SB3100 100TH GENERAL ASSEMBLY

LRB100 20542 JLS 35934 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3100

Introduced 2/15/2018, by Sen. Jennifer Bertino-Tarrant

SYNOPSIS AS INTRODUCED:

820 ILCS 112/10
820 ILCS 112/13 new

Amends the Equal Pay Act of 2003. Prohibits an employer from requiring an employee to sign a nondisclosure agreement regarding the employee's salary, from seeking the salary history of a prospective employee, and from requiring that a prospective employee's salary history meet any specified criteria. Provides for employers to establish a self-evaluation plan of the employer's pay practices. Sets forth permissible components of a self-evaluation plan. Requires the self-evaluation plan to be submitted to the Department of Labor for verification. Provides that an employer that has completed a self-evaluation plan that has been verified by the Department of Labor has an affirmative defense to liability for certain alleged violations of the Act. Provides that an employer that does not have a verified self-evaluation plan may be subject to civil penalties for violations of the Act.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Equal Pay Act of 2003 is amended by changing Section 10 and by adding Section 13 as follows:

(820 ILCS 112/10)

Sec. 10. Prohibited acts.

(a) No employer may discriminate between employees on the basis of sex by paying wages to an employee at a rate less than the rate at which the employer pays wages to another employee of the opposite sex for the same or substantially similar work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where the payment is made under:

(1) a seniority system;

(2) a merit system;

(3) a system that measures earnings by quantity or quality of production; or

(4) a differential based on any other factor other than: (i) sex or (ii) a factor that would constitute unlawful discrimination under the Illinois Human Rights Act.

An employer who is paying wages in violation of this Act may not, to comply with this Act, reduce the wages of any other employee.

Nothing in this Act may be construed to require an employer to pay, to any employee at a workplace in a particular county, wages that are equal to the wages paid by that employer at a workplace in another county to employees in jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions.

(b) It is unlawful for any employer to interfere with, restrain, or deny the exercise of or the attempt to exercise any right provided under this Act. It is unlawful for any employer to discharge or in any other manner discriminate against any individual for inquiring about, disclosing, comparing, or otherwise discussing the employee's wages or the wages of any other employee, or aiding or encouraging any person to exercise his or her rights under this Act. It is unlawful for an employer to require an employee to sign a contract or waiver that prohibits the employee from disclosing or discussing the employee's wage, salary, or other compensation. An employer may, however, prohibit a human resources employee, a supervisor, or any other employee whose job responsibilities require or allow access to other employees' wage or salary information from disclosing that information without prior written consent from the employee whose information is sought or requested.

(b-5) It is unlawful for an employer to seek the wage or salary history of a prospective employee from the prospective employee or a current or former employer or to require that a prospective employee's wage or salary history meet certain criteria. This subsection does not apply if:

(1) the prospective employee's wage or salary history is a matter of public record;

(2) the prospective employee is a current employee of the employer and is applying for a position with the same employer; or

(3) a prospective employee has voluntarily disclosed the information.

(c) It is unlawful for any person to discharge or in any other manner discriminate against any individual because the individual:

(1) has filed any charge or has instituted or caused to be instituted any proceeding under or related to this Act;

(2) has given, or is about to give, any information in connection with any inquiry or proceeding relating to any right provided under this Act; or

(3) has testified, or is about to testify, in any inquiry or proceeding relating to any right provided under this Act; or .

(4) fails to comply with any wage or salary history inquiry.

(Source: P.A. 93-6, eff. 1-1-04.)

(820 ILCS 112/13 new)

Sec. 13. Self-evaluation plan.

(a) An employer against whom an action is brought alleging a violation of Section 10 of this Act and who, within the previous 3 years and prior to the commencement of the action, has completed a self-evaluation plan of its pay practices that has been verified by the Department pursuant to subsection (b) of this Section and can demonstrate that progress has been made towards eliminating wage differentials based upon gender for the same or substantially similar work on jobs the performance of which requires equal skill, effort, and responsibility and which are performed under similar working conditions, in accordance with that evaluation, has an affirmative defense to liability for violations under Section 10 of this Act. An employer's self-evaluation may be of the employer's own design provided that it is, in light of the size of the employer, reasonable in detail and scope.

A self-evaluation plan may include, but is not limited to, the following components:

(1) an evaluation of the employer's compensation system for internal equity;

(2) an evaluation of the employer's compensation system for industry competitiveness;

(3) an examination of the employers' compensation system and comparison of job grades or scores;

(4) a review of data for personnel entering the employer;

(5) an assessment of how raises are awarded;

(6) an evaluation of employee training, development, and promotion opportunities; and

(7) a written policy that prohibits the employer from seeking the wage or salary history of a prospective employee and prohibits the employer from requiring an employee to sign a contract or waiver that would prohibit the employee from disclosing or discussing the employer's wage, salary, or other compensation.

(b) An employer shall submit the self-evaluation plan to the Department for verification that a self-evaluation plan has been completed. The self-evaluation plan shall be submitted to the Department on standard templates or forms issued by the Department.

(c) If an employer has completed a self-evaluation plan in another state within the previous 3 years that demonstrates that progress has been made towards eliminating wage differentials based on gender, then the business's evaluation plan shall be verified by the Department upon the employer providing proof the self-evaluation plan is completed and approved, verified, or otherwise accepted in that state.

(d) The Department shall verify an employer's self-evaluation plan established under subsection (a) within 30 days after the employer's submission of the self-evaluation plan.

(e) An employer who has completed a self-evaluation plan within the previous 3 years and prior to the commencement of the action can demonstrate that progress has been towards eliminating wage differentials based on gender for the same or substantially similar work on jobs the performance of which requires equal skill, effort, and responsibility and which are performed under similar working conditions, but cannot demonstrate that the self-evaluation plan was reasonable in detail and scope or verified by the Department is not be entitled to the affirmative defense established under this Section and is liable for any civil fine for a violation of this Act as follows:

(1) up to $500 per employee affected, if the employer has fewer than 4 employees; or

(2) up to $2,500 per employee affected, if the employer has 4 or more employees.

(f) Evidence of a self-evaluation plan or remedial steps undertaken in accordance with this Section is not admissible in any proceeding as evidence of a violation of this Act.

(g) An employer who has not completed a self-evaluation plan shall not be subject to any negative or adverse inference as a result of not having completed a self-evaluation plan.

(h) An employer who uses the affirmative defense under this Section is not precluded from using any other affirmative defense under this Act.