Illinois Expands Employee Leave and Workplace Protections

Illinois has been active on the employment law front, with Governor J.B. Pritzker recently signing significant measures that will reshape workplace obligations. While several provisions are already in effect, the majority become effective on January 1, 2026. Employers with Illinois operations should start preparing now, as staying ahead of these evolving state requirements is especially important when Illinois continues to chart its own course— often going further than federal law.

Employers with Illinois operations should review the following developments and prepare for implementation.

Key Legal Developments Effective in 2025

Military Leave Act – Paid Leave for Funeral Honors

Effective August 1, 2025, the former Family Military Leave Act was renamed the Military Leave Act. Covered employers with 51 or more employees must provide up to eight hours of paid leave per month, not to exceed 40 hours per year, for employees who participate in “funeral honors details.” This leave must be paid at the employee’s regular rate of pay and is available without requiring exhaustion of other accrued leave (vacation, personal, compensatory, sick, or disability). Employers may request a confirmation from the relevant veteran’s service organization that dispatched the employee to the funeral honors detail, or any official notice provided to the employee in relation to the funeral honors detail, that can be used as proof of the employee's participation in the detail. Leave may only be denied when minimum staffing levels are essential to ensure safety, such as in nursing homes.

Equal Pay Act – Certification Updates

Illinois law requires private businesses with 100 or more employees in the State of Illinois to submit an application to obtain an Equal Pay Registration Certificate (EPRC) by providing certain pay, demographic, and other data to the Illinois Department of Labor. As of June 30, 2025, the Illinois Equal Pay Act amendments remove reference to the federal EEO-1 Annual Employer Information Report. Therefore, though the certification requirements otherwise remain the same, Illinois will no longer rely on federal EEO-1 reports as part of its compliance with certification requirements. Employers must continue to recertify every two years by providing a list of all employees during the past calendar year, separated by gender, race, and ethnicity categories. Included in this submission must be the county where the employee works, the start date the employee, and each job category (these remain the same job categories found in the federal EEO-1 report), and report the total wages paid to each employee in the past calendar year. The Equal Pay Compliance statement must be signed by a corporate officer, legal counsel, or authorized agent of the business that certifies compliance, including a statement that the average compensation for its female and minority employees is not consistently below the average compensation for its male and non-minority employees within each “job category.”

The required compliance statement is now integrated into the online portal and no longer needs to be uploaded separately.

Key Legal Developments Effective in 2026

Illinois Human Rights Act – Procedural Changes and New Penalties

Effective January 1, 2026, the Illinois Department of Human Rights (IDHR) investigators will no longer be required to conduct a fact-finding conference as part of the IDHR investigation process. Fact-finding conferences typically require two hours with the investigator, attended by both parties, where the investigator poses questions to each side regarding the allegations. With this change to the Illinois Human Rights Act (IHRA), fact finding conferences are now voluntary, with each side allowed to opt-in within 90 days of the filing of the Charge (unless the IDHR issues its report before receiving the requests). The Department also maintains discretion to conduct a fact-finding conference with reasonable notice to each side.   

The amendments to the IHRA also include a change to the penalties a hearing officer may recommend to the Commission. The penalties already included actual damages, backpay, reinstatement or promotion, attorney fees and costs, among other relief. With this change, the IHRA is amended to add the addition of a civil penalty, which is a separate penalty to “vindicate the public interest” not to exceed $16,000 if the respondent has not been adjudged to have committed prior civil rights violations – up to $70,000 where prior civil rights violations were committed by the respondent (this penalty is paid to the state).

Nursing Mothers in the Workplace Act  – Paid Breaks Required

Effective January 1, 2026, employers with 100 or more employees must provide reasonable, “as needed” paid break time for employees expressing breast milk during their first year following childbirth. Breaks must be compensated at the employee’s regular rate of pay, and employers cannot require employees to use accrued paid leave or impose reduced pay.

Neonatal Intensive Care Leave Act  – New Unpaid Leave

Effective June 1, 2026, Illinois employers will be required to provide unpaid leave to employees with a child in a neonatal intensive care unit (NICU). Employers with 16–50 employees must allow up to 10 days of leave, while those with 51 or more employees must allow up to 20 days. Leave may be taken continuously or intermittently, in increments of at least two hours. Employees who are eligible for leave under the federal Family and Medical Leave Act (FMLA) must exhaust their FMLA entitlement first before NICU leave is available. Employers cannot require employees to substitute paid leave, though employees may choose to do so.

Victim’s Economic Safety and Security Act – Use of Employer-Issued Devices

Effective January 1, 2026, amendments to the Victim’s Economic Security and Safety Act  (VESSA) expand protections for employees who use employer-issued devices. Employers may not take adverse action against employees who use employer-issued equipment to record incidents of domestic, sexual, or gender violence (or other violent crimes) affecting themselves or family or household members. Employer policies that restrict personal use of their work devices should, therefore, be amended to include an exception for VESSA-enumerated purposes.

Workplace Transparency Act – Limits on Agreement Terms

Effective January 1, 2026, the amendment to the Workplace Transparency Act limits what can be included in settlement or other employment agreements with employees. Specifically, the law limits terms in agreements with employees that create conditions of employment or continued employment to (a) shorten any applicable statute of limitations period, (b) apply non-Illinois law to an Illinois employee’s claim, or (c) require a venue outside of Illinois to adjudicate an Illinois employee’s claim. Employers also may not include terms in a settlement or termination agreement that unilaterally state that the promise of confidentiality is the preference of the employee.

A significant change for employers includes the requirement that there must be separately bargained for consideration in exchange for confidentiality – this must be an amount that is distinct from any consideration provided in exchange for a release of claims. Any potential entitlement for an employee to receive costs and attorney fees is also now expanded to include consequential damages as well.

Employee Blood and Organ Donation Leave Act – Expanded Coverage

Effective January 1, 2026, amendments expand blood and organ donation leave to part-time employees. Illinois employers with 51 or more employees must provide blood and organ donation leave to both full-time and part-time employees, upon approval (medical documentation). Part-time employees must be compensated at their daily average rate of pay, calculated based on the two months preceding the leave.

Moving Forward

Employers should act now to update handbooks, agreements, payroll systems, and HR practices to align with these changes. Proactive preparation – including manager training and policy revisions – will help minimize compliance risk and ensure smooth implementation well before the effective dates. For assistance, please contact one of Honigman’s Employment and Labor attorneys here.