September 21, 2018
To the Honorable Members of
The Illinois House of Representatives,
100th General Assembly:
Today,
I return House Bill 4163 with specific recommendations for change.
This legislation would prohibit employers from
inquiring about previous salary and compensation of prospective employees.
House Bill 4163 substantially resembles House
Bill 2462, which I vetoed in August 2017 with the same recommendations I make
today. Since that time, the gender wage gap has remained. My position has not
changed – I am committed to eliminating the gender wage gap and I strongly
support wage equality. I noted in my prior veto message that Massachusetts
already has established a best-in-the-country approach to the issue of
employers inquiring about salary history. I recommended that Illinois model its
legal regime on Massachusetts’ model. Unfortunately, legislators again
refused to push forward a bipartisan approach that properly balanced the
interests of the business community.
Therefore, pursuant to Section 9(e) of Article
IV of the Illinois Constitution of 1970, I hereby return House Bill 4163,
entitled “AN ACT concerning employment,” with the following recommendations for
change:
By replacing page 1, line 5 with “Section 10
and by adding Section 28 as follows:”; and
By replacing page 1, lines 12 through 13 with
“on jobs the performance of which requires equal skill, effort, and
responsibility, and which are”; and
By replacing page 1, line 23 with “Act.”; and
By deleting page 2, lines 1 through 6; and
By replacing page 3, lines 1 through 24 with
the following:
“disclosing or
discussing the employee's wage, salary, or other compensation. However, an
employer may prohibit a human resources employee, a supervisor, or any other
employee whose job responsibilities require or allow access to other employees'
wage or salary or other compensation information from disclosing such
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, salary, or other compensation history of a
prospective employee from the prospective employee or a current or former
employer or to require that a prospective employee's wage, salary, or other
compensation history meet certain criteria. This subsection does not apply if:
(1) the
prospective employee's wage, salary or other compensation 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 such information.
An employer may seek
or confirm a prospective employee's wage, salary, or other compensation history
after an offer of employment, with wage, salary, or other compensation, has
been negotiated and made to the prospective employee.”; and
By inserting on page 4, immediately
after line 11 the following:
“(820 ILCS 112/28 new)
Sec. 28.
Self-evaluation.
(a) An employer
against whom an action is brought alleging a violation of subsection (a) of
Section 10 and who, within the previous 3 years and prior to the commencement
of the action, has completed a self-evaluation of the employer's pay practices
and can demonstrate that progress has been made 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, in accordance with
that evaluation, shall have an affirmative defense to liability under
subsection (a) of Section 10. For purposes of this subsection, an employer's
self-evaluation may be of the employer's own design, so long as 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) Examination of the
employer’s 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; or
6) An evaluation of
employee training, development and promotion opportunities.
(b) An employer who
has completed a self-evaluation within the previous 3 years and prior to the
commencement of the action and can demonstrate that progress has been made
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 any steps were taken to address
any identified deficiencies, shall not be entitled to an affirmative defense
under this subsection, and shall be liable for any civil fine for a violation
of this Act:
(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.
(c) Evidence of a
self-evaluation or remedial steps undertaken in
accordance with this
Section shall not be admissible in any proceeding as evidence of a violation of
this Act.
(d) An employer who
has not completed a self-evaluation shall not
be subject to any
negative or adverse inference as a result of not having completed a
self-evaluation.
(e) An employer who
uses the affirmative defense under this Section
is not precluded from
using any other affirmative defense under this Act.”; and
By deleting page 4, line 12
through page 6, line 19.
With these changes, House Bill 4163 will have
my approval. I respectfully request your concurrence.
Sincerely,
Bruce Rauner
GOVERNOR