Watch Your Six in 2026: Six changes to Illinois law employers should know

Each new year brings changes to Illinois employment laws, and 2026 will be no different. Here are six key employment law changes that Illinois employers should be aware of. All took effect on January 1.

No. 1:  Illinois Workplace Transparency Act Amendment (Public Act 104-0320)

The Illinois Workplace Transparency Act, which prohibits employers from using employment agreements to restrict employees from reporting unlawful employment practices, now includes wage and hour violations, safety concerns, and other regulatory matters. The updates also reinforce employees’ rights to engage in concerted activity to address work-related issues. This means employers cannot use employment agreements that restrict employees from acting together for mutual aid or protection, collective bargaining, union organizing, or discussing wages, hours, and working conditions.

The amendments also restrict certain provisions within employment agreements, such as applying non-Illinois law to an Illinois employee’s claim, or requiring employee claims to be adjudicated in a venue outside Illinois, unless those agreements comply with other legal requirements.

Significantly, for settlement and termination agreements entered on or after January 1, employees must receive separate consideration for any promises of confidentiality related to protected activities. “Consideration” is something of value that a party receives for entering into a contract. In the employment law context, this is usually a monetary payment for the employee, and a release of claims and other promises for the employer. The January 1 amendment means that an employee must be paid for the agreement to maintain confidentiality in addition to any payment in exchange for the release of claims. 

To address all of these changes, employers should review and update their employment agreements, including confidentiality, non-compete and non-solicitation, severance, and settlement agreements to ensure the agreements are enforceable and do not violate the amendments to the law. If an employer is not in compliance with the law, employees can recover damages and attorneys’ fees.

No. 2:  Illinois Human Rights Act Amendment (Public Act 104-0076)

Effective January 1, factfinding conferences are no longer mandatory for complaints before the Illinois Department of Human Rights. Investigators with the IDHR may hold a factfinding conference if both the employer and the employee agree in writing within 90 days of the employer’s receiving notice of the complaint.

IDHR factfinding conferences allow the complaining employee and employer representatives to discuss the facts of the complaint before an IDHR investigator. Now employers will need to decide quickly after receiving the complaint whether they would like to participate, which is a strategic decision based on the unique circumstances of the complaint.

No. 3:  Artificial Intelligence Employment Law (Public Act 103-0804)

The Illinois Human Rights Act has been amended to address the use of artificial intelligence by employers. The amendment prohibits employers from using AI in employment decisions if the use results in discrimination based on protected characteristics, including age, race, sex, religion, sexual orientation, marital status, color, national origin, work authorization status, military status, or disability. Employers are required to notify applicants and employees when AI is used, the specific purposes of the AI, and any characteristics that the AI assesses.

The law defines “AI” as a machine-based system that uses inputs to generate outputs such as predictions, content, recommendations, or decisions influencing physical or virtual environments. The amendment applies to a wide range of employment decisions, including recruitment, hiring, promotion, retention, selection for training, discharge, discipline, tenure, and all other decisions related to the terms, privileges, or conditions of employment.

Employers must review their technology to determine whether it falls within the amendment’s broad definition of “AI” and whether the technology is being used to make employment decisions. If so, employers should ensure that their use of AI is not discriminating based on protected characteristics and provide the required notifications to applicants and employees. It will be critical for employers who use AI to provide training to employees on the proper use of the technology and how to assess for inadvertent discrimination.

No. 4: Nursing Mothers in the Workplace Act Amendment (Public Act 104-0076)

A few updates to the Illinois Nursing Mothers in the Workplace Act took effect on January 1. Already, employers must provide paid breaks for nursing mothers. The amendments clarify that employers cannot use employees’ paid time off or reduce employees’ compensation for these breaks. This law does not specify how the length or number of breaks that must be provided, but states that the “employer shall provide reasonable break time . . . each time the employee has the need to express milk for one year after the child’s birth.”  

To comply with this law, employers should post the required notifications in designated working areas or where other employment notifications are posted. They should also review and update their policies as needed and provide training to managers on these requirements.

No. 5:  Victims’ Economic Security and Safety Act Amendment (Public Act 104-0171)

The longstanding Illinois Victims’ Economic Security and Safety Act provides employees who are victims of violence with unpaid leave in certain circumstances. The new amendments to VESSA require employers to allow employee access to any photos, voice or video recordings, or other digital data stored on an employer-issued device relating to acts of violence against the employee, or against a family or household member of the employee. Additionally, VESSA now states that employers cannot refuse to hire, discriminate against, or retaliate against an employee because the employee used employer-issued equipment to record acts of violence committed against the employee or a family or household member of the employee.

As a practical matter, this issue may arise when an employee requests access to data on the employee’s work computer or phone that relates to acts of violence. Employers should review and update their policies, and train managers on how to respond to these types of requests. Employers may also want to review how their proprietary or confidential data is stored on company devices to ensure that the data is not compromised as a result of a VESSA request.

No. 6:  Employee Blood and Organ Donation Leave Act Amendment (Public Act 104-0193)

Illinois employers with more than 50 employees have already been required to provide full-time employees with time off for blood or organ donations. As of January 1, they are now required to do the same for part-time employees. Employers must provide 1 hour of paid leave every 56 days to eligible employees who are donating blood, and up to 10 days of leave per 12-month period to eligible employees who are donating organs.

It is not clear whether the organ donation leave is paid or unpaid, but the Illinois Department of Labor may provide additional guidance soon, so employers should watch for developments. In light of these changes, employers should also update their policies and train managers on these changes.  

The employment attorneys at Constangy are available to answer questions and further assist employers in complying with these changes and other laws affecting employees.