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Previous Updates
Human Trafficking Recognition Act Amendments
Effective January 1, 2026, Illinois will rename its Lodging Services Human Trafficking Recognition Training Act to the Human Trafficking Recognition Training Act (Act).
The amendments also:
- Define employer as a person or entity that operates a lodging establishment, restaurant, or truck stop.
- Set forth that the Department of Human Services will develop a curriculum for an approved human trafficking training recognition program by October 1, 2026.
- Allow the Department of Human Services, local governments, and law enforcement to enforce penalties under the Act.
Paid Lactation Breaks
Under the Nursing Mothers in the Workplace Act (the Act), Illinois employers must provide reasonable break time to employees who need to express breast milk for their nursing infant for one year after the child’s birth. That break time may run concurrently with any break time already provided to the employee.
Effective January 1, 2026, Illinois amends the Act to require covered employers to compensate employees at their regular rate of compensation during lactation/breastfeeding breaks. Employers may not require employees to use paid leave during lactation/breastfeeding breaks or reduce their compensation during the break time in any other manner.
Employers should review and revise their lactation accommodation policies to ensure compliance with these upcoming requirements as well as the federal PUMP for Nursing Mothers Act (PUMP Act) and Pregnant Workers Fairness Act.
Organ Donor Leave Eligibility
Effective January 1, 2026, the Illinois Employee Blood and Organ Donation Leave Act is amended to allow part-time employees to use up to 10 days of paid leave to donate an organ and provide guidance on compensating part-time employees for the leave days used.
You can learn more about this here.
Protections for Employee Concerted Activities
Effective January 1, 2026, amendments to the Illinois Workplace Transparency Act (IWTA) bar certain agreements that prohibit, prevent or otherwise restrict employees, prospective employees or former employees from engaging in concerted activity to address work-related issues for the purpose of collective bargaining or other mutual aid or protection.
The amendments also:
- Expand employee rights to disclose unlawful employment practices and testify in related proceedings.
- Prohibit the unilateral inclusion of certain clauses in employment-related agreements, settlements or termination agreements.
- Allow an employee to recover consequential damages in lawsuits challenging a contract under the IWTA.
You can read more about this here.
Illinois Human Rights Act (IHRA) Amendment
Effective January 1, 2026, the Illinois Human Rights Act (IHRA) is amended to limit the use of artificial intelligence (AI) in employment decisions. Specifically, the following are classified as discriminatory employment practices:
- Use of artificial intelligence (AI) in recruiting, hiring, promotion or other employment decisions that has the effect of subjecting employees to discrimination on the basis of a protected class;
- Use of ZIP codes as a proxy for protected classes as defined under the IHRA; and
- Failure to provide notice to an employee that the employer is using AI for employment decisions.
Victims’ Economic Security and Safety Act Amendment
Effective January 1, 2026, Illinois amends VESSA to provide that an employer may not punish or discriminate against an employee because they used employer-issued equipment to record domestic violence, sexual violence, gender violence, or any other violent crime committed against them or a member of their family or household.
New Employment Requirements
Earlier this summer, the Illinois 104th General Assembly sent many employment-related bills to the governor for consideration. As noted in a previous FrankCrum News Alert, Governor J.B. Pritzker has already signed a few into law and is expected to sign others. The bills include:
- Signed by Governor Pritzker and taking effect immediately, H.B. 2488 expands employer coverage for the Equal Pay Registration Certificate data reporting requirements. Now all private employers with 100 or more employees in Illinois must report their pay data, regardless of whether an employer is required to file a federal EEO-1 report. Previously, only employers that are required to file a federal EEO-1 report were required to comply.
- Effective immediately, SB 220 amends the Family Military Leave Act. Illinois employers with 51 or more employees must offer paid leave for employees serving on a military funeral honors detail. Eligible employees may take up to eight hours per month, capped at 40 hours per year.
- Taking effect January 1, 2026, SB 212 amends the Nursing Mothers in the Workplace Act to require employers to provide paid breaks for expressing breast milk for up to one year after a child's birth. Compensation must be at the employee's regular rate, and an employer may not require an employee to use paid leave.
- HB 2978 enacts the Family Neonatal Intensive Care Leave Act, requiring employers to provide unpaid leave for employees with a newborn child in a neonatal intensive care unit. Employers with 16 to 50 employees would be required to provide up to 10 days of leave or until the child is discharged, whichever is less; those with more than 50 employees would be required to provide up to 20 days. Employees may not be required to use paid time off. Like FMLA leave, leave under the new law is job-protected. Effective on June 1, 2026.
