Software Engineer Salary Transparency Requirements in Illinois

What Does Illinois Law Require?

Under Illinois Equal Pay Act (amended by HB 3129), effective January 1, 2025, employers posting Software Engineer positions in Illinois must include specific compensation disclosures. Here is exactly what the law mandates:

Why Software Engineer Roles Are Especially at Risk

Tech roles are the most frequently posted remote positions, making them a top target for multi-state compliance audits. Companies listing "Remote - US" without salary ranges face exposure in every active jurisdiction simultaneously.

The typical salary range for a Software Engineer is $120,000 - $200,000, though this varies significantly by seniority, location, and company size. Illinois law requires that your posted range reflect a good-faith estimate of what you actually expect to pay - not an artificially wide band designed to technically comply.

Benefits Disclosure: Illinois's Extra Requirement

Unlike many states, Illinois requires that you go beyond just salary. Your Software Engineer posting must also include a general description of all benefits and other compensation. This includes:

• Health, dental, and vision insurance
• Retirement plans (401k, pension, etc.)
• Paid time off (PTO, sick leave, holidays)
• Equity, stock options, or profit sharing
• Any other form of compensation (bonuses, commissions, signing bonuses)

A posting that includes the salary range but omits benefits information is still considered non-compliant in Illinois.

Penalties and Enforcement

Non-compliance carries real financial consequences. Illinois penalties for failing to include required salary information in your Software Engineer posting include:

Illinois is one of the newest states to require salary posting (effective 2025), meaning many employers are still unaware of the requirement. First-year enforcement is expected to be particularly active as the state establishes precedent.

Remote Software Engineer Roles and Illinois Compliance

If your Software Engineer position is listed as "Remote" or "Remote - US" and you do not explicitly exclude Illinois from the job listing, you must comply with Illinois salary transparency law. This is true even if your company has no physical presence in Illinois.

Technology roles like Software Engineer are frequently posted as remote-eligible, which means many employers unknowingly trigger Illinois compliance requirements. The safest approach is to include Illinois-compliant salary disclosures in all remote postings, or to explicitly restrict hiring to states where you are not subject to transparency mandates.

How to Make Your Software Engineer Posting Compliant

Compliance is straightforward when you know what to include. Follow these steps:

1. Determine your pay range. Set a realistic minimum and maximum for the Software Engineer role based on market data and internal pay bands.
2. Include the range in the posting. State the range clearly - such as "$X - $Y annually" or "$X - $Y per hour." Avoid vague language like "competitive salary."
3. List benefits and other compensation. Include health insurance, retirement plans, PTO, equity, and any other benefits. Illinois requires this alongside the salary range.
4. Run a compliance check. Use our free compliance checker to verify your posting meets Illinois requirements before publishing.

Helpful Resources