certain pay, demographic, and other data to IDOL and to recertify every two years.
The IDOL provides templates that employers use to submit such data online via the state portal. The original versions of the template allowed employers to select “prefers not to identify” for a given employee’s race or sex.
Updated Guidance and Template
In revised guidance in the form of answers to frequently asked questions, the IDOL indicates that, beginning Jan. 1, 2027, employers submitting employee data must use an updated template, and EPRC submission files that report “prefers not to identify” for employee race or sex will be rejected.
“Any business that wishes to address a particular employee's situation as part of their EPRC submission may upload an explanatory document as part of its EPRC submission, as we know businesses will continue to want to honor their employees' wishes whenever possible,” the revised guidance states.
The agency says it is making the change because increasing use of the option in EPRC submissions hindered the agency's ability to meaningfully enforce the Illinois Equal Pay Act.
2026 Filings
The revised guidance states that, for the remainder of 2026, the IDOL won’t reject submissions from employers who have already downloaded the previous version of the template and submit it with “prefers not to identify” entries. Instead, the IDOL states that if it receives a submission reporting "prefers not to identify" for a significant number of employees' race or sex in 2026, the agency will address the issue with the employer.
Preferred Methods of Identification
In the guidance, the IDOL reminds employers that voluntary self-identification by employees is the preferred method of identifying the race, sex, and/or ethnicity information required. The basic principles for self-identification are to:
- Offer employees the opportunity to self-identify.
- Provide a statement about the voluntary nature of this inquiry for employees.
The guidance provides the following language as an example.
“The employer is subject to certain governmental recordkeeping and reporting requirements for the administration of civil rights laws and regulations. In order to comply with these laws, the employer invites employees to voluntarily self-identify their race, gender, or ethnicity. Submission of this information is voluntary and refusal to provide it will not subject you to any adverse treatment. The information obtained will be kept confidential and may only be used in accordance with the provisions of applicable laws, executive orders, and regulations, including those that require the information to be summarized and reported to the federal government for civil rights enforcement. When reported, data will not identify any specific individual.”
Additional 2026 Updates
In 2026, the IDOL also made the following changes:
- Allowing businesses to download their prior EPRC submissions.
- Informing employers with rejected submissions of applicable time limits to edit their EPRC submissions so they can avoid additional fees.
- Clarifying job classification to be used in EPRC pay data reporting in statute and rule.
Next Steps
Covered employers should review their EPRC reporting and use the updated template when posted for submissions due on or after Jan. 1, 2027. Employers that currently use the "prefers not to identify" category for employee race or sex should review their data-collection practices, and determine how they will collect and report demographic information consistent with the updated guidance. Employers may upload explanatory documentation regarding individual employee circumstances as permitted by IDOL.