- SB 2124 expands enforcement and increases penalties for wage violations under the Illinois Wage Payment and Collection Act. Unpaid wages, damages, fines and fees automatically become state debts after 35 days with 5 percent monthly interest accruing on unpaid amounts. In addition, the non-waivable administrative fees of $250-$1000 increase to $500-$1,250. The Governor has signed and the bill is effective immediately upon the governor's signature.
- The Governor signed SB 2164 and gives the DOL stronger authority to enforce unpaid wage claims. Final wage decisions now become state debts if not paid within 35 days, and the Department can collect without going to court. Penalties have increased to 5% per month, and administrative fees now range from $500–$1,250. Effective immediately.
Chicago Minimum Wage
Minimum wage will be $16.60 per hour beginning July 1, 2025. Tipped workers in Chicago will earn $12.62 per hour beginning July 1, 2025.
Chicago Paid Leave Pay Out
Starting on or after July 1, 2025, medium size employers (i.e., those with 51-100 covered employees) subject to the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance must pay out all unused, accrued paid leave at a covered employees’ final pay rate upon their separation from employment, or if they are transferred outside of the geographic limits of the City resulting in them no longer being covered by the Ordinance.
Until that date, the Ordinance requires medium size employers to pay covered employees no more than a maximum of 16 hours (unless the employer chooses to set a higher limit) of unused, accrued paid leave at their final pay rate upon their separation or such transfer.
When it was first enacted, the effective date of this provision was December 31, 2024, but it was postponed by an amendment.
Chicago Paid Leave and Paid Sick and Safe Leave Ordinance as amended by Substitute Ordinance No. 2023-0002980.
Chicago Minimum Wage
Effective July 1, 2025, the minimum wage in Chicago, Illinois is increased in proportion to the increase, if any, in the Consumer Price Index for All Urban Consumers, capped at 2.5%.
The maximum tip credit is 24% of the adjusted minimum wage rate.
The minimum wage for participants in Subsidized Temporary Youth Employment Programs, participants in Subsidized Transitional Employment Programs, minors and learners increases by either $1.50 or by the inflation adjustment for the standard minimum wage, whichever is less.
Chicago, Illinois Code of Ordinances Chapter 6-105, Chicago Minimum Wage and Paid Sick Leave Ordinance, as amended by Chicago One Fair Wage Ordinance SO2023-0002995.
When ready, the July 1, 2025, rates will be posted at the website below:
https://www.chicago.gov/city/en/depts/bacp/supp_info/minimumwageinformation.html
Cook County Paid Leave
The Cook County Board of Commissioners has approved additional amendments to the county’s Paid Leave ordinance. Key updates include the following clarifications:
No Accrual of Paid Leave While Using Paid Leave:
The ordinance mandates that paid leave accrue only on “hours worked.” While earlier rules had stated that employees could accrue paid leave while using it, the updated rules now align with the ordinance’s original intent—accrual only occurs based on actual hours worked.
The ordinance mandates that paid leave accrue only on “hours worked.” While earlier rules had stated that employees could accrue paid leave while using it, the updated rules now align with the ordinance’s original intent—accrual only occurs based on actual hours worked.
Timing of Payment for Used Paid Leave:
Employers are not required to issue payment for paid leave until the payday following the pay period in which the leave was taken.
Employers are not required to issue payment for paid leave until the payday following the pay period in which the leave was taken.
Additional Benefits During Paid Leave:
Previously, employers were required to extend additional benefits (such as paid leave accrual, seniority, or health benefits) to employees using statutory paid leave if those benefits were typically provided during regular work. The revised rules clarify that if an employer chooses to offer such benefits during statutory paid leave, they must be offered in the same way and to the same extent as if the employee were working.
Previously, employers were required to extend additional benefits (such as paid leave accrual, seniority, or health benefits) to employees using statutory paid leave if those benefits were typically provided during regular work. The revised rules clarify that if an employer chooses to offer such benefits during statutory paid leave, they must be offered in the same way and to the same extent as if the employee were working.
Use of Paid Leave During Suspension or Disciplinary Action:
Employers cannot mandate the use of statutory paid leave during a suspension or disciplinary leave but may permit employees to use it voluntarily under such circumstances.
Employers cannot mandate the use of statutory paid leave during a suspension or disciplinary leave but may permit employees to use it voluntarily under such circumstances.
Policy Updates and Employee Notification:
Employers should review their paid leave policies to determine whether these revisions affect them. Any changes to the policy must be communicated to employees in writing within five days of implementation.
Employers should review their paid leave policies to determine whether these revisions affect them. Any changes to the policy must be communicated to employees in writing within five days of implementation.
