Illinois Employers: New Pay Transparency Requirements in Job Postings

Starting January 1, 2025, Illinois employers were required to include pay scale and benefit information in all job postings, ensuring greater transparency in the hiring process. This significant change, part of an amendment to the Illinois Equal Pay Act of 2003, aims to address wage disparities and provide job seekers with clear and accessible compensation information. 

In the U.S., about one in three employees will be covered by pay transparency laws by 2025, reflecting the growing push for more transparency and fairness in the job market. These new requirements will help create a more equitable job market, ensuring that compensation details are accessible to all.

As Illinois joins the growing trend of pay transparency legislation, employers will need to adapt their job posting practices to comply with these new requirements. This blog breaks down the key requirements, compliance steps, and challenges employers may encounter, helping businesses effectively tackle this change.
 

What is the New Illinois Pay Transparency Law?
 

Illinois has joined a growing number of states requiring pay transparency in job postings, aiming to promote fair pay practices and reduce wage disparities. This new law, an amendment to the Illinois Equal Pay Act, officially took effect on January 1, 2025, and applies to employers across the state.

The law mandates that businesses include salary ranges and a general benefits description in all job postings. This ensures that job seekers have clear compensation expectations before applying, eliminating pay secrecy that often contributes to wage gaps.

Employers must now update job postings and review internal pay structures to comply with the new law. But which businesses are affected, and what are the specific compliance requirements? Let’s take a closer look.

Suggested Read: Discover the meaning of pay transparency and how to put it into practice effectively in this guide. You can also explore 2025's state-specific pay transparency laws here.
 

Who Must Comply with the New Law?
 

As of January 1, 2025, businesses must disclose salary ranges and benefits in job postings. The goal is to promote pay equity, reduce wage gaps, and ensure job seekers have clear compensation expectations before applying.

This shift aligns with a growing trend of pay transparency laws across the U.S., which emphasize fairness and accountability in hiring practices. For employers, keeping compensation details internal is no longer an option since candidates now expect upfront disclosure.

But who exactly must comply with this new law, and what information needs to be included?

Under the new pay transparency requirements:

• Employers with 15 or more employees must include salary ranges and a general benefits description in all job postings.
   
• Remote positions are covered if the job could be performed, at least in part, in Illinois. Even if an employer is based outside the state, they must comply if they are hiring for a role that can be carried out within Illinois.

Smaller businesses with fewer than 15 employees are not required to disclose salary details, but voluntarily doing so can enhance trust with candidates and provide a competitive advantage in recruitment.

Suggested Read: Conducting a pay equity analysis is essential for identifying and addressing wage disparities. Learn the key steps and how to calculate the gender pay gap.

Understanding to whom this law applies is only the first step. Next, we will explore what employers must specifically include in job postings to remain compliant.
 

Key Disclosure in Job Postings
 

Illinois employers must now ensure that job postings include clear and accurate compensation details. This requirement is designed to eliminate pay disparities and provide job seekers with upfront information about potential earnings and benefits. 

By setting clear expectations from the start, businesses can attract better-qualified candidates while maintaining compliance with the law.

Under the new regulations, every job posting from a covered employer must include:

• Wage Range: The listed compensation must reflect a genuine minimum and maximum amount that the employer expects to pay for the role. Employers cannot leave this open-ended or vague.
   
• General Benefits: Postings must outline key benefits, such as health insurance, retirement plans, bonuses, paid time off, and any additional compensation perks. While employers do not need to provide full policy details, they must offer a reasonable summary of what is included.

Failing to provide this information can mislead job seekers, result in compliance violations, and expose employers to penalties. Transparency in job postings also builds trust with applicants, strengthens employer branding, and improves hiring efficiency.

Having discussed the necessary inclusions, let’s examine the consequences for companies that do not adhere to these new transparency guidelines.
 

Consequences of Failure to Comply
 

Illinois employers who do not follow the new pay transparency requirements risk more than just a compliance violation. They face financial penalties, potential legal action, and reputational damage. The Illinois Department of Labor (IDOL) is responsible for enforcing these regulations and has the authority to investigate and penalize businesses that fail to meet the disclosure standards.

Employers that do not include salary ranges and benefits in job postings may face:

• Fines and Penalties: IDOL can impose monetary fines on businesses that fail to meet transparency requirements. The exact penalty amount depends on the severity and frequency of the violations.
   
• Investigations and Legal Action: Job seekers or employees can file complaints with IDOL if they believe an employer has not complied with the law. This could trigger investigations and further legal consequences.
   
