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Illinois Enacts Updates to Pay Equity, Wage Standards, and Workplace Safety Laws

29 Aug

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Update Applicable to:Effective Date
All Employers with 100 or more Employees in IllinoisJune 30, 2025


What happened?

On June 30, 2025, Illinois House Bill 2488 was signed into law as Public Act 104-0017, amending several labor laws to clarify employer obligations and update enforcement standards.


Overview:

Summary Highlights from the Amendment:

1. Equal Pay Act of 2003

  • Removes outdated references to a federal reporting form (EEO-1 Component 2).
  • Applies to all private employers in Illinois with 100 or more employees, regardless of federal reporting requirements.
  • Employers must:
    • Submit wage data by gender, race/ethnicity, and job category.
    • Certify compliance with equal pay laws and absence of systemic pay disparities.
    • Pay a $150 filing fee and recertify every two years.
  • The law strengthens confidentiality protections and outlines penalties for misrepresentation.


2. Prevailing Wage Act

  • Updates technical language to reflect current federal apprenticeship standards.
  • Clarifies that “prevailing wage” includes both hourly wages and full fringe benefits for registered training programs.
  • Expands the definition of “public works” to include clean energy, infrastructure, and environmental projects such as EV charging stations, fiber optic installations, and biosolid removal.
  • Redefines “locality” to include adjacent counties when local labor is insufficient, helping ensure project continuity.
  • Adds clarity to terms like “construction” and “labor organization” to align with federal labor law definitions.


Source References

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Illinois PEO services can help you navigate complex employment laws and keep your business compliant.


This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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