Illinois Pay Range Disclosure: What Employers Need to Know

Lance C. Ziebell • October 31, 2024


In a significant move towards pay transparency and equity, Illinois is set to join a growing list of states requiring employers to disclose salary ranges in job postings. This new requirement, part of amendments to the Illinois Equal Pay Act, will take effect in January 2025. As businesses prepare for this change, understanding its implications is crucial for both compliance and strategic workforce management.

 

The New Requirement


Starting January 2025, employers in Illinois must include pay scale information in job postings for positions that will be performed in Illinois or remotely from Illinois. This requirement aims to promote pay equity and transparency, allowing job seekers to make more informed decisions about their career moves.

 

Scope and Application


The law applies to all employers with employees in Illinois, regardless of company size. It covers not just traditional job postings but also internal transfer and promotion opportunities. Importantly, the requirement extends to remote positions that could be performed from Illinois, potentially affecting out-of-state employers who hire Illinois residents for remote work.

 

What Needs to Be Disclosed


Employers must provide a "pay scale," which typically includes the salary or hourly wage range that the employer reasonably expects to pay for the position. While the exact format is yet to be specified in regulations, it's likely to include:


  1. Minimum and maximum salary or hourly wage
  2. Description of other compensation, such as bonuses, commissions, or equity grants
  3. Overview of benefits offered

 

Challenges and Considerations


Implementing this new requirement presents several challenges for employers:

 

  1. Determining Appropriate Ranges: Employers must carefully consider how to set pay ranges that are both competitive and realistic. Too broad a range may not be informative, while too narrow a range may limit flexibility.
  2. Internal Equity Issues: Published salary ranges may raise questions among current employees about their own compensation, potentially leading to morale issues or increased turnover.
  3. Compliance Across Multiple Jurisdictions: Companies operating in multiple states may need to navigate differing pay transparency laws, adding complexity to their hiring processes.
  4. Updating Job Posting Practices: HR departments and hiring managers will need to revise their job posting procedures to ensure compliance.
  5. Preparing for Increased Scrutiny: With salary information publicly available, companies may face more questions about their pay practices from employees, candidates, and potentially regulators.

 

Benefits of Pay Transparency

 

Despite these challenges, pay range disclosure can offer significant benefits:

 

  1. Attracting Qualified Candidates: Clear salary information can help attract candidates whose expectations align with the offered range, potentially streamlining the hiring process.
  2. Promoting Pay Equity: Transparency can help identify and address pay disparities, supporting broader efforts towards pay equity.
  3. Improving Negotiation Processes: With salary ranges known upfront, negotiations can focus more on a candidate's qualifications and fit rather than starting salary.
  4. Enhancing Company Reputation: Embracing transparency can position a company as fair and progressive, potentially improving its employer brand.

 

Preparing for Compliance

 

To prepare for this new requirement, employers should:

  1. Review and update compensation structures
  2. Train hiring managers and HR personnel on the new requirements
  3. Develop a communication strategy for current employees
  4. Update job posting templates and processes
  5. Consider conducting a pay equity audit to address any existing disparities

 

Looking Ahead

 

As Illinois joins states like Colorado, Washington, and California in mandating pay range disclosures, it's clear that pay transparency is becoming a national trend. Employers who proactively embrace these changes may find themselves better positioned to attract top talent and foster a culture of fairness and openness.

 

While the specific regulations are still forthcoming, Illinois employers should start preparing now for this significant change in hiring practices. By thoughtfully implementing pay range disclosures, companies can turn this compliance requirement into an opportunity to enhance their hiring processes and reinforce their commitment to pay equity.

 

If you have questions regarding this new law, contact Lance Ziebell at 847-705-7555 or lziebell@lavellelaw.com.

More News & Resources

Lavelle Law News and Events

Join us on 11.8.26 and learn to spot the red flags of fiduciary breach and know your rights.
By Lavelle Law • October 19, 2026
Lavelle Law Attorneys Kaiser and Kokoszka share stories from trust administration disputes, plus red flags of a fiduciary breach and how to protect yourself. Register today for "Tales from the Trenches on Trust Administration"
Banking and Business – October 2026
By Steven A. Migala • October 14, 2026
Federal Banking Regulators Clarify What Financial Institutions Can Tell Customers About Fraud Investigations and Account Closures
Tax Scams to Watch for Related to the One, Big, Beautiful Bill
By Timothy M. Hughes • October 10, 2026
Taxpayers should watch for the following OBBB-related scams and take steps to protect their personal and financial information.
Options and Tips for Selling Your Business - a Lavelle Law Minute video.
By Kerry M. Lavelle • September 29, 2026
Thinking of selling your business ahead of retirement? Business owners should begin preparing when they enter the “red zone” before retirement - not wait until they’re ready to retire. Kerry Lavelle explains this and more in the Lavelle Law Minute video, "Options and Tips for Selling Your Business."
Court Denies Petition to Remove Executor - Major Probate Litigation Defense Victory
By Probate Litigation • September 23, 2026
Court Denies Petition to Remove Executor - Major Probate Litigation Defense Victory - A Lavelle Law Success Story.
IRS Launches Digitally Authenticated Tax Compliance Report
By Timothy M. Hughes • September 10, 2026
On August 20, 2026, the Internal Revenue Service announced a digitally authenticated Tax Compliance Report available through IRS Individual Online Accounts. Taxpayers can securely obtain and download the report when applying for a job, a loan, a government benefit, or another service that requires tax compliance info.
BOI reports with FinCEN no longer required for condo, HOAs, other associations, board members.
By Robyn K. Kish • August 17, 2026
FinCEN update: Condo, HOAs, and other common interest community associations no longer have to file BOI reports with FinCEN. Volunteer board members are no longer required to report their personal information to the federal government simply because they sit on an association’s board of directors.
Tax-Smart Year-End Planning: Key 2026 Tax Changes & Strategies for Success
By Lavelle Law • August 11, 2026
Discover the latest tax law updates and planning opportunities that can help you reduce taxes, protect wealth, and prepare for the future.
IRS Announces Guidance on the Expansion of Paid Family and Medical Leave
By Timothy M. Hughes • August 10, 2026
On August 5, 2026, the Internal Revenue Service issued Notice 2026-28 providing guidance on the employer credit for paid family and medical leave (“PFML”) under the Working Families Tax Cuts (“WFTC”). The WFTC makes permanent and expands eligibility and coverage for employers offering PFML benefits to employees.
Federal Rule 68 Offers of Judgment: An Underutilized Tool for Defense Counsel
By Sarah J. Reusché • August 7, 2026
Many litigators are familiar with Federal Rule of Civil Procedure 68, but few fully appreciate its strategic value in the defense arsenal. Rule 68 can be a powerful tool for influencing settlement negotiations, and in some cases, limiting a plaintiff’s ability to recover post-offer attorneys’ fees.
More Posts