Illinois employers are facing significant changes to state employment law as 2026 approaches. Governor J.B. Pritzker recently signed over 200 bills into law, with more than a dozen directly affecting workplace policies, employee rights, and employer obligations. Most of these changes take effect on January 1, 2026.
Understanding these new requirements now—and updating your policies accordingly—is essential to maintaining compliance and avoiding costly penalties.
- What's Changing in Illinois Employment Law
- Why This Matters: The Cost of Non-Compliance
- Illinois Workplace Transparency Act: Significant Expansion
- Family Neonatal Intensive Care Leave Act (New Law – Effective June 1, 2026)
- Nursing Mothers in the Workplace Act: Paid Break Requirement
- Victims' Economic Safety and Security Act (VESSA): Employer-Issued Device Protections
- Illinois Human Rights Act: Artificial Intelligence Disclosure Requirements
- Military Leave Act: Expanded for Funeral Honors Duty
- Other Significant Illinois Employment Law Changes for 2026
- Workplace Posting Requirements: A Critical Compliance Obligation
- Frequently Asked Questions
- Your 2026 Illinois Employment Law Compliance Checklist
- Resources & Next Steps
- Important Legal Disclaimers
- Sources and Additional Reading
What’s Changing in Illinois Employment Law
According to employment law firms Ogletree Deakins, Quarles & Brady, and Duane Morris, the 2026 legislative session has produced some of the most significant expansions of employee protections in recent years.
Quick Reference: 2026 Illinois Employment Law Changes
| Law Change | Effective Date | Who It Affects | Key Action Required |
|---|---|---|---|
| IWTA Amendments | January 1, 2026 | All employers | Audit employment agreements with counsel |
| NICU Leave | June 1, 2026 | Employers with 16+ employees | Update leave policies and payroll systems |
| Paid Lactation Breaks | January 1, 2026 | All employers | Update payroll to compensate lactation breaks |
| VESSA Device Protections | January 1, 2026 | Employers issuing devices | Post notice, update device policies |
| AI Disclosure Requirements | January 1, 2026 | Employers using AI in decisions | Notify employees, prevent discrimination |
| Military Funeral Leave | January 1, 2026 | Employers with 51+ employees | Add paid leave for funeral honors duty |
| Blood/Organ Donation Leave | January 1, 2026 | Employers with part-time staff | Extend leave to part-time employees |
The changes fall into several categories:
- Expanded leave entitlements
- Stricter requirements for employment agreements
- Enhanced protections for victims of violence
- New obligations related to artificial intelligence use
- Updated wage and hour requirements
What Illinois Employment Laws Are Changing in 2026?
Illinois is implementing major workplace law updates in 2026, including expanded protections under the Illinois Workplace Transparency Act, new paid leave for NICU parents (up to 20 days), mandatory paid lactation breaks, protections for employees using employer devices to document violence, AI disclosure requirements for hiring and promotion decisions, and expanded military leave for funeral honors. Most changes take effect January 1, 2026, with NICU leave beginning June 1, 2026.
Why This Matters: The Cost of Non-Compliance
Before diving into the specific law changes, Illinois employers should understand the financial and legal risks of failing to update policies.
Direct Financial Penalties
Workplace Posting Violations:
- OSHA violations: Up to $16,000+ per violation
- FLSA violations: $2,500+ per violation
- EPPA violations: $26,000+ per violation
Employment Agreement Violations:
- IWTA violations result in unenforceable employment agreements
- Loss of key protections in employee disputes
- Potential invalidation of confidentiality and non-compete provisions
Leave Law Violations:
- State penalties from Illinois Department of Labor
- Potential discrimination claims if leave is denied
- Individual employee lawsuits with attorney fee provisions
Hidden Costs
Beyond direct penalties, non-compliance creates:
- Extended liability windows: Improperly notified employees may have longer statutes of limitation for claims
- Increased litigation exposure: Employees not informed of rights are more likely to file complaints
- Reputation damage: Public violations can affect recruitment and customer relationships
- Loss of legal defenses: Non-compliant agreements may be void, eliminating key employer protections
Bottom line: The cost of policy updates and legal review now is far less than the cost of violations later.
