2025 Illinois Labor And Employment Legislative Roundup

Key Takeaways

• In 2025, Illinois boosted paid breaks for nursing mothers, NICU leave, and organ donation rights for part-time employees.
• Significant amendments to the Workplace Transparency Act will require new compliance measures for employers.
• New laws have expanded worker rights and hiked penalties for wage violations.
• The state strengthened worker safety, added paid military funeral leave, and increased antidiscrimination penalties.

Employers with Illinois workers should be aware of several new employment laws and amendments to existing laws that were enacted earlier this year. While most take effect on January 1, 2026, a few went into effect upon Governor JB Pritzker's signature.

Below are summaries of the new laws.

Paid Breaks for Nursing Mothers in the Workplace

Effective: January 1, 2026 | SB 212

SB 212, which implements significant changes to the Nursing Mothers in the Workplace Act, means that Illinois now joins New York as the second state to require employers to provide paid breaks for nursing employees. Starting January 1, employers will be required to compensate employees for all "reasonable" break time used to express breast milk for up to one year after the child's birth. The break time must be compensated for at the employee's regular rate of pay, and employers cannot require the use of paid leave or reduce pay in any other form during this break time.

As originally introduced, SB 212 would have mandated a fixed 30-minute period; however, the final bill maintained the act's original, undefined "reasonableness" standard. In the absence of clear guidance on the duration of such breaks, employers should develop and consistently enforce a policy that provides sufficient time for each affected employee. Employers must provide these breaks "as needed," unless doing so would create undue hardship as defined by the Illinois Human Rights Act.

Amendment to the Workplace Transparency Act

Effective: January 1, 2026 | HB 3638

Starting January 1, 2026, employers will need to comply with the numerous amendments to the Workplace Transparency Act included in HB 3638, which will affect the use and content of numerous types of employment agreements and policies. Employers should look to revise any employment-related agreements and/or policies (e.g., confidentiality, nondisclosure, settlement, separation) that could implicate the new requirements of the Workplace Transparency Act.

Concerted Activities

First, the Workplace Transparency Act will prohibit any contract, agreement, clause, covenant, waiver, or similar document from restricting an employee, prospective employee, or former employee from engaging in "concerted activities" to address work-related concerns. The bill defines "concerted activities" as those engaged in for the purpose of collective bargaining or other mutual aid and protection as provided in the National Labor Relations Act as it stood on the last day of the Biden administration, as well as under certain Illinois statutes. Agreements must clearly explain workers' rights to engage in protected concerted activity.

The amended Workplace Transparency Act will still allow confidentiality and arbitration provisions if they explicitly recognize the right to engage in these concerted activities, and will permit valid settlement or termination agreements to include confidentiality clauses regarding alleged unlawful employment practices, provided the confidentiality expires within five years of the alleged unlawful employment practice.

Prohibited Unilateral Terms

The amended Workplace Transparency Act will also prohibit provisions that shorten statutes of limitations, apply non-Illinois law to an Illinois employee's claims, and/or require non-Illinois venue for an Illinois employee's claim. Additionally, provisions that unilaterally declare that "confidentiality" is the preference of the employee will also be impermissible. Instead, any confidentiality requirement related to unlawful employment practices must reflect the employee's documented preference rather than a unilateral declaration. Careful drafting is necessary to comply with these new requirements and to avoid inadvertently including impermissible terms.

Additional Consideration

In order to require an employee to keep details of their claims of unlawful employment practices confidential, the employer will also need to offer separate consideration beyond what is already being provided in exchange for the employee's release of claims.

Broader Definition of "Unlawful Employment Practices"

The amended Workplace Transparency Act expands the definition of "unlawful employment practice" to include the definitions of additional laws enforced by federal and Illinois agencies. Before, the act only covered agreements involving discrimination, harassment, and retaliation claims. Now, it will cover agreements involving any claim under any "state or federal law governing employment, including those that are enforced by the Illinois Department of Human Rights, Illinois Department of Labor, Illinois Labor Relations Board, or the Equal Employment Opportunity Commission, U.S. Department of Labor, Occupational Safety and Health Administration, or National Labor Relations Board."

Expanded Legal Proceeding Participation Rights

In addition to proceedings brought by government agencies, employees will also have the right to participate in private litigation, arbitration, or other proceedings if they are required to by a court, government agency, or the legislature. This includes giving testimony in depositions taken in connection with any such proceeding. Agreements must expressly acknowledge these employee rights.

Additional Damages

Lastly, in addition to reasonable attorneys' fees, an employee with a successful Workplace Transparency Act claim may now be entitled to "consequential damages," as well as fees, costs, and damages associated with "defending an action for breach of a confidentiality agreement pursuant to [the Workplace Transparency Act]."

Creation of the Family Neonatal Intensive Care Leave Act

Effective: June 1, 2026 | HB 2978

Under this bill, Illinois employers will be required to provide job-protected, unpaid leave for employees with a newborn child in a neonatal intensive care unit (NICU). Employees employed by an employer with 16 to 50 employees are entitled to up to 10 days of unpaid leave or the length of time the employee's child was a patient in the NICU—whichever is less. Employees employed by an employer with more than 50 employees may take up to 20 days of unpaid leave or the length of time the employee's child was a patient in the NICU, whichever is less. Leave may be taken continually or intermittently, in minimum increments of at least two hours. Employers have the authority to request verification of the NICU stay but may not require employees to reveal confidential medical information.