• Public Scrutiny and Reputation Damage: Non-compliance may result in negative publicity, which can impact an employer’s ability to attract and retain top talent. In an era where candidates value transparency, failing to disclose pay information could make a company less competitive.

Beyond these direct consequences, non-compliant employers may struggle with internal challenges as well. Employees may begin questioning internal pay structures, leading to dissatisfaction and retention issues. Businesses must take proactive steps to ensure compliance to avoid these risks. 

But beyond avoiding fines, why is pay transparency such a critical issue in today’s hiring landscape? Let’s explore the broader impact of salary disclosure on businesses and job seekers.

Suggested Read: Achieving workplace equity starts with fair pay. This comprehensive guide for HR professionals explores key strategies for achieving transparency and balance.
 

Need for Pay Transparency
 

Illinois’ pay transparency law aims to encourage a more equitable job market rather than merely ensuring compliance. Candidates now expect to see salary information upfront, allowing them to make informed career decisions. Employers that promote transparency gain a competitive edge in attracting top talent.

Here’s why this shift is so important:

• Reduces Pay Disparities: Transparent salaries help address wage gaps related to gender, race, and other factors.
   
• Improves Employer Reputation: Companies that openly share pay details are seen as trustworthy and fair.
   
• Enhances Hiring Efficiency: Candidates no longer apply blindly. They know whether the compensation aligns with their expectations.
   
• Minimizes Conflicts: Pay transparency reduces back-and-forth negotiations by setting clear expectations from the beginning.
   
• Fair Market Pay: When salaries are publicly listed, companies are pressured to offer competitive wages in line with industry standards. This is also called market pricing.
   
• Promotes Workplace Equity: Employees gain a better understanding of how their compensation compares to others in similar roles, reducing the likelihood of unfair pay practices.

Simply including salary information in job postings is insufficient. To prevent possible conflicts, companies need to examine their compensation frameworks, educate their HR personnel, and maintain uniformity in pay practices. 

So, what exactly should employers be doing to stay compliant? We will break it down in the next section. 
 

Steps for Employers to Stay Compliant
 

With Illinois’ pay transparency law now in effect, employers must take proactive steps to ensure compliance. Failing to meet these requirements can result in fines, legal action, and reputational damage. More importantly, a well-structured approach to pay transparency can enhance trust, attract top talent, and promote fair pay practices. 

Here’s what employers should do to stay compliant:

1. Review and Update Job Postings

All job postings, both internal and external, must include a salary or wage range and a general description of benefits. 

Employers should:

• Standardize salary ranges based on company pay structures.
• Ensure benefits descriptions are accurate and up-to-date.
• Include pay details for remote roles that could be performed in Illinois.

2. Conduct Internal Pay Audits

Before making salary ranges public, businesses should assess their current pay structures. This helps prevent internal disputes and ensures wages are fair and consistent. 

Steps to take:

• Compare salaries across similar roles to identify disparities.
• Adjust compensation where necessary to maintain pay equity.
• Document how pay is determined (experience, skills, location, etc.).

3. Train HR and Hiring Managers

HR professionals and hiring managers are at the front lines of pay transparency compliance, making proper training essential.

Training should cover:

• How to determine and communicate salary ranges.
• What benefits must be disclosed in job postings?
• How to handle employee questions about pay transparency.

4. Work with Experts

Since pay transparency laws can be complex, consulting legal or HR compliance professionals can help businesses avoid legal risks. 

Employers should:

• Review job postings and compensation policies for compliance.
• Stay informed about potential updates to state and federal laws.
• Address any legal concerns regarding salary disclosures.

5. Adopt Compensation Management Tools

Manually tracking salary disclosures can be challenging. A compensation management platform can help by:

• Providing real-time salary benchmarking to set accurate pay ranges.
• Automating job posting compliance with built-in salary fields.
• Helping businesses communicate total compensation effectively.

By taking early action, employers can ensure compliance, build a reputation for fairness, and maintain a competitive edge in hiring. 

However, this shift presents challenges for many businesses, especially those unprepared for increased scrutiny of their pay structures. 
 

For further insights into achieving pay equity, check out the latest episode of The Pay Equity Equation podcast, featuring Nick Howell. This episode provides valuable knowledge to help you deal with the complexities of compensation and equity in the current market.

Now, let’s look at some of the biggest obstacles and how employers can address them.
 