Illinois Workplace Transparency Act: Significant Expansion
The Illinois Workplace Transparency Act (IWTA) has been substantially amended, broadening both its scope and its restrictions on employment agreements. This represents the most significant change for most employers.
What “Unlawful Employment Practices” Now Includes
Previous Coverage: The IWTA previously defined “unlawful employment practices” narrowly as discrimination, harassment, or retaliation claims.
New Coverage (Effective January 1, 2026): The Act now encompasses ANY practice made unlawful under:
- Illinois Human Rights Act
- Title VII of the Civil Rights Act of 1964
- Any other state or federal law governing employment
- Laws enforced by the EEOC, DOL, OSHA, NLRB, Illinois Department of Human Rights, Illinois Department of Labor, or Illinois Labor Relations Board
This dramatically expands the types of workplace issues covered by the Act’s protections, now including wage and hour violations, safety complaints, unionization activities, and virtually any employment-related legal claim.
Prohibited Provisions in Employment Agreements
Employers can no longer include unilateral provisions in employment agreements that:
- Restrict reporting or discussion of unlawful employment practices
- Prevent concerted activity to address work-related issues (protecting rights similar to those under the National Labor Relations Act)
- Shorten statutes of limitations beyond what Illinois or federal law provides
- Require non-Illinois venue for adjudicating Illinois employee claims
- Apply non-Illinois law to Illinois employee disputes
Any such provisions are now considered against public policy and void.
Industry Impact – Technology & Professional Services: Tech companies and professional service firms commonly use standardized national employment agreements. If your contracts include choice-of-law provisions (e.g., “governed by Delaware law”) or forum selection clauses for Illinois employees, these provisions are now unenforceable and must be revised.
New Requirements for Severance and Settlement Agreements
This is where the IWTA changes create the most complexity for employers. Confidentiality provisions in separation or severance agreements now require:
- Separate consideration beyond what’s provided for the general release of claims
- Actual bargaining between the parties (not just employer-imposed terms)
- Written acknowledgment of specific employee rights, including the right to:
- Report allegations to government agencies
- Participate in proceedings related to unlawful practices
- Receive confidential legal advice
- Engage in concerted activity to address workplace issues
- Make truthful statements required by law
Real-World Example: What This Means for Your Severance Agreements
OLD APPROACH (Non-Compliant After January 1, 2026):
“Employee agrees not to discuss the terms of this agreement, the circumstances of separation, or any matters related to employment with Company with anyone except Employee’s spouse and attorney.”
NEW COMPLIANT APPROACH:
“Employee may discuss this agreement and the circumstances of separation, except for the following specifically identified confidential business information: [list specific trade secrets, proprietary information, or confidential business strategies].
Employee specifically retains the right to:
- Report potential violations to government agencies including EEOC, DOL, IDOL, and NLRB
- Participate in investigations or proceedings conducted by government agencies
- Discuss working conditions with former colleagues
- Receive confidential legal advice from an attorney
- Make truthful statements as required by law or legal process
This confidentiality provision is supported by separate consideration of $[specific amount] beyond the general release of claims. The parties have negotiated the terms of this provision, and Employee has been given [number] days to review this agreement and consult with an attorney.”
Critical Employer Action Required
Review with employment counsel before January 1, 2026:
- All employment agreement templates
- Offer letters containing restrictive provisions
- Confidentiality and non-disclosure agreements
- Separation agreement templates
- Severance package standard language
- Employee handbook provisions related to confidentiality
The cost of legal review now is far less than defending unenforceable agreements or facing IWTA violation claims later.
Family Neonatal Intensive Care Leave Act (New Law – Effective June 1, 2026)
Illinois has created a new category of protected leave specifically for parents whose newborns require neonatal intensive care unit (NICU) treatment. This addresses a significant gap in existing family leave laws.
