Changes to Illinois employment law are coming as soon as January 1, 2026! Here are some highlights Illinois employers should look out for as we enter the new year:
1. Illinois Workplace Transparency Act (“IWTA”)
Enacted in 2019, the IWTA applies to nearly every employer in Illinois by:
- Restricting non-disclosure and non-disparagement (unless made mutual) language in employment agreements, separation agreements, and settlement agreements;
- Restricting an employer’s ability to require mandatory arbitration of sexual harassment or other discrimination claims;
- Requiring annual sexual harassment training; and
- Directing employers to report settlements and adverse judgments to the Illinois Department of Human Rights.
As noted above, the IWTA protects an employee’s right to freely report allegations of unlawful conduct by prohibiting employers from imposing unilateral terms of contract with employees that deny an employee a substantive or procedural right or remedy related to such allegations. Effective January 1, 2026, the IWTA has been amended to expand the scope of the law and its particular impact on employment, separation, and settlement agreements (collectively, “agreements”). Those changes are described below:
- Expanded Definition of Unlawful Employment Practice: The definition of “unlawful employment practice” has been expanded to include most employment claims, including wage and occupational safety claims.
- Employees Cannot Be Prohibited From Reporting Allegations of Concerted Activity: The IWTA now includes a definition of “concerted activity” and provides that agreements may not prohibit, prevent, or restrict an employee from (1) reporting allegations of unlawful conduct to government officials, or (2) engaging in concerted activity to address work-related issues.
- Certain Contracted Conditions of Employment Must be Mutual: The IWTA clarifies that employers cannot unilaterally condition employment or continued employment on an agreement to (1) shorten the applicable statute of limitation, (2) apply non-Illinois law to an Illinois employee’s claim, (3) state that confidentiality is the preference of the employee, or (4) require a venue outside of Illinois to adjudicate an Illinois employee’s claim.
- Additional Consideration for Certain Confidentiality Provisions: Confidentiality provisions with regard to alleged unlawful employment practices must be supported by distinct, bargained-for consideration that is separate from the consideration bargained for in exchange for a general release of claims. This could be accomplished by attributing part of the consideration payment explicitly toward the confidentiality provision within the agreement.
- Remedies: Consequential damages are now an express remedy under the Act, such as, for example, damages for reputational harm.
2. Illinois Human Rights Act (“IHRA”)
The IHRA prohibits discrimination, harassment, sexual harassment, and retaliation against individuals in connection with employment. The Illinois Department of Human Rights (“IDHR”) administers the IHRA and is the agency that employees submit complaints to when they believe an employer has engaged in conduct violating the IHRA.
Effective January 1, 2026, the IHRA has new relaxed procedural requirements for the IDHR to manage employee complaints. Specifically, it is now discretionary, as opposed to mandatory, for the IDHR to bring employee complaints to a fact-finding conference. This means the IDHR now has discretion to investigate the outcome of employee complaints based on written submission by the parties alone. As a result, we can expect the IDHR’s process for reviewing employee complaints of discrimination may become more efficient.
Additionally, as reported in last year’s article regarding key Illinois changes for 2025, the IHRA amendment that makes it a civil rights violation for an employer to use AI in a manner that subjects employees to discrimination officially goes into effect on January 1, 2026. Employers must ensure that AI used or relied upon to make employment decisions does not, under any circumstances, have the effect of discriminating against employees on the basis of a protected class. The failure to notify employees of the employer’s use of AI is now also a civil rights violation.
3. Illinois Victims’ Economic Security and Safety Act (“VESSA”)
Illinois’ VESSA provides employees who are victims of domestic violence, sexual violence, gender violence, or any other crime of violence or who have family or household members who are victims of such violence up to 12 weeks of unpaid leave (dependent on employer size) during any 12-month period. The purpose of the unpaid leave is to seek medical help, legal assistance, counseling, safety planning and other assistance.
Effective January 1, 2026, the law now also prohibits employers from firing, refusing to hire, discriminating against, or otherwise retaliating against an employee when that employee uses employer-issued devices to record a crime of violence, including domestic violence and sexual violence, committed against the employee or their family or household member.
4. Employee Blood and Organ Donation Leave Act
Effective January 1, 2026, Illinois’ blood and organ donation leave law expands to part-time employees, providing part-time employees up to 10 days of leave in any 12-month period to serve as an organ donor. This law applies only to employers with 51 or more employees.
5. Nursing Mothers in the Workplace Act
Effective January 1, 2026, employers must provide nursing mothers reasonable paid break times to express milk. This break must be paid at the employee’s regular rate of pay, unless doing so would impose an undue hardship. Employers cannot require an employee to use paid time off, or otherwise reduce the employee’s compensation, during this break time.
6. The Family Neonatal Intensive Care Leave Act
Effective June 1, 2026, employers must provide unpaid leave to an employee if the employee’s child is in the NICU. Employers with 16 to 50 employees must provide 10 days of leave; employers with 50+ employees must provide up to 20 days of leave.
7. Child Care Act of 1969
Effective January 1, 2026, employees of a day care center, day care home, or group day care home must undergo a criminal background check every five years.
As we enter the new year, Illinois employers should review their current policies and make changes where necessary to ensure compliance with the new slate of laws. The members of Thompson Coburn’s Labor & Employment practice group are available to assist with any changes and provide further information and specifications regarding these new requirements. If you have questions, please feel free to call or email your regular Thompson Coburn contact.
