Key Takeaways
- Illinois recently concluded its legislative session, with many employment-related bills being sent to Governor JB Pritzker for possible enactment into law.
- As of this publication, the governor has already enacted two laws that amend Illinois Equal Pay Act and Prevailing Wage Act requirements.
- Additional bills that may be signed into law include changes to the Illinois Human Rights Act, the Illinois Workplace Transparency Act, nursing breaks, and new categories of leaves of absence, among others.
Employers with Illinois workers should be aware of several proposed new employment laws and amendments to existing laws that may be enacted if signed by the Governor later this year.
Below are summaries of the proposed new laws, as well as bills the Governor has already signed into law.
Paid Breaks for Nursing Mothers in the Workplace
Effective: January 1, 2026 | SB 212
SB 212 proposes changes to the Nursing Mothers in the Workplace Act, joining New York in requiring employers to provide paidbreaks for nursing employees. If passed, employers would be required to compensate employees for break time used to express breast milk for up to one year after the child's birth. The break time must be compensated for at the employee's regular rate of pay, and employers cannot require the use of paid leave or reduce pay in any other form during this break time.
Creation of the Family Neonatal Intensive Care Leave Act
Effective: June 1, 2026 | HB 2978
Under this bill, Illinois employers must provide job-protected, unpaid leave for employees with a newborn child in a Neonatal Intensive Care Unit (NICU). If passed, employees employed by an employer with 16 to 50 employees are entitled to use up to 10 days of leave, or the length of time the employee's child was a patient in the NICU—whichever is less. Employees employed by an employer with more than 50 employees may take up to 20 days of leave, or the length of time the employee's child was a patient in the NICU, whichever is less. Leave may be taken continually or intermittently, in minimum increments of at least two hours. Employers have the authority to request verification of the NICU stay but may not require employees to reveal confidential medical information.
This leave would be in addition to any time already taken under the Family and Medical Leave Act, and employers cannot force employees to use paid time off instead. Additionally, health insurance benefits must continue during this leave period. Such leave is job protected, and employers must reinstate the employee to the same or substantially similar job position following the conclusion of the leave.
In addition to civil or administrative actions for unpaid wages, employers found in violation of this Act could face penalties of up to $5,000 per violation. Employers should be aware of this proposal and begin reviewing their leave policies in case HB 2978 is enacted.
Amends the Employee Blood and Organ Donation Leave Act by Adding Part-Time Employee Eligibility
Effective: January 1, 2026 | HB 1616
This bill amends eligibility for the Blood and Organ Donation Leave Act. It changes “an employee” to “any participating employee or part-time employee,” clarifying that this act applies to both full-time and part-time employees. The Act allows employees to use up to 10 days of leave within a 12-month period for organ donation services; the proposed amendment adds clarification for part-time employee pay, stating that the employer shall calculate the daily average pay the part-time employee received during the last two months and compensate the employee with this average pay per leave day used.
Strengthening the Enforcement and Penalty Provisions Related to Wage Theft and Unpaid Wages in the Illinois Wage Payment and Collection Act
Effective: Upon Governor's Signature | SB 2164
SB 2164 proposes updates to the Illinois Wage Payment and Collection Act, expanding enforcement powers for the Illinois Department of Labor (IDOL), increasing penalties for wage violations, and strengthening employee protections.
If enacted, final administrative decisions from IDOL requiring employers to pay owed wages, damages, fines, or fees related to wages would automatically become debts to the state if not paid within 35 days after judicial review or when the time to seek review expires. This debt could then be collected using any legal remedy, and IDOL's findings and orders would be enforceable in the same manner as any civil court judgment. This provision replaces prior language that required IDOL to file a petition against the employer before payment, therefore giving IDOL more streamlined authority to pursue recovery of amounts owed in connection with a wage claim.
The bill also increases penalties for employers for unpaid wages. The bill clarifies that, for a claim adjudicated with IDOL through an administrative hearing, the 5% monthly penalty will accrue for each month of unpaid amounts until the final decisions become a state debt. Similarly, the bill clarifies that the 1% daily penalty that accrues for each day of delay in paying unpaid wages that has been ordered to be paid by IDOL will accrue for each calendar day that such amounts remain unpaid until the final order and decision of IDOL becomes a debt owed to the state. The bill also increases non-waivable administrative fees, now ranging from $500—up from $250—to $1,250—up from $1,000—depending on the amount owed.