Who Must Provide Leave
Employers with 16-50 employees: Must provide up to 10 days of unpaid leave
Employers with 51+ employees: Must provide up to 20 days of unpaid leave
Key Provisions
Eligibility: Employees whose newborn child is a patient in a neonatal intensive care unit
Leave Duration: Covers the period of the child’s NICU stay, up to the maximum days allowed based on employer size
How Leave Can Be Taken: Continuously or intermittently in minimum increments of 2 hours
Relationship to FMLA: This leave is in addition to Family and Medical Leave Act entitlements—it does not run concurrently with FMLA leave. This means eligible employees could potentially take:
- Up to 20 days of NICU leave (for employers with 51+ employees), PLUS
- Up to 12 weeks of FMLA leave for the birth and care of a newborn
Job Protection: Similar protections to those provided under FMLA, including restoration to the same or equivalent position
Industry Impact – Healthcare & Hourly Workforce Employers: Healthcare employers, retailers, and hospitality businesses with shift-based scheduling should prepare for the operational challenges of intermittent leave in 2-hour increments. Consider how you’ll handle coverage, especially during the critical newborn period when NICU leave and FMLA may overlap.
Employer Compliance Obligations
Before June 1, 2026:
- Update employee leave policies to include NICU leave as a separate category
- Train HR staff and managers on eligibility requirements and request procedures
- Develop clear procedures for requesting and approving NICU leave
- Ensure payroll systems can track this separate leave category distinct from FMLA
- Update employee handbooks and new hire materials
- Prepare required workplace notices
Operational Considerations:
- How will you handle intermittent leave requests with minimum 2-hour increments?
- What documentation will you require (hospital verification, physician statement)?
- How will you track this leave separately from FMLA?
- Do you need to update your HRIS system to accommodate this new leave type?
Nursing Mothers in the Workplace Act: Paid Break Requirement
Illinois has strengthened protections for lactating employees by requiring that break time for expressing breast milk must now be compensated. This represents a significant change from the previous unpaid break standard.
What Changed
Previous Requirement: Reasonable unpaid break time for lactation
New Requirement (Effective January 1, 2026): Reasonable break time compensated at the employee’s regular rate of pay
What Employers Cannot Do
- Require employees to use paid leave (vacation, sick time, or PTO) for lactation breaks
- Reduce employee compensation in any way during lactation breaks
- Treat lactation breaks as unpaid time
- Discipline employees for taking reasonable lactation breaks
What Employers May Do
- Require lactation breaks to run concurrently with existing paid break time
- Establish reasonable policies defining what constitutes “reasonable” break time (typically 15-20 minutes per pumping session, 2-3 times per 8-hour shift)
- Maintain existing lactation room requirements and privacy standards
Critical Payroll System Update
This change requires immediate payroll configuration updates. Your system must:
- Properly classify lactation breaks as paid time
- Track lactation break time separately for compliance reporting
- Ensure lactation breaks are compensated at regular rate (including any shift differentials or premiums)
- Not automatically deduct time for lactation breaks as unpaid meal periods
Action Required: Update lactation accommodation policies and ensure payroll systems properly compensate lactation breaks before January 1, 2026. Test your payroll system with sample scenarios to verify correct payment.
Industry Impact – Manufacturing & Retail: Businesses with hourly employees and timeclock systems must ensure lactation breaks are properly coded as paid time. Review your timekeeping procedures to prevent automatic unpaid deductions for breaks that should now be compensated.
Victims’ Economic Safety and Security Act (VESSA): Employer-Issued Device Protections
VESSA has been amended to add important protections for employees who use employer-issued electronic devices to document violence. This addresses a modern reality where company-issued smartphones and tablets have become critical documentation tools for victims of violence.
New Protections (Effective January 1, 2026)
Employees who use employer-issued devices (smartphones, tablets, laptops) to record or communicate about domestic violence, sexual violence, gender violence, or other crimes against themselves or family members are now protected from retaliation.
