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What is the Illinois Fair Pay Act?

Published in Illinois Labor Law 3 mins read

The Illinois Fair Pay Act, primarily embodied by the Illinois Equal Pay Act of 2003, is a state law designed to combat wage discrimination by prohibiting employers from paying unequal wages based on gender for jobs that require substantially similar skill, effort, and responsibility, and are performed under similar working conditions. This legislation aims to close the gender pay gap and ensure equitable compensation for all workers in Illinois.

Core Provisions of the Illinois Equal Pay Act

At its heart, the Act establishes a fundamental principle: men and women performing the same or substantially similar work must receive equal pay. However, the law does recognize specific, non-discriminatory reasons that can justify wage differences.

What the Act Prohibits

The Illinois Equal Pay Act explicitly prohibits employers from:

  • Paying unequal wages based on gender: This applies to any form of compensation, including salaries, hourly wages, bonuses, commissions, and other benefits.
  • Discrimination in hiring or promotion: It extends beyond just pay to ensure fair treatment in employment opportunities related to compensation.

The key phrase "same or substantially similar work" does not mean identical jobs. Courts consider whether the jobs require comparable skill, effort, and responsibility, and are performed under similar working conditions, even if job titles or descriptions differ. For example, a "Marketing Specialist" and a "Communications Coordinator" might be considered to be performing substantially similar work if their daily tasks, required expertise, and impact on the company are comparable.

Permissible Wage Differences

While the Act strictly forbids gender-based wage discrimination, it acknowledges that legitimate, non-discriminatory factors can lead to differences in pay. These exceptions include:

Justifiable Reasons for Wage Differences Under the Illinois Equal Pay Act
A seniority system
A merit system
A system measuring earnings by quantity or quality of production
Factors other than gender

The "factors other than gender" clause is broad but must be applied in good faith and without discriminatory intent. Examples could include differences in:

  • Education or Training: A higher degree or specialized certification directly relevant to the job.
  • Experience: More years of experience directly applicable to the role.
  • Geographic Location: Wage differences based on cost of living or market rates in different areas if the company operates in multiple locations.
  • Shift Differentials: Different pay for night shifts versus day shifts.
  • Negotiation Skills: While often debated, an employee's ability to negotiate a higher salary might be considered a factor, provided the initial offer was non-discriminatory.

It's crucial that any such "factors other than gender" are legitimate, job-related, and consistently applied to all employees, regardless of gender.

Employer Responsibilities and Best Practices

To comply with the Illinois Fair Pay Act and foster a fair workplace, employers should consider the following:

  • Regular Pay Audits: Conduct internal audits to identify and address any unexplained pay disparities.
  • Clear Compensation Structures: Establish transparent and objective criteria for setting wages, including salary ranges for positions.
  • Job Evaluations: Systematically evaluate jobs to determine comparable skill, effort, and responsibility levels.
  • Training for Managers: Educate hiring managers and supervisors on anti-discrimination laws and fair pay practices.
  • Avoid Salary History Inquiries: Illinois law generally prohibits employers from inquiring about an applicant's salary history, helping to break cycles of past pay discrimination.

By adhering to these principles, employers not only comply with the law but also build a more equitable and motivated workforce.

For more detailed information on the legislation, you can refer to the official Illinois Department of Labor Equal Pay Act page.