Challenges of Pay Transparency
 

Businesses that are not prepared for increased scrutiny of their compensation practices may face internal pay disputes, hiring difficulties, or even unintended financial strain. However, the right strategies can effectively address these challenges. 

Here are some common obstacles and solutions:

1. Addressing Internal Pay Discrepancies

The Challenge: Once salary ranges become public, employees may compare their compensation with new hires and raise concerns about potential pay gaps. Companies that have long relied on negotiation-based pay may struggle to explain inconsistencies.

How to Overcome It:

• Conduct a pay equity audit before publicly posting salary ranges.
   
• Identify inconsistencies in employee compensation and adjust salaries where necessary.
   
• Establish a clear compensation structure based on role, experience, and performance to ensure fairness.

Suggested Read: Understand performance appraisals in-depth with this comprehensive guide for HR professionals. 

2. Striking the Right Balance 

The Challenge: Employers may be tempted to post overly broad salary ranges to allow flexibility in hiring. However, extremely wide ranges may seem disingenuous to candidates, while too narrow ranges may limit the employer’s ability to negotiate.

How to Overcome It:

• Use market data and internal compensation policies to define salary bands that reflect realistic pay expectations.
   
• Ensure that posted salary ranges align with actual employee compensation for similar roles.
   
• Be transparent about what factors (e.g., experience, location, skills) influence where a candidate may fall within the range.

3. Managing Employee Reactions

The Challenge: Employees who see public salary postings may start questioning their compensation. This can lead to internal conflicts and increased demands for raises, especially if new hires are offered salaries close to or above existing employees’ pay.

How to Overcome It:

• Communicate pay structures and rationale clearly to employees before making salary information public.
   
• Offer salary reviews for existing employees to address concerns and ensure internal equity.
   
• Provide professional development opportunities to help employees grow into higher pay brackets over time.

4. Maintaining Competitive Compensation
 

The Challenge: Public salary ranges compel companies to be more competitive, but some employers might find it difficult to meet industry benchmarks. If a company’s salaries fall below those of its competitors, it may discourage high-quality talent applicants.

How to Overcome It:

• Regularly benchmark salaries against industry data to ensure competitiveness.
   
• Consider offering non-monetary benefits (e.g., flexible work arrangements and career development programs) to enhance job appeal.
   
• Be transparent about total compensation, including bonuses, equity, and perks, rather than focusing solely on base salary.

For many businesses, manually managing these changes can be overwhelming, leading to compliance risks and inefficiencies. This is where compensation management technology becomes essential.

A reliable platform can help employers set accurate salary ranges, conduct pay audits, and maintain transparency without disrupting hiring workflows. CompUp, a leading compensation management solution, is designed to simplify this process and ensure compliance with the new pay transparency laws.
 

How Can CompUp Help With Pay Transparency Compliance?
 

With Illinois' new pay transparency law in effect, businesses must update their hiring practices to stay compliant. This means reviewing job postings, adjusting salary structures, and ensuring clear communication about compensation. 

As a full-stack compensation management platform, CompUp helps businesses easily benchmark, plan, and communicate salaries and benefits. Employers can ensure compliance while maintaining competitive pay structures by employing real-time compensation data and analytics.
 

• Compensation Bands: With CompUp’s compensation bands, you can clearly define salary ranges for each role, ensuring that all job postings include the appropriate pay scale. This tool helps you standardize compensation across the organization and promotes transparency in how pay ranges are determined.

• Compensation Management: CompUp’s compensation management service enables businesses to oversee annual salary increments, promotions, and adjustments across the company. By consolidating all compensation data into a unified platform, CompUp ensures that pay decisions are consistent, equitable, and compliant with the new pay transparency laws.

• Pay Equity Analysis: CompUp’s pay equity tools allow you to analyze compensation across different roles, demographics, and locations to ensure that pay disparities are identified and addressed. This helps maintain fair pay practices and ensures that your pay structures are compliant with pay transparency laws.

• Budget Simulation: The budget simulation feature helps you forecast and adjust compensation budgets to ensure that they align with your company’s financial goals and compliance requirements. This ensures that the pay scales you post remain sustainable and compliant.

• Manager Execution: Provide your managers with real-time compensation data to ensure that any internal or external promotions align with your compensation strategy. This feature helps ensure that pay decisions are consistent and transparent, making it easier to comply with the law.