Employer Obligations
Must Provide:
- Access to photos, videos, or other documentation on employer-issued devices related to crimes of violence
- Notice to employees explaining these rights (required workplace posting)
- Reasonable accommodation for employees to maintain access to this documentation
Cannot:
- Discriminate or retaliate against employees for using employer devices to document violence
- Discharge, refuse to hire, or take adverse action against employees who exercise these rights
- Revoke access to employer-issued devices solely because they were used to record incidents of violence
- Delete or destroy documentation of violence from employer devices
Important Clarifications: What Employers Can Still Do
Employers may still:
- Enforce reasonable device use policies for business purposes
- Comply with investigations or court orders requiring device access
- Retrieve devices for legitimate business purposes (as long as the employee retains access to relevant content through copies or cloud backup)
- Monitor device usage for business purposes, with appropriate notice
The law protects employees from adverse action for using devices to document violence—it does not prevent employers from maintaining appropriate oversight of company equipment for legitimate business reasons.
Compliance Steps
Immediate Actions:
- Post the required VESSA notice (available from the Illinois Department of Labor website at www2.illinois.gov/idol)
- Update employee device use policies to explicitly include these protections
- Train managers and IT staff on appropriate handling of situations involving employee use of devices to document violence
- Establish protocols for device retrieval that preserve employee access to violence documentation
- Review device return procedures in separation processes
Illinois Human Rights Act: Artificial Intelligence Disclosure Requirements
Employers using AI in employment decisions now face new notice and discrimination prevention requirements. This makes Illinois one of the first states to directly regulate AI use in employment decisions.
New Requirements (Effective January 1, 2026)
1. Disclosure Obligation: Employers must notify employees if artificial intelligence is being used in employment-related decisions
2. Discrimination Prevention:
- AI systems must not have the effect of discriminating based on protected classes
- AI systems must not use zip codes as a proxy for protected class membership (addressing concerns about algorithmic redlining and geographic discrimination)
What Counts as “Employment-Related Decisions”
The law broadly covers AI use in:
- Recruiting and hiring (including resume screening and candidate ranking)
- Promotions and transfers
- Scheduling and shift assignments
- Performance evaluations
- Discipline and termination decisions
- Compensation determinations
- Benefits allocation
Hidden AI Systems: What Many Employers Don’t Realize
Many employers use AI without knowing it. AI disclosure requirements apply to:
- Applicant tracking systems with resume screening or candidate ranking features
- Scheduling software that uses algorithms to assign shifts
- Performance management platforms with automated evaluation components
- Video interview tools with automated scoring or analysis
- Background check services using algorithmic risk assessment
- Compensation analysis tools with automated benchmarking
Industry Impact – Technology, Healthcare, and Large Employers: If you use vendor-provided HR technology platforms, contact your vendors to determine whether their systems use AI for employment decisions. You may need to add disclosure language to job postings, employee handbooks, and performance review processes.
Compliance Considerations
Critical Questions to Ask Your HR Technology Vendors:
- Does your platform use AI, machine learning, or algorithmic decision-making?
- What employment decisions does the AI inform or influence?
- Has the AI system been tested for disparate impact on protected classes?
- Does the system use geographic data (zip codes, addresses) in any decision-making?
- What disclosure language do you recommend for compliance with Illinois law?
Employer Action: If your organization uses AI tools—including vendor-provided applicant tracking systems, scheduling software, or performance management platforms with AI components—consult with employment counsel to ensure compliance with disclosure and non-discrimination requirements.
Military Leave Act: Expanded for Funeral Honors Duty
The former “Family Military Leave Act” has been renamed the “Military Leave Act” and expanded to cover military funeral honors participation. This recognizes the important ceremonial role that retired and active military members play in honoring deceased service members.
New Leave Entitlement
Who Must Provide: Employers with 51 or more employees
Amount of Leave:
- Up to 8 hours per calendar month
- Maximum of 40 hours per calendar year
Compensation: Leave must be paid at the employee’s regular rate
Who Qualifies
Employees who are:
- Trained to participate in military funeral honors details, AND
- Either retired or active members of the armed forces (including Illinois National Guard), OR
- Authorized providers or registered members of authorized provider organizations
Note: This leave is in addition to other military leave entitlements under state and federal law, including USERRA protections for active duty service.
