Closing The Wage Gap: What Businesses Should Know About Governor Pritzker's New Law Aimed At Gender Equity

Many employees, namely women, are held down under what is commonly known as the "wage gap". 

By Shelly Evans

Mid-July, the fight for gender equality in the workplace scored a major win. The new law bars employers from forcing applicants to divulge their previous salaries on applications and during the hiring process. While there is a caveat for employers to enquire about past salaries post-offer, they cannot demand to know the dollar amount earned yearly or even hourly of an employee before offering them a position and a salary range. 

What does this mean for Employers? 

Up to July companies have been able to skate by and keep overhead and costs low by paying employers slightly more than their previous wage, or on par with it - but now wage speculation will be based on merit, experience, and ability - not on whatever the last company could afford to pay. If you're an employer, one of the first things you'll likely need to do is amend your interview and application process to eliminate questions on previous salaries. Needless to say, there could be some hefty fines or penalties for ignoring the new law and discriminating against employees based on previous wages. 

The new law won't close the chasm of gender and racial inequality in the workplace, but we believe it's an excellent step in the direction of economic justice and equity. 

What does this mean for Employees?

This new law means for employees seeking to earn a fair wage in proportion to their worth and earning potential - they'll earn what they're worth - not just a few dollars up from their last role. Many employees, namely women, are held down under what is commonly known as the "wage gap". The Wage Gap is named that not just because women (and women of color specifically) are less likely to be hired for higher-level roles due to sexism and racism, but because in order to climb the corporate ladder, your starting salary has to earn enough, and often women of color in being forced to report previously low wages, are unable to advance or make more money year after year, and position after position - because they're only being offered pennies more than their previous salaries. This accounts for a lot of why for every dollar a white man makes, women and especially women of color make dismally less. 

Going forward, employees looking to climb the corporate ladder will not be required to disclose their previous salaries, allowing them to apply for and succeed in higher-level roles that they are qualified for despite what their previous salary may suggest. 

Do you have ideas on how to make work for people of color and women more equitable? Tell us below in the comments, we'll be delighted you joined the conversation.