The Illinois legislature and Governor Pritzker had a productive year, with new laws taking effect to increase worker protections, expand leave rights, and new impose new or updated compliance obligations for employers. Below is Caffarelli & Martin’ summary of the most significant legal changes — what they are, when they take effect, and what they mean in practice.
- Illinois Human Rights Act (IHRA) Overhaul — Effective Jan. 1, 2026
Discretionary Fact-Finding Conferences: The long-standing requirement that the Illinois Department of Human Rights must hold a fact-finding conference in every discrimination charge has been changed. Now, conferences are optional unless both parties jointly request one in writing within 90 days after a charge is filed.
Enhanced Civil Penalties: The law now authorizes civil penalties to “vindicate the public interest.” Penalty ranges are tiered based on prior violations: up to $16,000 for a first violation, $42,500 for a second, and $70,000 for repeated violations — even if the prior violation occurred outside typical look-back periods.
AI and Predictive Analytics Restrictions: Employers may no longer use AI tools in hiring, promotion, discipline, tenure, discharge, or other employment decisions if the tool results in discrimination based on protected traits (e.g., race, gender, age). The law also expressly bans using zip code or similar proxies for race or other protected classes in those systems. Employers must disclose when AI is used in these decisions.
- Nursing Mothers in the Workplace Act — Effective Jan. 1, 2026
Amendments ensure that employers provide paid “reasonable” break time for employees to express breast milk for up to one year after childbirth. Break periods must be compensated at the employee’s regular rate of pay and cannot be deducted from accrued paid leave or otherwise reduce pay. Employers also must evaluate requests without creating unnecessary barriers.
- Workplace Transparency Act Enhancements — Effective Jan. 1, 2026
The Workplace Transparency Act was strengthened to protect employees from contractual provisions that could chill concerted activity — i.e., discussions or actions taken collectively regarding workplace issues. Contracts, settlement agreements, and arbitration clauses cannot restrict such activities.
Confidentiality Clauses: Settlement or termination agreements may include confidentiality terms only if those terms expire within five years and do not impede reporting unlawful practices.
Damages for Violations: Employees may recover consequential damages if a contract violates the Act.
- Blood and Organ Donation Leave — Effective Jan. 1, 2026
Changes expand eligibility for organ donation leave and clarify wage compensation for part-time employees. Eligible workers may take up to 10 days in a 12-month period to serve as an organ donor. Part-time employees must be paid based on their average daily earnings over the prior two months.
- Victims’ Economic and Safety Act (VESSA) Amendments — Effective Jan. 1, 2026
Under the updated VESSA, employers must allow employees (or family/household members acting on their behalf) to use employer-issued devices (e.g., phones, laptops) to record or document violence, such as domestic violence or similar crimes. Employers must provide access to photos, recordings, or other evidence stored on these devices if needed for legal proceedings and post notices of these rights in the workplace. Importantly, retaliation for using such devices — including firing, harassment, or discrimination — is expressly prohibited.
- Transportation Benefits Program Act — Expanded Access (Jan. 1, 2026)
Part-time employees at covered employers (50+ workers within one mile of fixed-route transit) may now access pre-tax commuter benefits previously limited to full-time employees.
- Digital Voice and Likeness Protection — Effective Jan. 1, 2026
The law clarifies that contracts allowing creation or use of an employee’s digital replica (e.g., synthetic voice or likeness) are unenforceable unless the agreement clearly describes intended uses and the individual was represented by counsel or a union.
- Family Neonatal Intensive Care Leave Act — Effective June 1, 2026
This law creates unpaid job-protected NICU leave for employees whose newborn requires intensive care. Leave amounts vary by employer size: 10 days for employers with 16–50 workers and 20 days for employers with 51+. FMLA-eligible employees must first exhaust federal FMLA leave before taking NICU leave.
- Military Funeral Honors Leave — Effective Aug. 1, 2025
Employers with 51+ employees must provide up to 8 hours/month (40 hours/year) of paid leave for employees participating in military funeral honors (e.g., flag folding, rifle salute). Employees must give reasonable notice, and employers may request confirmation of participation.
- Illinois Wage Payment and Collection Act Overhaul — Effective Aug. 1, 2025
The Illinois Department of Labor’s enforcement powers were significantly expanded. IDOL decisions ordering wage payments or penalties now automatically become state-collectible debts if unpaid within 35 days, and employers face higher administrative fees and steeper penalty accrual. Procedures now more closely resemble civil judgments.
- Worker Safety Standards (Workers’ Rights & Worker Safety Act) — Effective Aug. 14, 2025
This Act mandates that Illinois workplace safety and wage-hour standards must remain at least as protective as federal law as of April 28, 2025. If federal standards weaken, Illinois must retain the prior federal protections.
- ISERRA Updates — Effective Aug. 15, 2025
The Illinois Service Member Employment and Reemployment Rights Act now defines “work days” based on scheduled shifts rather than calendar days for calculating differential pay during military leave and limits concurrent compensation to 30 days per year.
- Equal Pay & Prevailing Wage Law Changes — Effective June 30, 2025
The Illinois Equal Pay Act now applies to private employers with 100+ employees regardless of federal EEO-1 reporting obligations and abandons federal EEO-1 job categories in favor of broader classifications. The Prevailing Wage Act now mandates apprentices be paid full journeyman fringe benefits irrespective of collective bargaining terms.
- Minimum Wage Increases (Chicago) — Effective July 1, 2025
Chicago’s minimum wage for employers with four or more employees increased to $16.60/hour, and the tipped minimum rose to $12.62/hour. Youth worker wage standards were updated accordingly.
If you have any questions about these or any other employment laws, please contact Caffarelli & Martin Ltd. at (312) 763-6880 or by visiting www.caffarelli.com.
