Upcoming Changes to Illinois Employment Law in 2026

Illinois employers face several new employment law updates in 2026. Here’s a concise overview of key changes and their implications:

1. Illinois Right to Privacy in the Workplace Act

Effective: Immediately (Dec. 12, 2025)

Employers cannot take adverse action based solely on federal or vendor notices about discrepancies in employee identification documents.
Employees must be notified in person or via hand delivery within 5 days.
Nonprofits and labor organizations can sue if there’s a reasonable belief of violations.
Penalties include:
- $100–$1,000 per violation
- Civil penalties of $10,000
- Reinstatement, back pay, and damages
Multiple violations in three years: $1,000–$5,000 per violation.

Action: Employers should review procedures for handling federal or vendor notices concerning employee IDs and update compliance policies.

2. Illinois Human Rights Act (IHRA)

Effective: Immediately

Administrative law judges can impose civil penalties for civil rights violations:
- Up to $16,000 per act per aggrieved party
- Up to $42,500 if one prior violation within five years
- Up to $70,000 if two or more prior violations
Applies to natural persons regardless of timing of violations.

Action: Employers should strengthen anti-discrimination policies and maintain records to demonstrate compliance.

3. Illinois Workplace Transparency Act (WTA)

Effective: Immediately

Protects employees’ rights to report unlawful employment practices.
Prohibits agreements that restrict concerted activity or limit employees’ ability to make claims.
Settlement/termination agreements with confidentiality clauses must include separate consideration.
Employers may face liability for consequential damages in addition to attorneys’ fees.

Action: Review employment contracts, settlement agreements, and confidentiality clauses to ensure WTA compliance.

4. Family Neonatal Intensive Care Leave Act (Neonatal Care Act)

Effective: June 1, 2026

Applies to employers with 16+ employees:
- 16–50 employees: 10 days unpaid leave
- 51+ employees: 20 days unpaid leave
Leave can be continuous or intermittent, in minimum two-hour increments.
Employees may take leave in addition to FMLA; paid leave cannot be forced instead.
Documentation may be requested but must comply with HIPAA and other laws.
Retaliation is prohibited; reinstatement required.

Action: Update employee handbooks and leave policies to reflect new NICU leave requirements.

5. Nursing Mothers in the Workplace Act

Effective: Immediately

Employers must provide paid break time for employees to express milk.
Paid leave cannot be deducted or require use of other leave, unless it creates undue hardship.

Action: Update lactation break policies and ensure proper compensation procedures.

6. Victims’ Economic Security and Safety Act (VESSA)

Effective: Immediately

Employers cannot discriminate if employees use employer-provided devices to document domestic, sexual, or gender violence.
Employers must provide access to devices used for such purposes, following reasonable policies.

Action: Review company device policies to ensure compliance with VESSA protections.

7. Military Leave Act (formerly Family Military Leave Act)

Effective: August 1, 2025

Employers with 51+ employees must grant 8 hours of paid leave per month (40 hours/year) for funeral honors for veterans.
Eligible employees: 12+ months of employment and 1,250+ hours worked in the last 12 months.
Employees must give reasonable notice and provide supporting documentation.

Action: Update military leave policies and ensure eligible employees are aware of their rights.

Summary:
Illinois employers should review and update employee handbooks, contracts, leave policies, and compliance procedures to align with these 2026 employment law changes. Prioritizing training and communication will help reduce liability and ensure smooth implementation.

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