Illinois 2023-2024 Regular Session

Illinois House Bill HB1166 Latest Draft

Bill / Engrossed Version Filed 03/17/2023

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1  AN ACT concerning finance.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Illinois Procurement Code is amended by
5  adding Section 50-83 as follows:
6  (30 ILCS 500/50-83 new)
7  Sec. 50-83. Equal pay registration certificate. For
8  procurements first solicited on or after January 1, 2025, a
9  person who is required to obtain an equal pay registration
10  certificate under Section 11 of the Equal Pay Act of 2003 may
11  qualify as a bidder, offeror, or contractor under this Code if
12  the person was issued an equal pay registration certificate
13  from the Department of Labor during the previous 2 calendar
14  years. For any bid or offer for a contract with a State agency
15  by a person required to obtain an equal pay registration
16  certificate under Section 11 of the Equal Pay Act of 2003, the
17  chief procurement officer shall require the person to certify
18  that the person holds an equal pay registration certificate
19  issued during the 2 calendar years before the award.
20  Section 10. The Equal Pay Act of 2003 is amended by
21  changing Section 11 as follows:

 

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1  (820 ILCS 112/11)
2  Sec. 11. Equal pay registration certificate requirements;
3  application. For the purposes of this Section 11 only,
4  "business" means any private employer who has 100 or more
5  employees in the State of Illinois and is required to file an
6  Annual Employer Information Report EEO-1 with the Equal
7  Employment Opportunity Commission, but does not include the
8  State of Illinois or any political subdivision, municipal
9  corporation, or other governmental unit or agency.
10  (a) A business must obtain an equal pay registration
11  certificate from the Department.
12  (b) Any business subject to the requirements of this
13  Section that is authorized to transact business in this State
14  on March 23, 2021 shall submit an application to obtain an
15  equal pay registration certificate, between March 24, 2022 and
16  March 23, 2024, and must recertify every 2 years thereafter.
17  Any business subject to the requirements of this Section that
18  is authorized to transact business in this State after March
19  23, 2021 must submit an application to obtain an equal pay
20  registration certificate within 3 years of commencing business
21  operations, but not before January 1, 2024, and must recertify
22  every 2 years thereafter. The Department shall collect contact
23  information from each business subject to this Section. The
24  Department shall assign each business a date by which it must
25  submit an application to obtain an equal pay registration
26  certificate. The business shall recertify every 2 years at a

 

 

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1  date to be determined by the Department. When a business
2  receives a notice from the Department to recertify for its
3  equal pay registration certificate, if the business has fewer
4  than 100 employees, the business must certify in writing to
5  the Department that it is exempt from this Section. Any new
6  business that is subject to this Section and authorized to
7  conduct business in this State, after the effective date of
8  this amendatory Act of the 102nd General Assembly, shall
9  submit its contact information to the Department by January 1
10  of the following year and shall be assigned a date by which it
11  must submit an application to obtain an equal pay registration
12  certificate. The Department's failure to assign a business a
13  registration date does not exempt the business from compliance
14  with this Section. The failure of the Department to notify a
15  business of its recertification deadline may be a mitigating
16  factor when making a determination of a violation of this
17  Section.
18  (c) Application.
19  (1) A business shall apply for an equal pay
20  registration certificate by paying a $150 filing fee and
21  submitting wage records and an equal pay compliance
22  statement to the Director as follows:
23  (A) Wage Records. Any business that is required to
24  file an annual Employer Information Report EEO-1 with
25  the Equal Employment Opportunity Commission must also
26  submit to the Director a copy of the business's most

 

 