Microsoft Word - 2025 03 22 Procedural Rules - Paid Leave Ordinance Legistar (1)
Overtime Calculations
In Mercado v. S&C Electric Co., 2025 IL 129526, the Illinois Supreme Court held employers violate overtime law by not including non-discretionary bonus payments when calculating employees’ overtime rate. This means that Illinois law now holds that the overtime rate must include all bonuses not in the nature of gifts.
S&C Electric Co. paid its employees bonuses and those payments were not counted when determining the employees’ overtime hourly rate. S&C Electric employees sued. S&C argued the bonuses did not have to be counted to determine the overtime rate, because the bonuses were not measured by or dependent on hours worked. The trial court and court of appeals agreed. The Supreme Court did not.
This conflicts with the federal FLSA. If it only applies to production bonuses – and not bonuses unrelated to hours or production – it is consistent with the FLSA. However, under the FLSA, a number of non-discretionary bonuses are excluded from the overtime rate because they are unrelated to hours worked, production or efficiency. Examples of exclusions from the overtime rate include service awards for tenure; reporting pay (we only needed you for 2 hours, so we are sending you home, but paying you for the full 8 hours of your shift), and hiring bonuses that do not require continued employment.
S&C could have avoided this situation by paying a percentage bonus instead of a fixed-dollar bonus. This type of bonus is a % of the employee’s total earnings. For instance, if an employee makes $50,000 -- $45,000 regular pay and $5,000 overtime pay -- a 1% bonus gives them a $500 bonus. Because it is based on total earnings, including overtime pay, it includes overtime in the hourly rate automatically.
When there is a difference between federal and state law the employer should follow the law that benefits the employee more.
Access to Personnel Records
Effective January 1st, the IL Personnel Records Review Act (PRRA) added three new categories of documents available to employees on request: (1) employment-related contracts or agreements that bind the employee, (2) employee handbooks that apply or applied to the employees, and (3) written employer policies or procedures that apply or applied to the employees.
The law applies to employers with 5 or more employees.
The law applies to employers with 5 or more employees.
Cook County Paid Leave Amendments
Recent amendments to the Cook County Paid Leave Ordinance’s procedural rules introduce new requirements that employers must adhere to related to accruals, a written policy, notice requirements, rate of pay calculations, and interaction with the federal Family and Medical Leave Act (FMLA).
Amendment Highlights
Key highlights of the changes and employers’ considerations include:
- Accrual of Paid Leave During Leave. Employees will continue to accrue paid leave even while they are using it. However, paid leave is still not considered “hours worked” for overtime calculation purposes.
- Mandatory Written Paid Leave Policy. Employers must maintain a written policy outlining the specifics of their paid leave offering. The policy must include information on accrual rates, permissible uses, employee rights, and contact information for the Cook County Commission on Human Rights and may be included in the Employer’s Handbook or as a standalone notice. The written policy must be provided to employees at the start of employment (or the date of initial accrual) and annually thereafter.
- Notice to Remote Workers. Employers must provide remote workers with a copy of the County-issued Workplace Poster, informing them of their rights under the ordinance (this should also be posted in the workplace). This method could include email, an online portal, or a company intranet. You can find the poster here: PLO Notice Poster.
- Paid Leave Calculation for Multiple Rates of Pay. Employers must choose between calculating paid leave based on the average hourly rate or the greater of the minimum wage and the lowest hourly rate.
- FMLA Precedence. FMLA rules and regulations, including notification requirements, will supersede the Ordinance’s rules. Employers may now require FMLA-eligible employees to exhaust their accrued paid leave before taking unpaid FMLA leave.
Additional details including frequently asked questions (FAQs) on Paid Leave requirements are available on the Cook County Paid Leave Ordinance and Regulations webpage.
Poster
Illinois released its Illinois Right to Privacy in the Workplace/E-Verify Poster, which is required for all Illinois employers using the federal E-Verify system. This is in addition to the required federal E-Verify posting.
Click here for the poster.
Pay Transparency
The IDOL recently released guidance/FAQs on their pay transparency law. Some highlights include:
- Employers are not required to make job postings under the law; it only applies when an employer chooses to publish a job opening. If a job posting is not published, employers must provide pay scale and benefits information prior to any offer or discussion of compensation only when the applicant asks for it.
- The amendments do not apply to postings that generally seek applicants without reference to a specific job (e.g., a “help wanted” sign).
- The amendments also do not apply to jobs that employers do not expect to be performed in Illinois or that will only occasionally or sporadically do work in Illinois.
- The wage or wage range must be what the employer anticipates offering to candidates but does not have to be what the employer actually pays the person it hires for the position if other factors influence the pay of the applicant selected.
- Employers should avoid open-ended phrases (e.g., “up to $60,000” or “pay starts at $50,000 depending on qualifications”) when setting the wage range.
