HB3539eng 100TH GENERAL ASSEMBLY

HB3539 Engrossed LRB100 05496 MLM 15507 b

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Equal Pay Certificate Act.

Section 5. Scope of Act.

(a) After June 1, 2018, no contract to which this Act applies shall be executed with a bidder, offeror, contractor, vendor, or potential contractor, as defined in the Illinois Procurement Code, unless it has an equal pay certificate or it has an equal pay certificate or it has certified in writing that it is exempt.

(b) A certificate is valid for 4 years.

Section 10. Application for equal pay certificate.

(a) A bidder shall apply for equal pay certificate by paying a $150 filing fee and submitting an equal pay compliance statement to the Department of Employment Security. The proceeds from the fees collected under this Act shall be deposited in to the Equal Pay Certificate Fund, a special fund created in the State Treasury. Money in the Fund shall be appropriated to the Department of Employment Security for the purposes of this Act. The Department of Employment Security shall issue an equal pay certificate of compliance to a business that submits to the Department of Employment Security a statement signed by the chairperson of the board of chief executive officer of that business:

(1) that the business is in compliance with Title VII of the Civil Rights Act of 1964, the Equal Pay Act of 2003, the Equal Wage Act, and the Illinois Human Rights Act;

(2) that the average compensation for its female employees is not consistently below the average compensation for its male employees within each of the major job categories in the Employer Information Report EEO-1 for which an employee is expected to perform work under the contract, taking into account factors such as length of service, requirements of specific jobs, experience, skill, effort, responsibility, working conditions of the job, or other mitigating factors;

(3) that the business does not restrict employees of one sex to certain job classifications and makes retention and promotion decisions without regard to sex;

(4) that wage and benefit disparities are corrected when identified to ensure compliance with the laws cited in item (1) and with item (2); and

(5) how often wages and benefits are evaluated to ensure compliance with the laws cited in item (1) and with item (2).

(b) The equal pay compliance statement shall also indicate whether the business, in setting compensation and benefits utilizes:

(1) a market pricing approach;

(2) state prevailing wage or union contract requirements;

(3) a performance pay system;

(4) an internal analysis; or

(5) an alternative approach to determine what level of wages and benefits to pay its employees.

If the business uses an alternative approach, the business must provide a description of its approach.

(c) Receipt of the equal pay compliance statement by the Department of Employment Security does not establish compliance with the laws identified in item (1) of subsection (a).

Section 15. Issuance or rejection of certificate. The Department of Employment Security must issue an equal pay certificate, or a statement of why the application was rejected, within 15 days after receipt of the application. An application may be rejected only if it does not comply with the requirements of Section 10.

Section 20. Revocation of certificate. An equal pay certificate for a business may be suspended or revoked by the Department of Employment Security when the business fails to make a good-faith effort to comply with the laws identified in item (1) of subsection (a) of Section 10, fails to make a good-faith effort to comply with this Act, or has multiple violations of this Article or the laws identified in item (1) of subsection (a) of Section 10. Prior to suspending or revoking a certificate, the Department of Employment Security must first have sought to conciliate with the business regarding wages and benefits due to employees.

Section 25. Administrative review.

(a) A business may obtain an administrative hearing before the suspension or revocation of its certificate is effective pursuant to the Illinois Administrative Procedure Acts.

(b) The Department of Employment Security shall adopt rules for the fair administration of suspending or revoking equal pay certificates by March 1, 2018.

Section 30. Revocation of contract.

(a) If a contract is awarded to a business that does have an equal pay certificate as required under Section 10, or a business that is not in compliance with subsection (a) of Section 10, the Department of Employment Security may recommend that the contract be voided by the applicable Chief Procurement Officer as provided by Section 50-60 of the Illinois Procurement Code. The purchasing agency that is a party to the agreement must be notified by the Department of Employment Security prior to the Department of Employment Security making a recommendation to the applicable Chief Procurement Officer.

(b) A contract subject to this Act may be amended or terminated upon notice that the Department of Employment Security has suspended or revoked the certificate of the business.

Section 35. Technical Assistance. The Department of Employment Security must provide technical assistance to any business that requests assistance regarding this Act.

Section 40. Audit. The Department of Employment Security may audit the business' compliance with this Act. As part of an audit, upon request, a business must provide the Department of Employment Security the following information with respect to employees expected to perform work under the contract in each of the major job categories in the Employer Information Report EEO-1:

(1) number of male employees;

(2) number of female employees;

(3) average annualized salaries paid to male employees and to female employees, in the manner most consistent with the employer's compensation system, within each major job category;

(4) information on performance payments, benefits, or other elements of compensation, in the manner most consistent with the employer's compensation system, if requested by the Department of Employment Security as part of a determination as to whether these elements of compensation are different for male and female employees;

(5) average length of service for male and female employees in each major job category; and

(6) other information identified by the business or by the Department of Employment Security, as needed, to determine compliance with items specified in subsection (a) of Section 10.

Section 45. Access to data. Data submitted to the Department of Employment Security related to equal pay certificates are private data on individuals or nonpublic data with respect to persons other than Department employees. The Department's decision to issue, not issue, revoke, or suspend an equal pay certificate is public data. The Department shall publish a list of all businesses in compliance with this Act with current and valid equal pay certificates on its website.

Section 50. Report. The Department of Employment Security shall report to the Governor and the General Assembly by January 31 of every odd-numbered year, beginning January 31, 2019. The report shall indicate the number of equal pay certificates issued, the number of audits conducted, the processes used by contractors to ensure compliance with subsection (a) of Section 10, and a summary of its auditing efforts.

Section 55. The State Finance Act is amended by adding Section 5.878 as follows:

(30 ILCS 105/5.878 new)

Sec. 5.878. The Equal Pay Certificate Fund.

Section 99. Effective date. This Act takes effect upon becoming law.