Bill Text: IL HB3539 | 2017-2018 | 100th General Assembly | Engrossed

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Bill Title: Amends the Illinois Procurement Code. Requires bidders to obtain an equal pay certificate before a purchasing agency may issue a contract to the bidder. Provides for the Department of Employment Security to issue the certificates. Specifies information to be included in an application for an equal pay certificate. Requires bidders to comply with the Equal Pay Act of 2003, Equal Wage Act, Illinois Human Rights Act, and Title VII of the Civil Rights Act of 1964. Amends the State Finance Act to create the Equal Pay Certificate Fund. Provides for moneys in the Fund to be used to administer the equal pay certificate requirements.

Spectrum: Partisan Bill (Democrat 27-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB3539 Detail]

Download: Illinois-2017-HB3539-Engrossed.html

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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

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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

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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

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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

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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

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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

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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.