- Employers can post a link that would give an applicant the wage and benefit information and should post the expected wages for all applicable worksites if wages will differ depending on the worksite.
Equal Pay Act Pay Transparency FAQ
Pay Transparency Law
Effective January 1, 2025, the Illinois Equal Pay Act is amended to require Illinois employers with 15 or more employees to include the pay scale and a benefits description in any job posting for a specific position and to inform current employees of promotion opportunities within 14 days of advertising the position externally.
The pay disclosure requirements apply to those jobs that (1) will be performed, at least in part, in Illinois, or (2) will be performed outside of Illinois if the hired employee will report to a supervisor, office or other work site in Illinois.
Employers are also required to provide employees their current wage or salary range, along with a general description of benefits upon hiring.
Employers may use any of the following considerations in order to determine the “pay scale” for a job posting:
- The actual, applicable pay scale;
- The previously determined salary range for the position;
- The actual salary range of employees who currently hold the position; and/or
- The budgeted amount for the position.
The amendment requires employers to make and maintain records of the pay scale and benefit information for each position, and the job posting for each position. These records must be kept for at least five (5) years.
The amendment also includes anti-retaliation requirements.
Captive Audience Meetings
As a reminder, effective January 1, 2025, Illinois's Worker Freedom of Speech Act prohibits employers from discharging, implementing corrective action, or otherwise penalizing (or threatening such actions) an employee or taking any adverse employment action against an employee for refusing to attend or take part in an employer-sponsored meeting or to receive any communication intended to convey the employer's opinions about political matters.
The law defines political matters to include anything related to the decision to join or support a labor organization.
Additional Protections Added
Employers are prohibited from taking adverse actions toward employees with “family responsibilities” but employers are not required to make accommodations or modifications to policies.
“Family responsibilities” means an employee’s actual or perceived provision of personal care to a family member. Bill Text: IL HB2161 | 2023-2024 | 103rd General Assembly | Chaptered | LegiScan
In addition, IL employers may not discriminate against decisions on reproductive health:
“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.” Bill Text: IL HB4867 | 2023-2024 | 103rd General Assembly | Chaptered | LegiScan
Both bills are effective January 1, 2025.
Personnel Records Review Act
Effective January 1, 2025, Illinois amends the Personnel Records Review Act (the Act) to:
- Expand the documents that employees may inspect and copy;
- Change the procedure for submitting and responding to requests;
- Exclude certain expenses from duplication fees that an employer can charge; and
- Change the enforcement provisions of the Act.
Child Labor Law
Effective January 1, 2025, the Illinois Child Labor Law, 820 ILCS 205/1 et seq., is repealed and replaced with the Child Labor Law of 2024, which establishes requirements for minors under the age of 16 involving:
- Prohibited occupations;
- Hours of work;
- Break periods; and
- Employment certificate/work permits.
In addition, employers must ensure that all minors are supervised by an adult 21 years of age or older, on site, at all times while the minor is working.
Captive Audience Meetings
Governor Pritzker has signed into law Illinois SB 3649. Effective January 1, 2025, this law prohibits employers from discharging or disciplining employees who refuse to attend mandatory employer-sponsored meetings if the meeting is designed to communicate an employer’s position on religious or political matters. The law defines “political matters” to include a reference to an employer’s decision to “support any…labor organization” and is intended to prohibit employer-sponsored meetings about unions.
Biometric Information Privacy Act
Effective August 2, 2024, Illinois has amended the Biometric Information Privacy Act (BIPA) to clarify that the law does not provide for so-called "per scan" damages. BIPA regulates the use, collection, and storage of biometric information, like fingerprints and retinal scans, and requires notice and consent.
The amendment also adds a definition for electronic signatures to BIPA, thereby recognizing that consent given in electronic form is valid.
Disclosure of Employer Use of AI
H.B. 3773, signed August 9, 2024, amends the IL Human Rights Act to make it unlawful for employers to use AI in recruitment, hiring, promotion, discipline, termination and other terms, privileges or conditions of employment if the technology is discriminatory. The legislation, effective January 1, 2026, also restricts employers from using ZIP codes as a stand-in for protected classes in addition to requiring companies to notify workers about the use of AI. The penalties include back pay, attorney fees, and actual damages for injury or loss.
The law defines AI broadly as a machine-based system that generates outputs such as predictions, content, recommendations or decisions. It also includes generative AI that can produce prose, images, audio, video and more.
