In March 2021, Illinois made significant updates to the Illinois Human Rights Act (IHRA) through Senate Bill 1480. We revisit this addendum which often creates questions for Illinois employers.
Senate Bill (SB) 1480 Amended 103.1
This bill introduced new obligations for employers in the state, reinforcing Illinois’ commitment to workplace equality and transparency. For employers, understanding these changes is crucial to ensuring compliance and fostering a fair and inclusive work environment. This article will focus on the key aspects of Senate Bill 1480 and how it impacts employers under the IHRA.
What is Senate Bill 1480?
Senate Bill 1480, signed into law by Governor J.B. Pritzker, brought several important changes to the IHRA, particularly in how employers must handle employee background checks, data transparency, and pay equity. These changes are part of a broader effort by the state to address systemic discrimination and ensure equal opportunities for all Illinois workers.
Key Provisions of Senate Bill 1480
1. Criminal Background Checks and Adverse Employment Actions:
One of the most notable provisions of SB 1480 is the restriction on how employers can use criminal background checks in making employment decisions. Employers are now required to follow a specific process before taking any adverse action (e.g., not hiring, demoting, or firing) based on an individual’s criminal record.
- Relevance of the Offense: Employers must consider whether the criminal offense has a substantial relationship to the job in question or poses a risk to the safety of others.
- Notice and Opportunity to Respond: Before taking adverse action, employers must provide the affected individual with written notice, including the specific offense that is being considered, a copy of the criminal background report, and an explanation of the employer’s reasoning. The individual must be given an opportunity to respond and provide evidence of rehabilitation or mitigating circumstances.
2. Equal Pay Act Reporting Requirements:
SB 1480 also introduced new reporting requirements under the Illinois Equal Pay Act. Employers with 100 or more employees in Illinois are now required to obtain an Equal Pay Registration Certificate (EPRC) from the Illinois Department of Labor.
- Wage and Demographic Data: Employers must submit data on employee demographics (including gender, race, and ethnicity) and pay information, broken down by job category. This data is intended to identify and address wage disparities.
- Compliance Timeline: The law requires covered employers to submit their data and apply for the EPRC by specific deadlines, with renewals required every two years.
3. Workforce Transparency Act Enhancements:
The bill also made amendments to the Workforce Transparency Act, expanding the obligations of employers concerning workplace transparency and anti-harassment training. Employers must ensure that their policies and training programs are robust and in line with the updated legal standards.
Compliance Tips for Employers
1. Review and Update Background Check Policies:
Employers should review their background check policies to ensure they are in compliance with the new requirements. This includes training HR staff on the proper procedures for assessing criminal records and providing the required notices to applicants or employees.
2. Prepare for Equal Pay Reporting:
If your company has 100 or more employees, begin preparing for the Equal Pay Registration Certificate by gathering the necessary demographic and wage data. Consider conducting an internal audit to identify any pay disparities and take corrective actions where needed.
3. Enhance Transparency and Anti-Harassment Training:
Ensure that your workplace policies on harassment, discrimination, and transparency are up-to-date and reflect the enhanced requirements under the law. Regular training sessions for all employees, especially managers, are essential to maintaining compliance.
4. Consult Legal Expertise:
Given the complexity of these new requirements, it may be beneficial to consult with legal professionals who specialize in employment law. They can help you navigate the changes and ensure your business is fully compliant.
5. Monitor Legislative Updates:
Employment laws continue to evolve, and staying informed about any future amendments to the IHRA or related legislation is critical. Subscribing to legal updates or joining industry groups can help keep your business ahead of the curve.
Conclusion
Senate Bill 1480 represents a significant enhancement of the Illinois Human Rights Act, imposing new obligations on employers to promote fairness and transparency in the workplace. By understanding and implementing these changes, employers can not only comply with the law but also contribute to a more equitable work environment. Taking proactive measures to align your policies and practices with the updated IHRA will ultimately benefit both your employees and your business.