Intro to Illinois Labor Laws

Starting on January 1, 2026, Illinois employers will now be required to provide employees with a formal notice if artificial intelligence (AI) is used for employment purposes, such as recruiting, discipline, or selection for training. Under these rules, it is a civil rights violation to use AI in a way that discriminates based on protected classes or zip codes. Required notifications must include the name of the AI product, the impacted decision, its purpose, the data it collects, targeted job positions, and contact details for inquiries.

While the Illinois Department of Human Rights is expected to provide further clarity, employers, including those using tools from third-party vendors, must now ensure their systems do not result in discriminatory outcomes or results. Employers should review their AI-driven processes and prepare to integrate these detailed disclosures into hiring workflows and employee handbooks.

Illinois has enacted the Family Neonatal Intensive Care Leave Act, which will require employers with 16 or more employees to provide unpaid, job-protected leave for employees with a child in a Neonatal Intensive Care Unit (NICU). Employers with 16–50 employees must provide up to 10 days of leave, while those with 51 or more employees must provide up to 20 days. Employees may take the leave continuously or intermittently (with a minimum increment of two hours), and those eligible for leave under FMLA must use their FMLA time first. Employers can request basic verification of the NICU stay. Additionally, while employees may choose to use paid time off during this leave, employers cannot require it. We encourage employers to review and revise their leave policies to reflect this new law.

Starting this summer, Illinois is granting the Department of Labor enhanced authority to enforce wage payment orders directly against employers, bypassing the need to petition a circuit court. The new bill, SB 2164, applies to businesses that have been ordered by the Department of Labor to pay owed wages to an employee.

Illinois has amended the Nursing Mothers in the Workplace Act to clarify that paid lactation breaks must be compensated at an employee’s regular rate of pay. This update applies to all employers with six or more employees and prohibits employers from requiring the use of other paid leave to cover this time. Under the new requirements, employers are required to pay employees during these breaks unless it causes "undue hardship" as defined by the Illinois Human Rights Act. Employers should review their lactation policies and compensation practices to align with these new requirements.

Effective January 1, 2026, Illinois employers must comply with expanded obligations under the amended Workplace Transparency Act (WTA). This law grants greater protections to current, former, and prospective employees concerning the execution of their employment-related agreements. The amended WTA requires confidentiality clauses in separation agreements to be supported by separate payment distinct from the release of claims. It also expands restrictions on using prohibited unilateral terms in employment or continued employment agreements. Employers should review all employment-related agreements and consult legal counsel for compliance with these amendments.

Illinois will now require employers with 51 or more employees to provide up to 40 hours of paid leave for employees who serve on a military funeral honors detail. This new leave is in addition to any other paid leave an employer may offer. To be eligible, an employee must have worked for the same employer for at least 12 months and for a minimum of 1,250 hours in the previous year. The leave can be used for up to 8 hours per month, with a maximum of 40 hours per year. Employers should review and revise their leave policies to ensure compliance with these requirements.