Illinois becomes the second state, following Colorado, to enact a broad law regulating the use of AI in employment. Check out last month’s FranklyHR article on the evolving AI landscape: Avoiding Compliance Pitfalls in the Evolving AI Legal Landscape (frankcrum.com)
DTLSA Amendment
This month, new legislation was enacted to amend the Day and Temporary Labor Services Act (DTLSA). The new amendments aim to address various issues related to labor practices within the day and temporary labor services industry. Key changes include updates to employee notices, application receipts, clarifications on labor disputes, and equal pay calculations.
Staffing agencies must include the following in the employment notice when assigning work:
- The name of the day or temporary laborer
- The name and nature of the work to be performed, including a list of basic job duties and the equipment, protective clothing, and training that are required for the task
- The wages offered
- The name and address, including county, of the destination of each day or temporary laborer
- The terms of transportation
- Whether a meal or equipment (or both) is provided
- The seniority and hourly wage of the comparator are used to determine the wage, and the standard occupational classification is used to determine the wage if the temporary laborer is entitled to the equal pay requirements.
Application receipts must be provided to the employee who seeks work but is not placed that day. The receipt should have the following information:
- The name and location of the day and temporary labor service agency and branch office
- The name and address of the applicant
- The date and the time that the applicant sought the work assignment
- How the applicant sought the work assignment
- The specific work sites or type of jobs sought by the applicant, if applicable
Please see underlined portions of SB3650: 10300SB3650enr (ilga.gov)
Chicago Wage Theft Ordinance
Effective July 1, 2024, final rules that amend and clarify the Chicago Wage Theft Ordinance will take effect.
Among other provisions, the rules:
- Add day laborers to the definition of a covered employee;
- Clarify that required notices of wage theft rights must be posted in other languages if a significant portion of the employer's workers are not literate in English - i.e., 5% or more of the covered employees at a jobsite; and
- Require additional pieces of information to be retained in records for all employees in general, and others specifically for tipped employees.
bacpolsminimumwageandwageEtheftrules_07012024.pdf (chicago.gov)
Chicago and Cook County Minimum Wage
Effective July 1, 2024, in Chicago, Illinois:
Minimum Wage increase: $16.20
Minimum Cash Wage increase: $11.02
Maximum Tip Credit decrease: $5.18
Effective July 1, 2024, in Cook County, Illinois:
Minimum Wage increase: $14.05
Minimum Cash Wage remains: $8.40
Maximum Tip Credit increase: $5.65
Illinois Freelance Worker Protection Act
Effective July 1, 2024, the Illinois Freelance Worker Protection Act requires contracting entities that hire freelancers to provide services or products valued at $500 or more to:
- Enter into written contracts;
- Make timely payments (within 30 days); and
- Refrain from retaliation.
Chicago Paid Leave and Paid Sick and Safe Leave
The Chicago Department of Business Affairs and Consumer Protection published the final rules and a fact sheet supporting Chicago’s new Paid Leave and Paid Sick and Safe Leave Ordinance. Both the ordinance and the rules go into effect on July 1, 2024, and will require employers to annually provide up to 40 hours of Paid Leave and up to 40 hours of Paid Sick Leave to covered Chicago employees.
Highlights include:
- Employers may frontload 40 hours of Paid Leave and 40 hours of Paid Sick Leave of on the first day of the 12-month period. Frontloading at least 40 hours of Paid Leave will alleviate the employer’s Paid Leave carryover obligations under the law, but – as emphasized in all caps – frontloading 40 hours of Paid Sick Leave will not alleviate the employer’s Paid Sick Leave carryover obligations.
- Circumstances under which employers can deny an employee’s request for Paid Leave.
- Employers can restrict the use of Paid Leave or Paid Sick Leave to the employee’s regular work week.
- Unlike the state’s Paid Leave exemptions for pre-existing PL policies, Chicago employers must comply with all aspects of the ordinance.
- Employees must receive their regular rate of pay and continued health care benefits while using PL & PSL.
- There are notice requirements and a poster will be released by the city agency.
Regulations Interpreting PL For All Workers Act
The IL DOL published final regulations & FAQs interpreting their IL PL For All Workers Act which took effect on January 1, 2024. Employers should review their policies and procedures in light of the final regulations.
Click here to review the FAQs and to see further information.
Some highlights include:
- Clarification that an employer’s policy must satisfy the minimum amount of leaverequired by the Act and offer employees the option, at their discretion, to take paid leave for any reason. If an employer’s policy meets these qualifications, the Act indicates that the employer would not need to modify its paid time off policy to comply with the Act. The interpretations also gave limited situations for denial of leave.
- Clarification that “work periods must be counted on a minute-by-minute basis or may be rounded up to the next 15 minutes. An employer may not round down time worked.”