• Compensation Benchmarking: With real-time benchmarking, CompUp helps you compare your pay scales against industry standards, ensuring that your salary ranges are competitive and compliant with pay transparency laws. This feature allows you to adjust your compensation to stay ahead of the market.

• Hireshot (New Hire Compensation): For employers hiring new talent, CompUp’s Hireshot service helps set competitive, equitable pay for new hires while aligning with pay transparency requirements. It offers a digital offer experience that presents candidates with clear, transparent compensation packages and benefits.

• Rewards Statement: CompUp’s rewards statement feature allows employees to easily access a complete breakdown of their compensation package, including base salary, bonuses, and benefits. This level of transparency supports compliance with pay transparency requirements and helps promote trust within the organization.

• Internal Promotion Notifications: To comply with the pay transparency law, employers must notify current employees about internal promotion opportunities. CompUp’s platform allows businesses to easily manage and track internal job postings, ensuring that all employees are informed and given equal access to advancement opportunities.

   

With regulations tightening across multiple states, companies can no longer afford inconsistent or outdated compensation practices. Employers that fail to adapt may face penalties, hiring struggles, and workforce dissatisfaction. By using a data-driven compensation platform like CompUp, businesses can stay compliant, attract top talent, and ensure fair pay practices.
 

Conclusion
 

Illinois’ new pay transparency requirements mark a major shift in hiring practices. Employers must now include salary ranges and benefits in job postings to remain in compliance with the Equal Pay Act. While these changes bring challenges, they also present opportunities. 

CompUp provides a powerful suite of tools to help businesses navigate the complexities of the new pay transparency requirements. With services like Compensation Bands, Compensation Management, Pay Equity Analysis, Hireshot, and Rewards Statements, CompUp makes it easier to manage compensation data, maintain fairness, and stay compliant. T

These services help businesses standardize pay ranges, ensure equity in pay practices, and create transparent, competitive compensation structures. To make sure your business stays compliant and promotes a transparent work environment, start using CompUp today. Schedule a free demo today for a smarter way to manage pay transparency. 
 

Frequently Asked Questions
 

Does the law apply to internal job postings for promotions or transfers?

Yes. If an employer is posting a job internally for promotion or transfer opportunities, the same pay transparency requirements apply. Salary ranges and a general benefits description must be included to ensure fairness in internal hiring.
 

Can employers list “negotiable” instead of providing a salary range?

No. The law requires specific salary or wage ranges, meaning employers cannot use vague terms like “negotiable” or “competitive pay.” However, employers can provide a range that allows for some flexibility as long as it is realistic and based on actual pay data.
 

How will the Illinois Department of Labor (IDOL) enforce compliance?

The IDOL will investigate complaints filed by job seekers, employees, or other concerned parties. If a violation is found, the employer may face fines, corrective actions, and public scrutiny. Employers should proactively ensure compliance to avoid potential legal issues.
 

What happens if an employer provides a salary range but hires someone at a different rate?

Employers must ensure the posted salary range reflects a genuine pay expectation. While they can still negotiate within the listed range, hiring someone outside of that range could lead to legal challenges unless a valid reason is documented (e.g., additional qualifications or experience).
 

Does this law apply to contract positions or freelance roles?

The law primarily applies to traditional employment roles, but employers hiring contractors or freelancers should still provide clear pay expectations. If a role involves long-term, consistent work, it is advisable to include salary or hourly pay details to align with transparency expectations.
 

Do bonuses and commissions need to be included in job postings?

Yes, but only in a general description. Employers do not need to disclose exact bonus amounts, but they must specify if the role includes bonus eligibility, commission structures, or incentive-based pay.
 

What if an employer posts a job without salary information by mistake?

If an employer realizes a posting is non-compliant, they should correct it immediately. While first-time violations may be addressed with a warning or corrective action, repeated non-compliance could lead to fines and investigations.
 

Can job applicants report non-compliant job postings?

Yes. Job seekers can file complaints with the Illinois Department of Labor if they find a job posting that does not include the required salary and benefits information. Employers should expect increased scrutiny from candidates and industry watchdogs.
 

Will this law apply to salary adjustments for current employees?

Although the law does not require employers to disclose pay adjustments for current employees, internal transparency is strongly encouraged. Conducting pay equity reviews before publicizing salary ranges can help prevent workplace disputes.
 

How should multi-state employers handle Illinois job postings?

If a company operates in multiple states and is hiring for a role that could be performed in Illinois, it must comply with Illinois law. Multi-state employers should consider adopting uniform pay transparency practices across all locations to ensure consistency.