On March 23, 2021, Public Act 101-0656 (the Act) went into effect in Illinois, containing important limitations on the use of criminal convictions in employment actions, and imposing significant reporting and certification requirements on Illinois employers. Taft's Employment and Labor Relations group previously authored a law bulletin on the legislation, available here. Illinois employers should review the requirements of the new law carefully. The new law contains the following provisions:
- Prohibition on Use of Criminal Convictions: The Act amends the Illinois Human Rights Act (IHRA) to generally prohibit the use of criminal convictions in employment actions, unless certain specific conditions are met, and notices are provided to the applicant or employee. This provision is effective immediately.
- Reporting of EEO Data: The Act also amends the Business Corporation Act to add an additional requirement for any corporation required to file an EEO-1 report. Now, those same corporations must also file substantially similar data found in the EEO-1 report with its annual corporate report filings. This new obligation applies to corporate reports filed on or after Jan. 1, 2023.
- Equal Pay Certification: Finally, the Act amends the Equal Pay Act of 2003 to require employers with more than 100 employees to obtain an "equal pay registration certificate" from the Illinois director of labor. To obtain the certificate, employers must make certain disclosures regarding employee wages and compliance certifications. Notably, the Act provides for a civil penalty in an amount equal to one percent of the business's gross profits, in the event that a business does not obtain a certificate, or if a business's certificate is suspended or revoked after an investigation by the Illinois Department of Labor. The certification must be obtained within three years of the effective date of the Act (or by March 24, 2024).
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