Employer Action Required
- Update military leave policies to include funeral honors duty
- Train HR staff on eligibility verification (employees may need to provide documentation of training and membership)
- Configure payroll systems to track and compensate this leave separately
- Update employee handbooks before January 1, 2026
Other Significant Illinois Employment Law Changes for 2026
Beyond the major changes detailed above, Illinois has enacted several other important employment law updates that affect specific employer obligations.
Employee Blood and Organ Donation Leave Act
Change: Part-time employees now qualify for the same 10 days of paid organ donation leave previously available only to full-time employees.
Compensation Calculation: Daily pay based on the daily average the employee received during the last two months of employment.
Why This Matters: Employers who previously excluded part-time employees from organ donation leave must now extend this benefit and update their leave policies accordingly.
Workers’ Rights and Safety Act (New Law)
Purpose: Protects Illinois employees if federal workplace safety or wage-and-hour standards are weakened.
How It Works: If federal OSHA standards or Fair Labor Standards Act provisions are revoked, repealed, or amended to become less protective after April 28, 2025, Illinois agencies must adopt regulations incorporating the stronger federal standards as they existed before the change.
Impact: Ensures Illinois workers maintain robust protections regardless of changes in federal policy. This creates a “floor” of protections that cannot fall below current federal standards.
Practical Consideration: Illinois employers should monitor both federal and state regulations, as state requirements may diverge from federal standards if federal protections are reduced.
Illinois One Day Rest in Seven Act
New Anti-Retaliation Protections: Employers cannot retaliate against, take adverse action against, or discriminate against employees who:
- Exercise rights under the Act (including refusing to work seven consecutive days without a break)
- Make complaints to employers or government agencies
- Participate in or initiate proceedings under the Act
- Testify in investigations or proceedings
Why This Matters: The Act previously provided the substantive right to rest but lacked explicit anti-retaliation language. This amendment strengthens enforcement.
Equal Pay Act
Expanded Coverage: Now applies to ALL employers with 100+ employees working in or reporting to Illinois locations (not just those required to file EEO-1 reports with the EEOC).
Impact: More employers must comply with Illinois equal pay certification and reporting requirements.
Wage Payment and Collection Act
Streamlined Enforcement: Final administrative wage orders from the Illinois Department of Labor are now considered debts to the state if unpaid within 35 days, making it significantly easier for IDOL to collect unpaid wage judgments against employers.
Why This Matters: Employers who lose wage claim disputes face faster and more aggressive collection action. Comply promptly with IDOL orders to avoid additional penalties and collection costs.
Workplace Posting Requirements: A Critical Compliance Obligation
With these significant changes to Illinois employment law, employers must ensure their workplace notices are current and complete. Outdated postings create both legal exposure and operational problems when employees aren’t properly informed of their rights.
What’s Required
Illinois law requires employers to display current federal and state labor law posters where employees can easily see them. These posters inform employees of their rights under:
- Fair Labor Standards Act (minimum wage, overtime)
- Family and Medical Leave Act
- Occupational Safety and Health Act
- Equal Employment Opportunity laws
- Illinois Human Rights Act
- Illinois Victims’ Economic Safety and Security Act (including new device protections)
- Illinois-specific wage and hour requirements
- And many others
The 2026 Posting Update Challenge
New for 2026:
- Updated VESSA notice including employer-issued device protections
- Any updates to Illinois Department of Labor posters reflecting new leave laws
- Potential updates to federal posters based on regulatory changes
Your Options for Staying Compliant
Option 1: DIY Approach
Download individual free posters from government agencies:
- U.S. Department of Labor (dol.gov)
- Illinois Department of Labor (illinois.gov/idol)
- EEOC (eeoc.gov)
- OSHA (osha.gov)
Challenges:
- Monitor multiple government websites for updates (47+ potential annual changes across all agencies)
- Print new versions when laws change
- Manage multiple separate posters
- Track which apply to your specific business
- Ensure remote workers have digital access
- Verify you have all required notices
Time Investment: Several hours per year minimum, plus ongoing monitoring throughout the year
Option 2: Professional Compliance Service
Many businesses use professional labor law poster services that consolidate required notices and automatically provide updates when laws change.