This leave will be in addition to any time already taken under the Family and Medical Leave Act, and employers cannot force employees to use paid time off instead. Additionally, health insurance benefits must continue during this leave period. Such leave is job-protected, and employers must reinstate the employee to the same or substantially similar job position following the conclusion of the leave.

In addition to civil or administrative actions for unpaid wages, employers found in violation of this act could face penalties of up to $5,000 per violation.

Amendment to the Employee Blood and Organ Donation Leave Act: Part-Time Employee Eligibility

Effective: January 1, 2026 | HB 1616

This bill amends eligibility for the Blood and Organ Donation Leave Act beginning January 1. It changes "an employee" to "any participating employee or part-time employee," clarifying that this act applies to both full-time and part-time employees. The act will now allow employees to use up to 10 days of leave within a 12-month period for organ donation services and adds clarification for part-time employee pay, stating that the employer shall calculate the daily average pay the part-time employee received during the last two months and compensate the employee with this average pay per leave day used.

Amendments to the Illinois Wage Payment and Collection Act: Strengthening Wage Theft and Unpaid Wages Enforcement and Penalty Provisions

Effective: August 1, 2025 | SB 2164

SB 2164 went into effect upon Governor Pritzker's signature on August 1, 2025. It updates the Illinois Wage Payment and Collection Act, expanding enforcement powers for the Illinois Department of Labor (IDOL), increasing penalties for wage violations and strengthening employee protections.

Final administrative decisions from IDOL requiring employers to pay owed wages, damages, fines, or fees related to wages now automatically become debts to the state if not paid within 35 days after judicial review or when the time to seek review expires. This debt can then be collected using any legal remedy, and IDOL's findings and orders will be enforceable in the same manner as any civil court judgment. This provision replaces prior language that required IDOL to file a petition against the employer before payment, therefore giving IDOL more streamlined authority to pursue recovery of amounts owed in connection with a wage claim.

The bill also increases penalties for employers for unpaid wages. The bill clarifies that, for a claim adjudicated with IDOL through an administrative hearing, the 5% monthly penalty will accrue for each month of unpaid amounts until the final decisions, when the amount becomes a debt owed to the state. Similarly, the bill clarifies that the 1% daily penalty ordered by IDOL will accrue for each day of delay in paying unpaid wages until the final order and decision of IDOL, when the wages and penalty become a debt owed to the state. The bill also increases nonwaivable administrative fees, which now range from $500 to $1,250—up from $250 to $1,000—depending on the amount owed.

Lastly, the newly enacted Section 20 clarifies how these updates affect past and future wage claims: Procedural changes within this bill will apply retroactively, while substantive changes will apply only moving forward. Importantly, the bill states that any changes to the remedies available under the Illinois Wage Payment and Collection Act are procedural in nature, meaning employers may be liable for increased penalties for historical violations of the act for up to 10 years, the applicable statute of limitations.

Renaming the Family Military Leave Act and Allowing Paid Leave for Military Funeral Honors

Effective: August 1, 2025 | SB 220

SB 220 went into effect upon Governor Pritzker's signature on August 1, 2025. It updates and expands the Family Military Leave Act, renaming it the "Military Leave Act" and adding new provisions for paid leave related to military funeral honors. The amended Military Leave Act only applies to employers with 51 or more employees. Qualifying employees are entitled to use up to eight hours of paid leave per calendar month, with a maximum of 40 hours per year, to participate in funeral honors.

To qualify for the new type of leave, employees must be trained to serve in a funeral honors detail and either (1) be an active or retired member of the U.S. Armed Forces or reserve components, including the Illinois National Guard, or (2) be an authorized provider or affiliated with an authorized provider such as a nonprofit. Qualified employees must give reasonable notice to the employer, and the employer is allowed to request confirmation of participation from the relevant veteran service organization or other official notice.

Importantly, employers must pay the participating employee at their regular rate of pay during such leave. However, employers are allowed to deny requests for military funeral honors leave if allowing such leave would reduce staffing in sensitive environments that would drop below safe or legal limits, such as nursing homes or 24/7 care facilities, except where a collective bargaining agreement applies.

Amendments to the Equal Pay Act: Removal of EEO-1 Filing Requirement and Clarification of Fringe Benefits

Effective: June 30, 2025 | HB 2488

HB 2488 went into effect upon Governor Pritzker's signature of the law on June 30, 2025. It expands the scope of businesses subject to the Equal Pay Act and now applies to any private employer with 100 or more employees in Illinois, regardless of EEO-1 filing status. Additionally, HB 2488 clarifies that the term "prevailing wage" means the hourly cash wages plus full journeyman annualized fringe benefits for training and apprenticeship programs registered with the U.S. Department of Labor.

