Illinois Finalizes Employee Pay Reporting Regulations

January 30, 2023

What's New

The Illinois Department of Labor (IDOL) has issued final regulations implementing the state’s new pay reporting requirements. The regulations implement the 2021 amendments to the Illinois Equal Pay Act (ILEPA), which require covered employers to submit employee-level compensation data to the state in conjunction with their application for a mandatory equal pay registration certification (EPRC). IDOL also issued new FAQs.

What It Means

Employers must obtain an EPRC from IDOL if they have 100 employees in Illinois and are required to file an annual EEO-1 Report with the EEOC.

The final regulations, issued earlier this month, explain that covered employers must register with IDOL so it can contact them with a deadline for their EPRC applications. Employers’ pay reports must include data for all employees who work at a physical location in Illinois, all employees working outside Illinois if someone in Illinois directs or controls their work, and all resident employees working remotely from Illinois even if someone outside Illinois directs or controls their work.

The updated FAQs explain two changes to the filing process:

• Beginning in 2023, employers must provide in their employee pay data reports the hours worked by each employee during the payroll year; and
• Employers no longer have to submit EEO-1s with their EPRC application unless IDOL specifically requests them.

What You Should Do

Employers that have 100 or more Illinois employees should register with IDOL if they have not yet done so.

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