Typical features:
- Consolidated all-in-one posters (federal and state-specific)
- Automatic monitoring of law changes
- Updates shipped when requirements change
- Digital access for remote employees
- Attorney-reviewed content
- Compliance guarantees
Cost: Generally $49-94 per year with automatic updates
Time Investment: Minimal—service handles monitoring and updates
Comparing Compliance Solutions
Professional services like WorkWise Compliance offer consolidated poster solutions with automatic updates and fine reimbursement guarantees. For employers who prefer not to monitor multiple government websites throughout the year, these services provide peace of mind that postings remain current as laws change.
Individual employers should evaluate which approach best fits their compliance resources, risk tolerance, and administrative capacity.
Frequently Asked Questions
Do these Illinois employment law changes apply to remote employees?
Yes, if an employee works remotely but is employed by an Illinois company or works for an Illinois location, most of these laws apply. The key factor is typically where the employer is located or where the employment relationship is based, not where the employee physically works. For remote workers in other states, you may need to comply with both Illinois law and the employee’s home state requirements—consult employment counsel for multi-state remote workforce compliance.
What if my business has exactly 50 employees—which requirements apply?
Employer size thresholds are typically calculated based on total employee count, not full-time equivalents. With exactly 50 employees:
- NICU Leave: You must provide 10 days (applies to employers with 16-50 employees)
- Military Funeral Leave: Does not apply (requires 51+ employees)
- Most other changes apply regardless of employer size
However, if you grow to 51 employees, additional requirements trigger. Monitor your headcount carefully as you approach thresholds.
Can I use the same severance agreement template for Illinois employees and employees in other states?
No. The IWTA requirements are specific to Illinois employees and are more restrictive than most other states. You’ll need Illinois-specific severance agreement templates that include:
- Separate consideration for confidentiality provisions
- Written acknowledgment of employee rights to report to agencies
- Evidence of actual bargaining
- Illinois-specific language
Using a generic national template exposes you to IWTA violations. Work with employment counsel to create compliant state-specific templates.
When exactly must I post the updated VESSA notice?
The updated VESSA notice must be posted by January 1, 2026. The Illinois Department of Labor typically releases updated poster versions 30-60 days before effective dates. Check the IDOL website (www2.illinois.gov/idol) in early December 2025 for the updated notice, or use a professional poster service that will automatically provide the update.
How do I know if my HR software uses AI that requires disclosure?
Contact your vendors directly and ask:
- “Does your platform use artificial intelligence, machine learning, or algorithmic decision-making?”
- “What employment decisions does it inform or influence?”
- “Do you have Illinois AI disclosure compliance documentation?”
Common systems that often include AI: Applicant tracking systems (like Greenhouse, Lever, Workday), scheduling software (like Deputy, When I Work), performance management platforms (like Lattice, 15Five), and video interview tools (like HireVue). If vendors confirm AI use, you must provide disclosure to employees.
Do the IWTA changes affect independent contractor agreements?
The IWTA primarily applies to employment relationships, but Illinois courts have sometimes extended employment protections to certain contractor relationships. If your independent contractors could be classified as employees under Illinois law, the IWTA restrictions may apply. This is particularly important for contractors who work primarily or exclusively for your company. Consult employment counsel to review contractor agreements for IWTA compliance.
Is the paid lactation break requirement limited to a certain number of breaks per day?
