Employers preparing an Illinois Equal Pay Registration Certificate (EPRC) submission should prepare for changes to the state’s employee data reporting requirements. Beginning Jan. 1, 2027, the Illinois Department of Labor (IDOL) will no longer accept submissions that report an employee’s sex or race as “prefers not to identify.”
This is a change to IDOL’s EPRC submission process, rather than a new statutory or regulatory amendment. The Illinois Equal Pay Act requires covered businesses to report employee wage data separated by gender, race, and ethnicity and authorizes IDOL to require other information needed to evaluate pay equity. The implementing regulations similarly require employers to submit that information in a format specified by IDOL, which has been via a text-searchable, sortable Microsoft Excel file (a template of which is provided on the IDOL’s website).
IDOL’s EPRC FAQs explain that earlier versions of the spreadsheet template permitted “prefers not to identify” entries. IDOL states that increased use of the designation has impeded its ability to enforce the Illinois Equal Pay Act. As of Jan. 1, 2027, IDOL will require businesses to use a revised template that does not include “prefers not to identify,” and the agency will reject submissions that denote that option.
The change does not require employees to self-identify, and IDOL describes voluntary self-identification as the preferred method for collecting demographic information. If an employee declines to self-identify, IDOL’s FAQs identify existing employment records and observer identification as possible sources for the required information. Employers should approach those alternatives carefully and consider potential risks before assigning demographic information an employee did not provide. An employer may also submit an explanatory document addressing an individual employee’s circumstances.
Covered private employers with at least 100 Illinois employees should check their next EPRC filing date and review their data before submission. In particular, employers should identify any “prefers not to identify” entries, and determine how those records will be reported. Employers should obtain the updated template from IDOL rather than reusing a previously downloaded version.
If you have questions about your organization’s Illinois EPRC submissions, contact a Jackson Lewis attorney to discuss.