Illinois Pay Transparency Requirements for Hospitality Job Ads: What Illinois Employers Need to Know

Illinois Pay Transparency Requirements for Hospitality Job Ads: Key Takeaways

• Effective January 1, 2025, Illinois requires employers with 15+ employees to disclose pay scale and benefits in job postings.
• Job postings must include wage or salary range, benefits, and bonuses or other compensation details.
• Employers must notify current employees of promotion opportunities within 14 days of external job postings.

Illinois's new pay transparency law mandates detailed compensation disclosures for job ads, impacting hospitality employers statewide.

This guide helps hospitality employers understand key compliance elements and what to include in job postings starting 2025.

For practical guidance on disclosures, review salary in job postings.

1. Illinois Pay Transparency Requirements for Hospitality Job Ads

Starting January 1, 2025, Illinois law requires employers with 15 or more employees to include clear pay scale and benefits information in all job postings for jobs performed at least partly in Illinois.

This includes positions based outside the state if the employee reports to a supervisor, office, or worksite within Illinois.

The mandatory disclosures are:

• Pay Scale Disclosure: Employers must state the wage or salary, or at least the range, expected for the position.
• Benefits Description: Job postings must include a general description of benefits and other compensation such as bonuses, stock options, or incentives the employer expects to offer.

For hospitality job ads, this means clearly detailing hourly wage ranges or salaries and any benefits like health insurance, tips, bonuses, or employee meal perks.

When setting ranges for leadership roles, consult current restaurant manager salary benchmarks for your market.

2. Promotion Opportunities Prioritized in Hospitality Employers' Job Postings

Illinois law also emphasizes internal promotion transparency.

Hospitality employers must announce or post promotion opportunities to current employees within 14 calendar days of externally posting the job.

This helps ensure that existing staff have fair access to advancement before positions are filled externally.

Clear communication channels should be established for timely notification, which is especially important in fast-paced hospitality environments.

Strengthen internal interest and applications with employer branding in job postings.

3. Third-Party and Record-Keeping Considerations for Hospitality Job Postings in Illinois

Many hospitality employers use third-party job boards or recruitment firms.

If so, employers must provide these third parties with the pay scale and benefits information to include in job postings.

The third party is accountable for including the required information unless it proves the employer did not supply it.

Additionally, hospitality employers must keep records of pay scales, benefits, and job postings associated with each position for at least five years.

Maintaining thorough records supports compliance and helps defend against potential enforcement actions.

Set up simple job posting tracking to document ranges and updates over time.

For tipped positions, align ranges with local server salary data.

4. Non-Retaliation and Penalties Under Illinois Pay Transparency Law

Illinois prohibits employers from retaliating against applicants or employees who exercise rights under the pay transparency law.

This includes refusing to interview, hire, promote, or employ someone for seeking or discussing pay information.

The Illinois Department of Labor (IDOL) enforces the law and can impose civil penalties for each violation.

Penalties apply per non-compliant job posting, making strict adherence critical for hospitality employers with multiple open positions.

Avoid discriminatory language by following this job posting compliance guide.

5. Strategies for Hospitality Employers to Achieve Illinois Pay Transparency Compliance

Hospitality employers should adopt the following to ensure compliance:

• Review and update all job descriptions to clearly state wages or salary ranges along with benefits and compensation details.
• Communicate promotion opportunities effectively to current employees within the 14-day timeframe.
• Provide complete pay and benefit information to third-party recruiters or job boards.
• Implement record-keeping systems tracking pay scales, benefits, job postings, and promotion notices for at least five years.
• Train hiring managers and HR staff on the new requirements to avoid inadvertent violations.

For bar roles, reference current bartender salary ranges when advertising tips and incentives.

6. Key Benefits of Illinois Pay Transparency Requirements for Hospitality Employers

While compliance requires effort, the law brings advantages that can improve hospitality workplaces.

Transparency in pay and benefits fosters trust and improves recruitment by setting clear expectations upfront.

Also, standardized communication about promotions encourages employee retention and motivation.

These factors support a more engaged and stable hospitality workforce in Illinois.

Hotel teams should also calibrate postings to housekeeper salary norms in their area.

7. Legal and Government Resources for Illinois Pay Transparency in Hospitality

For additional guidance and to stay updated, hospitality employers can consult:

• Illinois Department of Labor – Main resource for wage laws and enforcement information.
• Equal Pay Act Pay Transparency FAQ – Answers specific questions about salary disclosures.
• Illinois Government Press Release on Pay Transparency Law – Official announcement and details of implementation.

Illinois Pay Transparency Requirements for Hospitality Job Ads: Conclusion

Illinois' new pay transparency requirements, effective January 2025, require hospitality employers with 15+ employees to include detailed pay scale and benefits information in job postings.

Compliance involves clearly stating wages and benefits, communicating promotion opportunities internally, and maintaining extensive records.

By proactively adopting these measures and training staff, hospitality employers can improve transparency, attract talent, and avoid penalties under the law.