The law requires “reasonable” break time but doesn’t specify a maximum number. What’s reasonable depends on individual circumstances—medical needs vary. However, typical lactation schedules involve 2-3 breaks per 8-hour shift, approximately 15-20 minutes each. Employers can establish reasonable policies but must accommodate individual medical needs. Document your policy clearly and train managers to handle requests flexibly.
What happens if I don’t update my employment agreements by January 1?
Non-compliant provisions become void and unenforceable. This means:
- Confidentiality provisions without separate consideration may be unenforceable
- Forum selection clauses requiring non-Illinois venues won’t be upheld
- Choice of law provisions applying non-Illinois law to Illinois employees will be rejected
- Shortened limitation periods won’t be enforced
You lose the protections these provisions were meant to provide, and employees may have stronger positions in disputes. Update agreements promptly to maintain legal protections.
Your 2026 Illinois Employment Law Compliance Checklist
With January 1, 2026 approaching quickly, here’s your prioritized action plan:
If You Only Do Three Things Before January 1…
Even if you’re short on time, prioritize these three critical actions:
- Audit all employment agreement templates with employment counsel (IWTA compliance—biggest legal exposure)
- Update your payroll system to compensate lactation breaks as paid time (Affects ongoing payroll accuracy)
- Verify your workplace postings are current and include the new VESSA notice (Basic compliance requirement with significant penalties)
Complete Compliance Checklist
Before January 1, 2026:
Review and Update Employment Policies
- ☐ Add Family Neonatal Intensive Care Leave policy (effective June 1, 2026)
- ☐ Update lactation accommodation policy to reflect paid breaks
- ☐ Revise military leave policy to include funeral honors duty (employers with 51+ employees)
- ☐ Update VESSA policy to include employer-device protections
- ☐ Add AI disclosure procedures if your organization uses AI in employment decisions
- ☐ Update organ donation leave policy to include part-time employees
- ☐ Review and strengthen anti-retaliation provisions for One Day Rest in Seven Act
Audit Employment Agreements
- ☐ Review offer letters for IWTA compliance with employment counsel
- ☐ Update employment contracts to remove prohibited provisions
- ☐ Revise confidentiality and non-disclosure agreements
- ☐ Overhaul separation and severance agreement templates
- ☐ Add required employee rights acknowledgments to severance agreements
- ☐ Ensure separate consideration is provided for confidentiality provisions
- ☐ Create evidence of actual bargaining in agreement negotiation processes
- ☐ Consult employment counsel for final compliance verification
Update Internal Systems and Processes
- ☐ Configure payroll systems to properly compensate paid lactation breaks
- ☐ Create NICU leave request and approval procedures
- ☐ Establish tracking systems for new leave types (separate from FMLA)
- ☐ Update HRIS system to accommodate new leave categories
- ☐ Develop AI use disclosure protocols if applicable
- ☐ Review HR technology vendor contracts for AI disclosure compliance
Train HR Staff and Management
- ☐ Conduct training on new leave entitlements and request procedures
- ☐ Train on IWTA restrictions and compliant employment agreement practices
- ☐ Educate managers on VESSA protections for employer-issued devices
- ☐ Provide guidance on proper handling of AI disclosure requirements
- ☐ Review anti-retaliation obligations across all new law changes
Ensure Workplace Posting Compliance
- ☐ Verify current posters reflect 2026 law changes
- ☐ Post the updated VESSA notice (check IDOL website in December 2025)
- ☐ Ensure all required federal and state notices are current and properly displayed
- ☐ Provide digital access to posters for remote employees
- ☐ Consider whether a professional compliance service fits your needs and budget
Before June 1, 2026:
- ☐ Finalize NICU leave policies and communication to employees
- ☐ Verify payroll system can track NICU leave separately from FMLA
- ☐ Update employee handbooks with NICU leave provisions
- ☐ Train managers on intermittent NICU leave in 2-hour increments
Ongoing Throughout 2026:
- ☐ Monitor Illinois Department of Labor and Department of Human Rights for guidance on new laws
- ☐ Review effectiveness of new policies and make adjustments based on real-world application
- ☐ Stay informed about federal law changes that may trigger Workers’ Rights and Safety Act provisions
Resources & Next Steps
Government Resources
- Required workplace posters
- Wage and hour guidance
- Leave law requirements
Illinois Department of Human Rights:
- Discrimination and harassment guidance
- Complaint filing procedures
- Federal workplace posters
- FMLA guidance
- OSHA requirements
HR Compliance Hub on HR Launcher Lab
Explore the tools on our Compliance hub to simplify policy management, reduce risk, and stay audit-ready. Clear, consistent compliance processes protect your business, build trust with your team, and set the foundation for sustainable, long-term growth.