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1  recently filed Employer Information Report EEO-1. The
2  business shall also compile a list of all employees
3  during the past calendar year, separated by gender and
4  the race and ethnicity categories as reported in the
5  business's most recently filed Employer Information
6  Report EEO-1, and the county in which the employee
7  works, the date the employee started working for the
8  business, any other information the Department deems
9  necessary to determine if pay equity exists among
10  employees, and report the total wages as defined by
11  Section 2 of the Illinois Wage Payment and Collection
12  Act paid to each employee during the past calendar
13  year, rounded to the nearest $100, to the Director.
14  (B) Equal Pay Compliance Statement. The business
15  must submit a statement signed by a corporate officer,
16  legal counsel, or authorized agent of the business
17  certifying:
18  (i) that the business is in compliance with
19  this Act and other relevant laws, including but
20  not limited to: Title VII of the Civil Rights Act
21  of 1964, the Equal Pay Act of 1963, the Illinois
22  Human Rights Act, and the Equal Wage Act;
23  (ii) that the average compensation for its
24  female and minority employees is not consistently
25  below the average compensation, as determined by
26  rule by the United States Department of Labor, for

 

 

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1  its male and non-minority employees within each of
2  the major job categories in the Employer
3  Information Report EEO-1 for which an employee is
4  expected to perform work, taking into account
5  factors such as length of service, requirements of
6  specific jobs, experience, skill, effort,
7  responsibility, working conditions of the job,
8  education or training, job location, use of a
9  collective bargaining agreement, or other
10  mitigating factors; as used in this subparagraph,
11  "minority" has the meaning ascribed to that term
12  in paragraph (1) of subsection (A) of Section 2 of
13  the Business Enterprise for Minorities, Women, and
14  Persons with Disabilities Act;
15  (iii) that the business does not restrict
16  employees of one sex to certain job
17  classifications, and makes retention and promotion
18  decisions without regard to sex;
19  (iv) that wage and benefit disparities are
20  corrected when identified to ensure compliance
21  with the Acts cited in item (i);
22  (v) how often wages and benefits are
23  evaluated; and
24  (vi) the approach the business takes in
25  determining what level of wages and benefits to
26  pay its employees; acceptable approaches include,

 

 

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1  but are not limited to, a wage and salary survey.
2  (C) Filing fee. The business shall pay to the
3  Department a filing fee of $150. Proceeds from the
4  fees collected under this Section shall be deposited
5  into the Equal Pay Registration Fund, a special fund
6  created in the State treasury. Moneys in the Fund
7  shall be appropriated to the Department for the
8  purposes of this Section.
9  (2) Receipt of the equal pay compliance application
10  and statement by the Director does not establish
11  compliance with the Acts set forth in item (i) of
12  subparagraph (B) of paragraph (1) of this subsection (c).
13  (3) A business that has employees in multiple
14  locations or facilities in Illinois shall submit a single
15  application to the Department regarding all of its
16  operations in Illinois.
17  (d) Issuance or rejection of registration certificate.
18  After January 1, 2022, the Director must issue an equal pay
19  registration certificate, or a statement of why the
20  application was rejected, within 45 calendar days of receipt
21  of the application. Applicants shall have the opportunity to
22  cure any deficiencies in its application that led to the
23  rejection, and re-submit the revised application to the
24  Department within 30 calendar days of receiving a rejection.
25  Applicants shall have the ability to appeal rejected
26  applications. An application may be rejected only if it does

 

 

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1  not comply with the requirements of subsection (c), or the
2  business is otherwise found to be in violation of this Act. The
3  receipt of an application by the Department, or the issuance
4  of a registration certificate by the Department, shall not
5  establish compliance with the Equal Pay Act of 2003 as to all
6  Sections except Section 11. The issuance of a registration
7  certificate shall not be a defense against any Equal Pay Act
8  violation found by the Department, nor a basis for mitigation
9  of damages.
10  (e) Revocation of registration certificate. An equal pay
11  registration certificate for a business may be suspended or
12  revoked by the Director when the business fails to make a good
13  faith effort to comply with the Acts identified in item (i) of
14  subparagraph (B) of paragraph (1) of subsection (c), fails to
15  make a good faith effort to comply with this Section, or has
16  multiple violations of this Section or the Acts identified in
17  item (i) of subparagraph (B) of paragraph (1) of subsection
18  (c). Prior to suspending or revoking a registration
19  certificate, the Director must first have sought to conciliate
20  with the business regarding wages and benefits due to
21  employees.
22  Consistent with Section 25, prior to or in connection with
23  the suspension or revocation of an equal pay registration
24  certificate, the Director, or his or her authorized
25  representative, may interview workers, administer oaths, take
26  or cause to be taken the depositions of witnesses, and require

