With 2025 quickly approaching, Illinois employers should be aware of new changes in Illinois state employment laws. There are a number of Illinois employment laws and amendments that have either recently gone into effect or are set to go into effect January 1, 2025. This post is a summary of the new laws that went into effect or will be in effect in 2025 to help Illinois employers be ready to comply with all the new changes.
Amendment to Illinois Equal Pay Act
Beginning on January 1, 2025, under Illinois House Bill (HB) 3129, Illinois employers with 15 or more employees are required to disclose their pay scales and benefits in all job postings. A job posting now requires the posting to include the following for each open position: (i) a wage or salary (or a wage or salary range), and (ii) a description of benefits and other compensation such as bonuses and stock options. If an employer includes a range, it must be a “good faith range” that references existing pay ranges or the actual pay range paid to other employees in equivalent positions. This disclosure requirement can be complied with by providing a link to the employer’s website.
In addition to the requirements above, an Illinois employer must also announce, post, or otherwise make known all opportunities for promotion to all current employees no later than 14 calendar days after the employer makes an external job posting for an existing position.
Changes to E-Verify Authorization in Illinois
On January 1, 2025, due to amendments under the Illinois Right to Privacy Act, Illinois employers enrolled in the federal E-Verify work authorization program and system will be subject to additional obligations and notice requirements. While E-Verify is not mandatory in the state of Illinois, employers may still choose to voluntarily use the E-Verify program.
E-Verify is used by employers to confirm that prospective hires are eligible to work in the United States. Recent amendments to the Illinois Privacy Act provide new obligations to employers in the event of an E-Verify “no match.” If a discrepancy exists due to a “no match” in an employee’s employment verification information, then an Illinois employer using E-Verify is obligated to provide the employee with certain notices, including providing: (i) the employee with the specific document(s) that the employer deems to be deficient, the reason for deficiency, and upon request by the employee, the employer must give the employee the original document forming the basis for the deficiency within seven business days, and would require employers to give employees time to correct documentation discrepancies; (ii) instructions on how the employee may correct the alleged deficiencies, if required to do so by law; (iii) an explanation of the employee’s right to have representation present during related meetings, discussions, or proceedings with the employer, if allowed by a memorandum of understanding concerning the federal E-Verify system; and (iv) an explanation of any other rights the employee may have in connection with the alleged discrepancies.
Illinois Pay Stub and Retention Access
Beginning on January 1, 2025, via Illinois House Bill (HB) 3763, Illinois employers must comply with new pay stub and retention access requirements including (i) maintaining a copy of employee pay stubs for at least three years after the date of payment, regardless of whether an employee’s employment ends during that period; (ii) providing an employee a copy of the employee’s pay stubs within 21 days of the request; employers are not required to grant an employee’s request for pay stubs more than twice in a 12-month period; and (iii) providing an employee a copy of a former employee’s previous pay stubs within 21 days of the former employee’s request (the employee can decide on the form—physical or electronic).
Under the statute, an Illinois employer is not required to grant a former employee’s request more than twice in a 12-month period or more than one year after the date of separation. If an Illinois employer furnishes electronic pay stubs in a manner that a former employee cannot access for at least a full year after separation, then upon an employee’s separation from employment and by the end of the outgoing employee’s final pay period, the employer must offer to provide the outgoing employee with a record of all of their pay stubs from the year preceding the date of separation. The employer must record the date on which this offer was made and the outgoing employee’s response.
Requests must be made to a person responsible for maintaining the employer’s payroll, including the employer’s HR or payroll department, the employee’s supervisor or department manager, or an individual designated in the employer’s written policy.
Employers that violate these pay stub and retention access requirements can be subject to a civil penalty of up to $500 per violation.
Amendments to the Illinois Whistleblower Act
Beginning on January 1, 2025, via Illinois House Bill (HB) 5561, various passed amendments will expand the Illinois Whistleblower Act’s coverage. Current Illinois whistleblower law prohibits employers from taking adverse actions against employees who report their employer’s unlawful activity (or reasonably believed to be unlawful). The new amendment to the Illinois Whistleblower Act adds to these prohibitions by further prohibiting employers from retaliating against employees who disclose or threaten to disclose such information to any supervisor, principal officer, board member, or supervisor in an organization that has a contractual relationship with the employer.
Employers are also prohibited from retaliating against employees who report information regarding employer activities they reasonably believe pose a substantial and specific danger to employees, public health, or safety. “Adverse action” has also been expanded to include any action that “could dissuade a reasonable worker from disclosing or threatening to disclose” information protected by the law.
The Worker Freedom of Speech Act and Mandatory Employer-Sponsored Meetings (Captive Audience Ban)
Effective January 1, 2025, Illinois Senate Bill (SB) 3649 created the “Worker Freedom of Speech Act” and provides that an employer or their agent may not discharge, discipline, or otherwise penalize an employee for declining to attend or participate in an employer-sponsored meeting that relates to “Political Matters” or “Religious Matters” including “the decision to join or support any… labor organization.”
“Political Matters” include “[M]atters relating to elections for political office, political parties, proposals to change legislation, proposals to change regulations, proposals to change public policy, and the decision to join or support any political party or political, civic, community, fraternal, or labor organization.”
