Illinois Pay Transparency Law: What Employers Need to Know for 2026

Looking to hire in Illinois? If so, you’ll need to include pay and benefits disclosures in your job postings.

Illinois’ pay transparency law, in effect as of January 1, 2025, is an amendment to the Illinois Equal Pay Act of 2003. It introduced new compliance obligations for employers across the state to close wage gaps, increase pay equity, and ensure job seekers know what to expect before they apply.

Here’s a comprehensive look at what’s now required, how enforcement works, and what employers can do to stay compliant.

Overview of the Illinois pay transparency law

The Illinois pay transparency law requires covered employers to include pay ranges and benefits information in all specific job postings made on or after January 1, 2025.

Employers are not required to post every job opening. But if they do post one, the listing must include:

• The wage, salary, or pay range that the employer reasonably expects to pay for the position; and

• A general description of benefits or other compensation, such as bonuses, stock options, or incentive pay.

Employers can meet this requirement either by including the details directly in the job listing or by providing a link to a publicly accessible webpage with the information.

See also: Pay Transparency Laws in the US – A Definitive Guide

Who does this law apply to?

The new requirements apply to employers with 15 or more employees in Illinois.

They cover any job that is:

• Performed (in whole or part) in Illinois, or

• Performed outside Illinois but reports to a manager, office, or worksite located in Illinois.

That means remote and hybrid positions reporting into Illinois are included.

Employers working with third-party recruiters or job boards must also ensure those postings comply. The employer must provide the required pay and benefits information to the third party—or a hyperlink to it—or risk shared liability for violations.

Use Deel’s job description templates for roles across your organization, from C-suite and finance to creative and sales.

Internal notification and recordkeeping rules

In addition to external job posting requirements, the law adds internal communication and documentation obligations:

• Employee notification: Employers must notify all current employees of job openings or promotional opportunities within 14 calendar days of publishing an external posting.

• Record retention: Employers must keep, for at least five years, records of:

  • Job postings

  • Pay scales and benefits for each position

  • Employee names, addresses, and wages

These records may be reviewed by the Illinois Department of Labor (IDOL) during an investigation or audit. Learn more about running payroll in Illinois.

What employers can’t do

The pay transparency law also reinforces broader pay equity protections under the Illinois Equal Pay Act. Employers may not:

• Ask or require applicants to disclose salary history

• Use wage history to screen or set pay for applicants

• Retaliate against employees or job seekers who exercise their rights under the law

• Require employees to sign agreements that restrict them from discussing or disclosing their compensation

Together, these provisions aim to prevent pay discrimination and promote equitable hiring practices.

See also: Understanding Illinois Employment and Labor Laws

Enforcement and penalties

Complaints and investigations

Employees, applicants, or other affected individuals can file complaints with the Illinois Department of Labor within one year of a violation. IDOL has the authority to inspect records, question employees, and enforce compliance.

Cure periods and fines

If a violation occurs, employers generally have a short window to fix it:

• 14 days to correct a first offense

• 7 days for a second offense

If not cured, penalties apply. Fine amounts vary by employer size:

Repeated violations may eliminate eligibility for cure periods. IDOL may waive or reduce penalties if an employer demonstrates good-faith efforts to comply.

Compliance checklist for Illinois employers

To stay compliant with the Illinois pay transparency law:

• Audit your pay ranges and ensure they’re current, accurate, and consistently applied.

• Standardize job postings to include pay and benefits information, or a link to that information.

• Notify employees of any external job openings within 14 days.

• Train hiring managers and recruiters on salary history prohibitions and posting requirements.

• Maintain documentation for at least five years.

• Coordinate with third-party recruiters to ensure postings meet Illinois standards.

Need help with compliance and HR? Learn how a PEO in Illinois can support your team.

Manage US payroll and compliance seamlessly with Deel

Managing complex state regulations like the Illinois pay transparency law can be challenging, especially for businesses hiring across multiple states.

Deel Payroll helps simplify compliance by centralizing payroll, benefits, and tax management across all 50 US states and beyond. With Deel, you can:

• Automate state-specific compliance updates (including pay transparency laws)

• Run US payroll with full accuracy and visibility

• Store pay and benefits records securely for audits

• Manage multi-state teams and reporting structures effortlessly

Stay compliant, transparent, and confident with Deel—the platform built for modern, distributed teams. Book a free 30-minute platform demo with an expert to learn more.