 

 

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1  by subpoena the attendance and testimony of witnesses, and the
2  production of personnel and compensation information relative
3  to the matter under investigation, hearing or a
4  department-initiated audit.
5  Neither the Department nor the Director shall be held
6  liable for good faith errors in issuing, denying, suspending
7  or revoking certificates.
8  (f) Administrative review. A business may obtain an
9  administrative hearing in accordance with the Illinois
10  Administrative Procedure Act before the suspension or
11  revocation of its certificate or imposition of civil penalties
12  as provided by subsection (i) is effective by filing a written
13  request for hearing within 20 calendar days after service of
14  notice by the Director.
15  (g) Technical assistance. The Director must provide
16  technical assistance to any business that requests assistance
17  regarding this Section.
18  (h) Access to data.
19  (1) Any individually identifiable information
20  submitted to the Director within or related to an equal
21  pay registration application or otherwise provided by an
22  employer in its equal pay compliance statement under
23  subsection (c) shall be considered confidential
24  information and not subject to disclosure pursuant to the
25  Illinois Freedom of Information Act. As used in this
26  Section, "individually identifiable information" means

 

 

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1  data submitted pursuant to this Section that is associated
2  with a specific person or business. Aggregate data or
3  reports that are reasonably calculated to prevent the
4  association of any data with any individual business or
5  person are not confidential information. Aggregate data
6  shall include the job category and the average hourly wage
7  by county for each gender, race, and ethnicity category on
8  the registration certificate applications. The Department
9  of Labor may compile aggregate data from registration
10  certificate applications.
11  (2) The Director's decision to issue, not issue,
12  revoke, or suspend an equal pay registration certificate
13  is public information. Beginning December 31, 2024, and
14  annually thereafter, the Director shall make publicly
15  available a list of businesses that were issued an equal
16  pay registration certificate by the Department in the
17  previous 2 calendar years.
18  (3) Notwithstanding this subsection (h), a current
19  employee of a covered business may request anonymized data
20  regarding their job classification or title and the pay
21  for that classification. No individually identifiable
22  information may be provided to an employee making a
23  request under this paragraph.
24  (4) Notwithstanding this subsection (h), the
25  Department may share data and identifiable information
26  with the Department of Human Rights, pursuant to its

 

 

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1  enforcement of Article 2 of the Illinois Human Rights Act,
2  or the Office of the Attorney General, pursuant to its
3  enforcement of Section 10-104 of the Illinois Human Rights
4  Act.
5  (5) Any Department employee who willfully and
6  knowingly divulges, except in accordance with a proper
7  judicial order or otherwise provided by law, confidential
8  information received by the Department from any business
9  pursuant to this Act shall be deemed to have violated the
10  State Officials and Employees Ethics Act and be subject to
11  the penalties established under subsections (e) and (f) of
12  Section 50-5 of that Act after investigation and
13  opportunity for hearing before the Executive Ethics
14  Commission in accordance with Section 20-50 of that Act.
15  (i) Penalty. Falsification or misrepresentation of
16  information on an application submitted to the Department
17  shall constitute a violation of this Act and the Department
18  may seek to suspend or revoke an equal pay registration
19  certificate or impose civil penalties as provided under
20  subsection (c) of Section 30.
21  (Source: P.A. 101-656, eff. 3-23-21; 102-36, eff. 6-25-21;
22  102-705, eff. 4-22-22.)

 

 

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