Creation of the Workers' Rights and Worker Safety Act

Effective: August 14, 2025 | SB 1976

SB 1976, known as the Illinois Workers' Rights and Worker Safety Act, became effective upon Governor Pritzker's signature on August 14, 2025. The Workers' Rights and Worker Safety Act prohibits Illinois state agencies from amending or revising their rules in a way that is less stringent than requirements under federal wage-and-hour or federal coal mine safety laws, as such laws existed as of April 28, 2025 (referred to collectively as the 2025 federal laws). Further, if any 2025 federal laws are repealed, revoked, or amended in any manner that results in the less stringent federal protections of workers' rights or worker safety—including through any interpretative guidance—then the applicable state agency is required to promptly adopt a rule that adopts the standard equivalent to the 2025 federal laws. State agencies are also empowered to establish more stringent standards than those implemented in the 2025 federal laws. To ensure compliance with the bill's requirements, state agencies must submit a report to the Illinois clerk of the House of Representatives and the secretary of the Senate describing the agency's actions and efforts to implement and enforce the bill.

Amendment to the Illinois Human Rights Act: Flexible Fact-Finding Conferences and New Civil Penalties

Effective: January 1, 2026 | SB 2487

Beginning January 1, significant changes to the Illinois Human Rights Act will go into effect. First, the Illinois Department of Human Rights now has discretion to conduct a fact-finding conference and will not be required to conduct one on every matter. However, the department is required to conduct the conference if both parties submit a request within 90 days of the date the charge is filed. Any request must include the party's written agreement to a 120-day extension of the department's deadline for its report.

SB 2487's new civil penalty provision includes a scale based on the respondent's prior history of violations. A penalty of up to $16,000 may be imposed for a first violation; up to $42,500 if the respondent had one prior violation within the last five years; and up to $70,000 if the respondent had two or more prior violations within the last seven years. Importantly, if the same person committed prior and current violations, the higher penalties may apply regardless of the time between the offenses.

These changes apply to all charges pending or filed on or after January 1, 2026.

Employee Protection Law: Use of Employer Devices in Cases of Domestic and Sexual Violence

Effective: January 1, 2026 | HB 1278

HB 1278, which will add a new provision to the Victims' Economic Security and Safety Act starting January 1, intends to protect employees who use employer-issued electronic devices in the context of domestic violence or any crime of violence. The bill prohibits employers from taking adverse actions against an employee who uses a work-issued device to document incidents of domestic violence, sexual violence, gender violence, or other crimes of violence committed against themselves or a family/household member.

The bill further prohibits employers from revoking the employer-issued device solely because it was used to document domestic violence incidents. Employers must also grant employees access to any photos, videos, audio recordings, or digital documents stored on employer-issued devices that relate to the employee's domestic violence incident.

The bill does not prohibit an employer from complying with investigations or court orders involving the employer-issued device and its contents. Additionally, the bill includes a specific disclaimer against construing it to relieve employees of any reasonable employment policies or the performance of the essential functions of employment.

Amendments to the Prevailing Wage Act: Expanding "Public Works" Definition and Imposing New Payroll Penalties

Effective: June 30, 2025 | SB 1344

Governor Pritzker signed SB 1344 into law on June 30, 2025, and it went into effect immediately. It significantly expands enforcement provisions of the Prevailing Wage Act and broadens the definition of "public works." Employers in the construction and inspection industries should take note, especially those working on municipal sewer systems.

SB 1344 adds sewer inspection projects using closed-circuit television for identifying issues in a sewer system to the definition of "public works."

The bill also introduces additional civil penalty provisions to the Prevailing Wage Act for failing to file certified payrolls for any public work projects. The first offense may be up to $1,000 and can rise to $2,000 for a second or subsequent offense within five years after the first offense. Employers found in violation may request an administrative hearing within 10 days of receiving notice of the offense. While the contractor or subcontractor may submit mitigating evidence, such as a technical issue when trying to submit payrolls, the bill clearly states that the lack of knowledge of the payroll filing requirement will not be considered as mitigating evidence. If a civil penalty is not paid within 35 days of a final administrative decision or is not timely challenged, the attorney general may step in to enforce the penalty in a circuit court.

Amendment to the Prevailing Wage Act: Further Expanding "Public Works" Definition

Effective: August 14, 2025 | HB 1189

HB 1189 became effective upon Governor Pritzker's signature on August 14, 2025. It changes the Prevailing Wage Act by expanding the definition of "public works" to include all federal construction projects administered or controlled by a public body if the prevailing wage rate for the project is equal to or higher than the U.S. secretary of labor's prevailing wage determination for that kind of work in the same location.

Amendment to the Child Care Act

Effective: January 1, 2026 | HB 3439

Governor Pritzker signed HB 3439 into law on August 15, 2025. The bill amends the Child Care Act of 1969 by requiring that an employee or volunteer of a day care center, day care home, or group day care home undergo a criminal background investigation every five years. The bill also establishes a background check program administered by the Illinois Department of Early Childhood in which day care centers, day care homes, and group day care homes may hire an employee or volunteer on a probationary basis after receiving a qualifying result as determined by the Department of Early Childhood.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.