On July 31, 2019, Governor Pritzker signed a law prohibiting Illinois employers from asking job applicants or their previous employers about their salary history. The law amends the Illinois Equal Pay Act of 2003. The Illinois EPA makes it illegal for an employer to discriminate in pay on the basis of sex or race. The purpose of the law is to close the gender gap between wages paid to women versus men. Women in Illinois earn 79% of what men earn according to an Illinois government news release. The law goes into effect on September 29, 2019. 

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THE EFFECT OF SALARY HISTORY QUESTIONS 

Crain’s Chicago Business reported that questions about salary history are extremely common. Crain’s also reported that salary history questions are a major contributing factor in both racial and gender wage gaps. According to Crain’s, Black women working in the U.S. make just 61 cents to a white man’s dollar. Native American women make 58 cents. Latinas make 53 cents. Requests to know past wages allow pay inequity to continue. This impacts future wages and earning potential. A person’s skills, experience and the requirements of the job must govern pay.* 

WHAT EMPLOYERS CAN DISCUSS 

Employers are still allowed to provide information about the wages, benefits, compensation, or salary offered with respect to the position. They can also discuss with an applicant their expectations with respect to wage or salary, benefits and other compensation. Applicants are free to voluntarily disclose their current or prior wage or salary history. However, an employer cannot consider that information when making employment or compensation decisions. 

EMPLOYEES MAY DISCUSS BENEFITS WITH OTHER EMPLOYEES 

Under the new amendments, Illinois employers can no longer require employees to sign a contract or waiver prohibiting them from discussing their compensation with other employees. Employees can freely discuss compensation and benefits with other employees. 

CIVIL REMEDIES FOR VIOLATIONS OF THE LAW 

Violations of these new amendments allow an employee to bring a civil action within five years and seek to recover any damages incurred. Employees an also seek” “special damages” up to $10,000, injunctive relief, costs and attorney’s fees. Employers who violate the law are also subject to civil penalties up to $5,000 for each violation. 

New York, Massachusetts, California, Washington, Alabama, San Francisco, and Philadelphia have enacted similar laws. 

*Crain’s Chicago Business – July 31, 2019