- Frontloading questions were also clarified that part-time employees frontload grant can be reduced at a pro rata amount consistent with the employee's anticipated work schedule for that year and can be reduced for mid-year hires at a pro rata amount consistent with the employee's anticipated work schedule for that year.
The final regulations create several other notice obligations for employers:
- Notice that PTO Policy Used for Compliance: If an employer chooses to credit the paid leave provided for under the Act to an existing paid leave allowance provided by the employer, such policy must be communicated to the employee within 30 days after the start of employment or of the effective date of the policy.
- Initial Notice of Frontloading: If an employer chooses to frontload paid leave in lieu of accrual, the employer must give written notice to the employee informing the employee of how many paid leave hours that employee is receiving on or before the first day of initial employment or on or before the first day of the initial 12-month period. The rules do not clarify whether this notice requirement can be satisfied vis à vis providing the employer’s written paid leave policy, or if it requires affirmative notification to the employee of their particular frontloaded benefits.
- Other Changes to Employer Policy: If an employer changes its paid leave policy, it must notify the employee of the updated paid leave policy as soon as practical.
- If the changes relate to a switch from frontloading to accrual, the employer must give at least 30 days’ notice prior to the end of the 12-month period.
- If an employer changes the amount of frontloaded leave that will be provided, the employer must give written notice to the employee informing the employee of how many paid leave hours that employee is receiving on or before the initial 12-month period.
Staffing Agencies Equal Pay Rules
A group of staffing associations and agencies successfully stopped the Illinois Department of Labor from enforcing parts of the new requirements meant to strengthen equal pay rights under the state’s Day and Temporary Labor Services Act. The recently amended equal pay and benefit rules were to take effect on April 1, 2024, but a federal court temporarily halted the equal benefit requirements.
Under the new requirements, day and temporary laborers who are assigned to a client by a labor service agency for more than 90 calendar days must receive – at a minimum – equal pay and benefits to the client’s lowest-paid comparator employee. The 90-calendar-day calculation would begin April 1st, so the end of June is the earliest that workers would be affected.
A comparator employee has the same level of seniority and performs the same or substantially similar work in similar working conditions requiring substantially similar skill, effort, and responsibility. If there is no comparator employee, the day or temporary laborer must receive at least equal pay and benefits to the lowest-paid employee with the closest level of seniority.
Alternatively to providing equal benefits, the labor agency could pay the day or temporary laborer the cash equivalent of the client’s actual cost of the comparator employee’s benefits.
New Hire Reporting Law
The Illinois new hire reporting law will require reporting of newly hired independent contractors to the IL Directory of New Hires beginning January 1, 2024. To report any independent contractors you have two options:
1. Online - You will be prompted to log in, which requires you to create an online username and password, or,
2. Complete the IDES New Hire Form and submit it to IDES by fax or U.S. mail
Illinois New Hire Directory
P.O. Box 19212
Springfield, IL 62794-9212
P.O. Box 19212
Springfield, IL 62794-9212
Fax data to: 1-217-557-1947 (24-hour fax line)
The state is available for assistance as you report your new independent contractors at 1 800 327-HIRE (4473).
https://ides.illinois.gov/employer-resources/taxes-reporting/new-hires.html
Electronic Posting for Remote and Traveling Employees
Effective January 1, 2024, an employer with employees who do not regularly report to a physical workplace, such as employees who work remotely or travel for work, must provide the Your Rights Under Illinois Employment Laws Poster and Illinois Day and Temporary Labor Services Act Poster by email to its employees or by conspicuous posting on its website or intranet site, if that site is regularly used by the employer to communicate work-related information to employees and is able to be regularly accessed by all employees, freely and without interference.
Required Posters & Disclosures - Employers (illinois.gov)
Workplace E-cigarette Usage Prohibited
Effective January 1, 2024, the Smoke Free Illinois Act prohibits electronic cigarette (e-cigarette) use in the workplace by defining smoke or smoking to include the use of e-cigarettes.
Evanston Fair Workweek Ordinance
Effective January 1, 2024, Evanston’s Fair Workweek Ordinance takes effect. The ordinance requires certain employers to:
* Provide employees with 14 days’ notice of their work schedules;
* Compensate employees for changes or cancellations to their scheduled shifts that occur with less than 14 days’ notice;
* Offer additional hours to existing employees before hiring new part-time employees; and
* Provide additional pay for employees who agree to work “clopening” shifts that start less than 11 hours after the last shift ended.
* Compensate employees for changes or cancellations to their scheduled shifts that occur with less than 14 days’ notice;
* Offer additional hours to existing employees before hiring new part-time employees; and
* Provide additional pay for employees who agree to work “clopening” shifts that start less than 11 hours after the last shift ended.