Lastly, the bill includes a new provision in Section 20, which clarifies how these updates affect past and future wage claims. The bill provides that procedural changes within this bill will apply retroactively, while substantive changes will apply only moving forward. Importantly, the bill specifically states that any changes to the remedies available under the Illinois Wage Payment and Collection Act are procedural in nature; meaning employers may be liable for increased penalties for historical violations of the Act for up to 10 years, the applicable statute of limitations.
Renaming the Family Military Leave Act and Allowing Paid Leave for Military Funeral Honors
Effective: Upon Governor's Signature | SB 220
SB 220 would update and expand the Family Military Leave Act, renaming it to “Military Leave Act” and add new provisions for paid leave related to military funeral honors. This bill would apply to employers with 51 or more employees. Qualifying employees would be entitled to use up to eight hours of paid leave per calendar month, with a maximum of 40 hours per year, to participate in funeral honors details.
To qualify for the new type of leave, employees must be trained to serve in a funeral honors detail and either(1) be an active or retired member of the U.S. Armed Forces or reserve components, including the Illinois National Guard, or (2) be an authorized provider or affiliated with an authorized provider such as a nonprofit. Qualified employees must give reasonable notice to the employer, and the employer is allowed to request confirmation of participation from the relevant veteran service organization or other official notice.
Importantly, employers must pay the participating employee at their regular rate of pay during such leave. However, employers would be allowed to deny requests for military funeral honors leave if allowing such leave would reduce staffing in sensitive environments that would drop below safe or legal limits, such as nursing homes or 24/7 care facilities, except where a collective bargaining agreement applies.
Removal of the Requirement to File EEO-1 to Classify Under the Equal Pay Act, Clarifies Fringe Benefits
Effective: June 30, 2025 | HB 2488
HB 2488 was signed into law by the Governor on June 30, 2025. It expands the scope of businesses subject to the Equal Pay Act by removing the requirement that only private employers that must file the Annual Employer Information Report EEO-1 with the Equal Employment Opportunity Commission are covered by the Equal Pay Act. The Act now applies to any private employer who has 100 or more employees in the state of Illinois. Additionally, HB 2488 clarifies that the term “prevailing wage” means the hourly cash wages plus full journeyman annualized fringe benefits for training and apprenticeship programs registered with the U.S. Department of Labor.
Creation of the Workers' Rights and Worker Safety Act
Effective: Upon Governor's Signature | SB 1976
SB 1976, known as the Illinois Workers' Rights and Worker Safety Act, attempts to lock in worker protections as they currently exist. In particular, the bill prohibits Illinois state agencies from amending or revising their rules in a way that is less stringent than requirements under federal wage-and-hour, or federal coal mine safety laws, as such laws existed as of April 28, 2025—referred to collectively as the 2025 federal laws). Further, if any 2025 federal laws are repealed, revoked, or amended in any manner—including through any interpretative guidance—that results in the less stringent federal protections of workers' rights or worker safety, then the applicable state agency is required to promptly adopt a rule that adopts the standard equivalent to the 2025 federal laws. State agencies are also empowered to establish more stringent standards than those implemented in the 2025 federal laws. To ensure compliance with the bill's requirements, state agencies would be required to submit a report to the Illinois Clerk of the House of Representatives and the Secretary of the Senate describing the agency's actions and efforts to implement and enforce the bill.
Amendment to the Illinois Human Rights Act Giving Flexibility to Fact-Finding Conferences and Adds New Civil Penalties
Effective: January 1, 2026 | SB 2487
SB 2487 proposes changes to the Illinois Human Rights Act related to fact-finding conferences, introduces new civil penalty provisions, and establishes retroactive applicability. Under the proposed amendments, the Illinois Department of Labor is granted discretion to conduct a fact-finding conference, changing the requirement from “shall” to “may.” However, the Department is required to conduct the conference if both parties submit a request within 90 days of the date the charge is filed. Any request must include the party's written agreement to a 120-day extension of the Department's deadline for its report.
