New Year, New Illinois Employment Laws

Heading into 2025, employers need to prepare for significant updates to Illinois employment laws and take proactive steps to ensure compliance. This Commentary highlights key areas of change, effective January 1, 2025, that will affect businesses with Illinois employees.

These changes cover a wide range of issues, including wage transparency obligations in job postings, employee discrimination protections for "Family Responsibilities" and "Reproductive Health Decisions" under the Illinois Human Rights Act, more stringent employee recordkeeping and access requirements under the Personnel Records Review Act, and additional child labor requirements.

Equal Pay Act

The Illinois Equal Pay Act of 2003 prohibits sex- and race-based wage discrimination. Illinois employers must compensate employees equally for "the same or substantially similar work," regardless of race or gender. Beginning January 1, 2025, Illinois employers must disclose salary ranges and benefits in job postings.

Salary Transparency in Job Postings 

H.B. 3129 requires employers with 15 or more Illinois employees to include salary and benefit information in job postings for covered positions. The law does not require that any position be posted. Covered positions are jobs that "will be physically performed, at least in part, in Illinois," or will be performed outside Illinois that report "to a supervisor, office, or other worksite in Illinois." Job postings for covered positions must include a pay scale that "the employer reasonably expects in good faith to offer for the position" and a general description of employee benefits. Employers can satisfy benefit disclosure requirements by including a link to a general benefits description on the employer's website. Third-party sites that host job postings for covered positions will also be subject to these requirements. Additionally, the amendment mandates that employers notify current employees of externally posted promotional opportunities within 14 days of posting.

Human Rights Act

The Illinois Human Rights Act prohibits employment discrimination, harassment, and retaliation based on protected classes. These classes include, among others, sex, race, marital status, disability, and citizenship. Starting January 1, 2025, the Illinois Human Rights Act will provide protection based on two new categories, "Family Responsibilities" and "Reproductive Health Decisions," and will have a longer statute of limitations.

Reproductive Health Decisions 

H.B. 4867 prohibits Illinois employers from discriminating against employees or prospective employees based on "Reproductive Health Decisions." "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." Under this amendment, employers cannot terminate an employee for using fertility treatments, having an abortion, or accessing in-vitro fertilization assistance.

Family Responsibilities 

H.B. 2161 prohibits Illinois employers from taking adverse action against employees or prospective employees based on their "Family Responsibilities." "Family Responsibilities" is defined as an employee's "actual or perceived provision of care to a family member, whether in the past, present, or future." Employers who, for example, "refuse to hire, … engage in harassment," or "discharge" an employee based on "family responsibility" will be committing a civil rights violation. While the law prohibits employer bias against family caretakers in important employment decisions, it does not prohibit employers from requiring employees to fulfill their employment duties.

Longer Statute of Limitations 

S.B. 3310 extends the statute of limitations for filing a discrimination complaint with the Illinois Department of Human Rights from 300 days to two years from the date a violation of the Illinois Human Rights Act occurs. As the time for filing a charge of discrimination with the Equal Employment Opportunity Commission alleging a violation of federal employment discrimination laws remains 300 days in Illinois, this amendment will permit discrimination claims that would be time-barred under federal law to proceed under state law.

Personnel Records Review Act 

The Illinois Personnel Records Review Act has long provided a mechanism for former and current employees to review documents relating to their employment. Subject to limited exceptions, the Act provides that "[e]very employer shall, upon an employee's request … permit the employee to inspect any personnel documents which are, have been or are intended to be used in determining that employee's qualifications for employment, promotion, transfer, additional compensation, discharge or other disciplinary action." Recent amendments to the Act expand the categories of documents that employees may inspect. 

Access to Pay Stubs 

S.B. 3208 permits former and current employees to inspect their pay stubs. Employers must comply with written requests within 21 calendar days. The requested information can be transmitted electronically or through hard copy. Employers must retain pay stubs for a minimum of three years after payment.

Additional Covered Documents 

H.B. 3763 clarifies employee rights relating to records requests. This amendment allows employees to access more categories of documents, including records relating to employee benefits, handbooks, policies, procedures, and agreements. Employers usually must comply with these requests within seven working days of receipt. In some cases, employers may take an additional seven working days to comply.

Whistleblower Act

The Illinois Whistleblower Act prohibits employers from retaliating against employees who report actual or reasonably suspected unlawful activity to government authorities.

Defines of Adverse Employment Action

H.B. 5561 clarifies the scope of prohibited retaliation under the Whistleblower Act. "Retaliatory action" is now defined as "adverse employment action." An "adverse employment action" is an action that "could dissuade a reasonable worker from disclosing or threatening to disclose information." Under this amendment, employers are barred from retaliating against an employee for "disclosing or threatening to disclose" information the employee has a good faith belief relates to illegal activity or activity that "poses a substantial, specific danger to employees, public health, or safety." These changes do not apply retroactively.

Worker Freedom of Speech Act

A new Illinois law, S.B. 3649, effectively bans "captive audience meetings," or mandatory employer-sponsored meetings that are "designed to communicate an employer's position on religious or political matters." This law does not prevent employers from hosting "voluntary" meetings that communicate such content. "Voluntary" is defined as not being "incentivized by a positive change in any employment condition," such as "compensation" and "benefits," nor compelled by "threat of a negative change for non-attendance," such as demotion or termination. Employers are barred from retaliating against employees for failing to attend such meetings or exercising their rights under the new law. Additionally, employers are required to post a notice detailing employee rights under this act.

Child Labor Law of 2024

S.B. 3646 introduces new employment restrictions for companies employing minors under the age of 16. First, employers must provide the minor with a "letter of intent to hire," which, along with an application for an employment certificate, must be submitted to the minor's school. Once the minor is hired, the employer is responsible for maintaining certain records, including the "name, date of birth, and place of residence of every minor who works for that employer, notice of intention to employ the minor, and the minor's employment certificate." These records need to be kept while the minor is employed plus an additional three years. At all times minors must be supervised by an employee over the age of 20. Additionally, minor employees must be given a 30-minute meal break per five hours of continuous work and employers are required to post a notice summarizing the rights a minor has under this law.

Employment requirements vary based on the age of the minor employee or prospective employee. Generally, minors 14 and 15 years old are allowed to work outside of school hours, while minors 13 years old and younger must not be employed "in any occupation or at any worksite."

The law prohibits the employment of minors in several industries, including mining, manufacturing, and construction. It also limits the number of hours and times that minors can work. For example, minors are not allowed to work more than 18 hours per week when school is in session. In contrast, when school is not in session, minors are barred from working more than 40 hours per week. Additionally, minors are restricted from working more than eight hours in any 24-hour period. There are several exceptions to these general rules. For instance, child theatrical performers and minors who work for local park districts are subject to different hour restrictions.