“Religious Matters” include “[M]atters relating to religious belief, affiliation, and practice and the decision to join or support any religious organization or association.”
The statute also requires employers to post notices informing employees of their rights under the statute within 30 days after it takes effect.
Aggrieved employees may bring a civil action no more than one year after the date of the alleged violation, and available remedies include injunctive relief, reinstatement, back pay, reinstatement of any employee benefits, and attorney’s fees.
New Illinois Child Labor Laws
Effective January 1, 2025, Illinois employers have new requirements to comply with when employing minors.
Illinois Senate Bill (SB) 3646 repeals and replaces the state’s child labor law with the Child Labor Law of 2024. The Child Labor Law of 2024 covers minors under 16 years of age and is intended to provide “the greatest protection of a minor’s well-being.” The requirements of the new law are as follows: (i) requires employers to obtain an employment certificate authorizing a minor’s work and maintain records on the premises; (ii) specifies allowable work hours and times and (ii) states that minors (with certain exceptions) generally cannot work: (1) more than 18 hours during a week when school is in session; (2) more than 40 hours during a week when school is not in session; (3) more than eight hours in any single 24-hour period; (4) between 7 p.m. and 7 a.m. from Labor Day until June 1 or between 9 p.m. and 7 a.m. from June 1 until Labor Day; and (5) more than three hours per day or more than eight hours total of work and school hours on days when school is in session.
The statute also requires supervision of minors at all times by an adult 21 years or older and provides that minors cannot work for more than five hours continuously without at least a 30-minute meal period.
Illinois employers are required to post a notice summarizing requirements and provides for civil and criminal penalties for violations.
New Illinois Requirements Regarding Personnel Records
Effective January 1, 2025, the Illinois Personnel Record Review Act (“PRRA”) will expand Illinois employee rights and create new obligations on Illinois employers.
The amended PRRA gives employees broader access to their personnel records, with employees now able to make requests to inspect their records up to four times annually (up from two requests previously required under Illinois law). The definition of personnel records has also been expanded to include electronic communications about an employee’s qualifications.
Employers also must now maintain personnel records for a minimum of five years (up from three years previously required under Illinois law) following an employee’s separation. Employers must also provide a written notification to employees within 14 days of when disciplinary actions or performance evaluations are added to their personnel file.
To request an inspection of their personnel records, employees must make a written request to their employer identifying what personnel records they are requesting and specifying the purpose of the inspection (inspect, copy, etc.). Employers must produce the requested documents within seven working days after receiving the request.
The amendments to the PRRA also include stronger enforcement mechanisms, such as a civil penalty of up to $2,500 per violation and attorney fee recovery for successful plaintiffs.
Amendments to the Illinois Human Rights Act for Protected Characteristics
Beginning on January 1, 2025, Illinois House Bills 2161, 4867, and 3310 amend several aspects of the Illinois Human Rights Act related to protected characteristics.
Reproductive Health: Illinois employers must not discriminate against an employee for actual or perceived decisions on reproductive health. “Reproductive Health Decisions” are defined as “a person’s decisions regarding the person’s use of contraception; fertility or sterilization care; assisted reproductive technologies; miscarriage management care; healthcare related to the continuation or termination of pregnancy; or prenatal, intranatal, or postnatal care.”
Family Responsibilities: Illinois employers are prohibited from discriminating against an employee or prospective employee based upon “family responsibilities.” “Family responsibilities” means an employee’s actual or perceived provision of personal care to a family member. “Personal care” includes activities to ensure that a covered family member’s basic medical, hygiene, nutritional, or safety needs are met or to provide transportation to medical appointments for a covered family member who is unable to meet those needs themself. It also includes being physically present to provide emotional support to a covered family member with a serious health condition who is receiving inpatient or home care.
Illinois employers are prohibited from basing employment decisions on assumptions about how an employee will conduct themselves based on their protective status. However, the new amendment does not create an accommodation obligation or require an employer to modify its reasonable rules or policies related to leave, scheduling, productivity, attendance, absenteeism, timeliness, work performance, etc.
Time to File Complaint and Penalties: Complainants will now have two years (extended from 300 calendar days) after the date that any alleged civil rights violation has been committed to file a charge with the Illinois Department of Human Rights.
Bonus: Looking Ahead to 2026
Artificial Intelligence in Employment
Beginning on January 1, 2026, House Bill 3773 will amend part of the Illinois Human Rights Act to prohibit employers from using artificial intelligence (“AI”) for many employment decisions, including “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment,” if such use discriminates employees on the basis of a protected class.
The statute amendment defines AI as a “machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.” The statute amendment also makes it a civil rights violation for failing to notify employees of the employer’s use of AI and using zip codes as a proxy for protected classes. The statute does not provide specifics on how notice to employees should be given. Dykema attorneys will monitor for additional guidance from the Illinois Department of Human Rights.
With the enactment, Illinois will become only the second state (along with Colorado) to address algorithmic discrimination in employment decisions.
To learn more about any of the Illinois state law topics above and how it impacts your business or any other general questions, please contact the authors of this article or your Dykema relationship attorney.