The ordinance also imposes notice posting and recordkeeping requirements on employers and provides retaliation protections to employees.
Illinois Enacts Paid Leave For Any Reason
Effective January 1, 2024, the Paid Leave for All Workers Act (The Act) requires private employers with one or more employees to provide paid leave that employees may use for any reason. Employers may not require employees to provide a reason for taking paid leave.
Accrual/Front Load
An employee accrues one hour of paid leave for every 40 hours worked, up to 40 hours of leave in a 12-month period. Accrual begins upon the start of employment or January 1, 2024, whichever is later. Employees are entitled to begin using the accrued paid leave after 90 days. If an employee begins accruing paid leave on January 1, 2024, the first day they could take that paid time off would be March 31, 2024. An employer may frontload paid leave time by giving a full year’s worth of leave that meets the minimum requirements of the Act to an employee at the beginning of the year.
Carry Over/Payout
Employees are allowed to carry over unused, accrued leave from one year to the next under this law. The Act does not require payout of unused leave unless the leave is credited to the employee’s paid time off bank or employee vacation account; however, employers should additionally consider their vacation payout obligations under the Illinois Wage Payment and Collection Act.
Policy/Notice and Posting
If your company has an existing policy that meets or provides the minimum amount of leave required by the Act (40 hours) in a 12-month period and your employees can take that leave for any reason, you do not need to modify the terms of your policy per the Illinois Department of Labor (IL DOL).
Employers must comply with the Act's notice and posting requirements upon hiring an employee or by March 31, 2024, whichever is later. The IL DOL will release the required notice on their website by the end of 2023.
The IL DOL is preparing guidance and other resources and materials. They have released FAQs for the upcoming paid leave law. Paid Leave for All Workers Act FAQ (illinois.gov).
This law does not apply to businesses already subject to municipal or county laws that require paid leave (such as Chicago below).
Chicago New Paid Leave and Paid Sick and Safe Leave Ordinance Delayed to July 1, 2024
On December 13, 2023 the Chicago City Council voted to delay the paid leave changes in the new Chicago Paid Leave and Paid Sick and Safe Leave ordinance from January 1, 2024 to July 1, 2024. The current paid sick leave accrual rate of 1 hour for every 40 hours worked will remain in effect through June 30, 2024 and paid sick leave carryover provisions will now take effect July 1, 2024. Paid leave accrual will now begin July 1, 2024, not January 1, 2024 as originally contemplated.
Organ Donation Leave
Effective January 1, 2024, the Employee Blood Donation Leave Act is renamed the Employee Blood and Organ Donation Leave Act and is broadened to include leave for organ donation.
Expanded Family Bereavement
Effective January 1, 2024, the Family Bereavement Leave Act (FBLA) is renamed the Child Extended Bereavement Leave Act (CEBLA) and amended to require additional unpaid leave for eligible employees who lose a child by suicide or homicide. The amount of leave required depends on the employer's size.
All employers with at least 50 full-time employees in Illinois are covered by the Act. However, the length of the leave entitlement differs based on whether the employer is considered a “large” or “small” employer. All full-time employees who have worked for their employer for at least 2 weeks are eligible for bereavement leave under the Act.
All employers with at least 50 full-time employees in Illinois are covered by the Act. However, the length of the leave entitlement differs based on whether the employer is considered a “large” or “small” employer. All full-time employees who have worked for their employer for at least 2 weeks are eligible for bereavement leave under the Act.
A “large” employer employs 250 or more full-time employees in Illinois. Eligible employees of large employers are entitled to use up to 12 weeks of unpaid leave following the loss of their child by suicide or homicide. A “small” employer employs at least 50 but fewer than 250 full-time employees in Illinois. Eligible employees of small employers are entitled to use up to 6 weeks of unpaid leave following the loss of their child.
In addition to expanded bereavement leave for a child with FBLA noted above, IL HB 2493 requires an employer to provide up to 2 workweeks of unpaid leave to an employee grieving a family or household member killed in a crime of violence. Effective 01/01/2024. Illinois General Assembly - Full Text of HB2493 (ilga.gov)
Illinois Enacts Paid Leave For Any Reason
Effective January 1, 2024, the Paid Leave for All Workers Act (The Act) requires private employers with one or more employees to provide paid leave that employees may use for any reason. Employers may not require employees to provide a reason for taking paid leave.
Accrual/Front Load
An employee accrues one hour of paid leave for every 40 hours worked, up to 40 hours of leave in a 12-month period. Accrual begins upon the start of employment or January 1, 2024, whichever is later. Employees are entitled to begin using the accrued paid leave after 90 days. If an employee begins accruing paid leave on January 1, 2024, the first day they could take that paid time off would be March 31, 2024. An employer may front load paid leave time by giving a full year’s worth of leave that meets the minimum requirements of the Act to an employee at the beginning of the year.