SB 2487's new civil penalty provision includes a scale based on the respondent's prior history of violations. A penalty of up to $16,000 may be imposed for a first violation; up to $42,500 if the respondent had one prior violation within the last five years; and up to $70,000 if the respondent had two or more prior violations within the last seven years. Importantly, if the same person committed prior and current violations, the higher penalties may apply regardless of the time between the offenses.
Finally, the bill states that these changes apply to all charges pending or filed on or after the effective date of this amendment.
Amendment to the Workplace Transparency Act
Effective: January 1, 2026 | HB 3638
This bill includes numerous proposed amendments to the Workplace Transparency Act.
First, it would prohibit any contract, agreement, clause, covenant, waiver, or similar document from restricting an employee, prospective employee, or former employee from engaging in “concerted activities” to address work-related concerns. The bill defines “concerted activities” as those engaged in for the purpose of collective bargaining or other mutual aid and protection as provided in the National Labor Relations Act as it stood on the last day of the Biden Administration, as well as under certain Illinois statutes. The bill allows such documents as a condition of employment if they explicitly recognize the right to engage in these concerted activities and permits valid settlement or termination agreements to include confidentiality clauses regarding alleged unlawful employment practices, provided the confidentiality expires within five years of the alleged unlawful employment practice.
The bill restricts provisions that shorten statutes of limitations, apply non-Illinois law to an Illinois employee's claims, require non-Illinois venue for an Illinois employee's claim, or unilaterally declare that ‘confidentiality' is the preference of the employee.
It adds a requirement that consideration for a confidentiality provision must be separate from any consideration that is provided for in exchange for a release of claims.
The bill also expands the definition of “unlawful employment practice” to include the definitions of additional laws enforced by federal and Illinois agencies. Lastly, the bill replaces references to “consequential damages” with “compensatory damages.”
Proposed Employee Protection Law: Use of Employer Devices in Cases of Domestic and Sexual Violence
Effective: Upon Governor's Signature | HB 1278
HB 1278 proposes a new provision to the Victims' Economic Security and Safety Act, aiming to protect employees who use employer-issued electronic devices in the context of domestic violence or any crime of violence. The bill prohibits employers from taking adverse actions against an employee who uses a work-issued device to document incidents of domestic violence, sexual violence, gender violence, or other crimes of violence committed against themselves or a family/household member.
The bill further prohibits employers from revoking the employer-issued device solely because it was used to document domestic violence incidents. Employers must also grant employees access to any photos, videos, audio recordings, or digital documents stored on employer-issued devices that relate to the employee's domestic violence incident.
The bill does not prohibit an employer from complying with investigations or court orders involving the employer-issued device and its contents. Additionally, the bill includes a specific disclaimer against construing it to relieve employees of any reasonable employment policies or the performance of the essential functions of employment.
Expansion of the “Public Works” Definition and Imposition of New Payroll Penalties by Amending the Prevailing Wage Act
Effective: June 30, 2025 | SB 1344
The Governor signed SB 1344 into law on June 30, 2025. It significantly expands enforcement provisions of the Prevailing Wage Act and broadens the definition of “public works.” Employers in the construction and inspection industries should take note, especially those working on municipal sewer systems.
SB 1344 adds sewer inspection projects using closed-circuit television for identifying issues in a sewer system to the definition of “public works.”
The bill also introduces additional civil penalty provisions to the Prevailing Wage Act for failing to file certified payrolls for any public work projects. The first offense may be up to $1,000 and can rise to $2,000 for a second or subsequent offense within five years after the first offense. Employers found in violation may request an administrative hearing within 10 days of receiving notice of the offense. While the contractor or subcontractor may submit mitigating evidence, such as a technical issue when trying to submit payrolls, the bill clearly states that the lack of knowledge of the payroll filing requirement will not be considered as mitigating evidence. If a civil penalty is not paid within 35 days of a final administrative decision, or is not timely challenged, the Attorney General may step in to enforce the penalty in a circuit court.
Amendment to the Prevailing Wage Act Expanding the Definition of “Public Works”
Effective: Upon Governor's Signature | HB 1189
A proposed change to the Prevailing Wage Act expands the definition of “public works” to include all federal construction projects administered or controlled by a public body if the prevailing wage rate for the project is equal to or higherthan the U.S. Secretary of Labor's prevailing wage determination for that kind of work in the same location.
Perkins Coie will continue to track these developments and will update once the Governor has finished signing and/or vetoing these bills.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