Workplace Posting Solutions
Maintaining current workplace postings requires ongoing monitoring of multiple government agencies. You have two main options:
Free DIY Approach: Download individual posters from DOL, IDOL, EEOC, and OSHA websites
- Best for: Smaller employers willing to monitor changes throughout the year
- Time commitment: Several hours annually
- Cost: Free
Professional Compliance Services: Consolidated poster solutions with automatic updates
- Best for: Employers who prefer automated compliance monitoring
- Services like WorkWise Compliance offer: All-in-one posters, automatic updates when laws change, digital access for remote employees, and compliance guarantees
- Cost: Typically $49-94 annually
- Time commitment: Minimal
Explore workplace posting solutions →
Legal Counsel
These articles provide information but are not a substitute for legal advice. For guidance specific to your business, consult with qualified Illinois employment law attorneys. Consider firms with Illinois employment law expertise such as:
- Local Illinois employment law boutiques
- Larger firms with dedicated labor and employment practices
- Your current business counsel with Illinois employment law experience
Important Legal Disclaimers
This article is for informational purposes only and does not constitute legal advice or professional advice. The information provided is based on publicly available sources and summaries of recently enacted Illinois legislation as of December 2025. Employment laws are complex and subject to interpretation, regulatory guidance, and change.
Employers should consult with qualified employment law attorneys licensed in Illinois to ensure full compliance with all applicable federal, state, and local laws. This article should not be relied upon as a substitute for professional legal counsel regarding your specific employment situation.
HR Launcher Lab is not a law firm and does not provide legal advice. Individual labor law posters are available for free from federal and state government agencies.
WorkWise Compliance Disclaimer: WorkWise Compliance is not a government agency and is not affiliated with any government entity. WorkWise Compliance does not offer legal advice. Individual labor law posters are available for free from federal and state government agencies; professional compliance services provide consolidated, monitored, and updated solutions for convenience and risk reduction.
Affiliate Disclosure: HR Launcher Lab has an affiliate relationship with WorkWise Compliance and may earn a commission from purchases made through links in this article at no additional cost to you. This does not affect our editorial content or recommendations. We provide information about both free government poster resources and paid compliance services to help you make informed decisions based on your needs and resources. Our goal is to present all available options objectively so you can choose what works best for your business.
Sources and Additional Reading
This article is based on information from the following authoritative sources:
- Ogletree Deakins LLP. (October 24, 2025). “Illinois Labor and Employment Laws Taking Effect in 2026: What Employers Need to Know.” Retrieved from: https://ogletree.com/insights-resources/blog-posts/illinois-labor-and-employment-laws-taking-effect-in-2026-what-employers-need-to-know/
- Quarles & Brady LLP. (November 11, 2025). “Countdown to Compliance: Illinois Employers should Prepare for New Laws Becoming Effective in 2026.” Retrieved from: https://www.quarles.com/newsroom/publications/countdown-to-compliance-illinois-employers-should-prepare-for-new-laws-becoming-effective-in-2026
- Duane Morris LLP. (November 6, 2025). “Another Year, Another Flurry of Illinois Employment Legislation Brings Expanded Employee Rights and Employer Obligations.” Retrieved from: https://www.duanemorris.com/alerts/another_year_another_flurry_illinois_employment_legislation_brings_expanded_employee_1125.html
For the most current information on Illinois employment law requirements, consult the Illinois Department of Labor website and your employment law counsel.
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