Intro to Illinois Labor Laws

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.

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.

Starting January 1, 2025, Illinois employers with 15 or more employees must include pay ranges and benefits in all job postings for roles based in Illinois or reporting to an Illinois office or manager. Additionally, employers must notify current employees of promotion opportunities within 14 days of any external job posting and maintain records of job posting information for five years. Failure to comply with the requirements could result in fines. To prepare, employers should review current job postings, policies, and procedures with legal counsel to ensure compliance.

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.

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.

Starting January 1, 2025, Illinois employers using E-Verify must follow new rules under the state’s Right to Privacy in the Workplace Act. Employers cannot require additional employment verification beyond federal law, and they must notify employees within strict time frames if any discrepancies in work authorization are found. Employers also need to inform employees of any Form I-9 inspections and allow them to have representation in work authorization discussions. Non-compliance can be subject to fines for each violation. Illinois employers should review and update their E-Verify process to ensure compliance.