Carry Over/Payout
Employees are allowed to carry over unused, accrued leave from one year to the next under this law. The Act does not require payout of unused leave unless the leave is credited to the employee’s paid time off bank or employee vacation account; however, employers should additionally consider their vacation payout obligations under the Illinois Wage Payment and Collection Act.
Policy/Notice and Posting
If your company has an existing policy that meets or provides the minimum amount of leave required by the Act (40 hours) in a 12-month period and your employees can take that leave for any reason, you do not need to modify the terms of your policy per the Illinois Department of Labor (IL DOL).
Employers must comply with the Act's notice and posting requirements upon hiring an employee or by March 31, 2024, whichever is later. The IL DOL will release the required notice on their website by the end of 2023.
The IL DOL is preparing guidance and other resources and materials. They have released FAQs for the upcoming paid leave law. Paid Leave for All Workers Act FAQ (illinois.gov).
This law does not apply to businesses already subject to municipal or county laws that require paid leave (such as Chicago below).
Chicago Passes New Paid Leave and Paid Sick and Safe Leave Ordinance
Effective December 31, 2023, the Chicago Paid Leave and Paid Sick and Safe Leave ordinance, which is an expansion of the current ordinance, will take effect for all employers with one or more employees.
The new ordinance requires that covered employees earn two types of paid time off: Paid Leave and Paid Sick Leave. Paid leave under the ordinance may used for any purpose, and an employer may not require employees to disclose the reason for using paid leave. Paid sick leave is only available for specified purposes, which are similar to those under the earlier Paid Sick Leave ordinance.
Accrual/Front Load
A covered employee (an employee who in any two-week period performs at least two hours of work while physically present in the City of Chicago) must earn at least 40 hours each of paid leave and paid sick leave. An employer can set a cap of 40 hours for each leave per 12-month period. The accrual rate for each type of leave is one hour for every 35 hours worked. New employees become eligible to start using paid sick leave on the 30th calendar day following commencement of employment; paid leave on the 90th calendar day.
Carry Over/Payout
Employees can carry over 16 hours of accrued, unused paid leave and 80 hours of accrued, unused sick leave to the next benefit year. Alternatively, employers can front load 40 hours of paid sick leave plus 40 hours of paid leave at the beginning of each benefit year, and the front-loading method relieves the employer of the carry-over requirement. An employer can satisfy the requirements of the ordinance by offering an unlimited paid-time-off policy, provided the policy meets certain other requirements.
The new ordinance also requires that accrued, unused Paid Leave be paid to employees at the termination of employment or no longer deemed a covered employee. There are some exemptions for employers:
- A small employer (50 or fewer covered employees) is exempted from paying out accrued Paid Leave.
- A medium employer (51-100 covered employees) will only have to pay out a maximum of 16 hours of accrued Paid Leave the first year the ordinance is in effect until December 31, 2024, after which they will be required to pay the full balance going forward.
Keep in mind, employers that provide any amount of vacation time or combine paid time off into a PTO plan are required by state law to pay accrued but unused time at separation of employment per the Illinois Wage Payment and Collection Act. This ordinance does not change that state law requirement.
Policy/Notice and Posting
If an employer has a policy that grants employees Paid Leave or Paid Sick Leave in an amount and manner that meets or exceeds the requirements, the employer is not required to provide additional time. Employers may have reasonable policies requiring prior notice, not to exceed seven days for use of both leaves. Employers may also reasonably require preapproval for the use of paid leave.
Employers will need to provide employees with written notification of their paid time off policy at commencement of employment. Any changes to the employer's paid time off policy requirements must be provided to employees at least five days before the change takes effect, and at least fourteen days ahead of time if the change will affect the employee’s final compensation for such leave.
Employers must also post a notice regarding employee rights under the ordinance. The City of Chicago will circulate a form notice at a future date.
Reach out to your Payroll Coordinator and FrankAdvice HR Consultant for needed updates regarding these changes.
Evanston Fair Workweek Ordinance
Effective September 1, 2023, the Evanston Fair Workweek Ordinance requires covered employers in covered industries to provide covered employees:
- An initial estimate of their work schedule as well as ongoing advance notice of work schedules;
- The right to decline schedule changes;
- Compensation for alterations to previously scheduled shifts;
- Offers of additional work hours to existing employees;
- The right to decline work schedule hours that occur within 11 hours of their last shift; and
- The right to request a modified work schedule.
The ordinance also imposes notice-posting requirements on employers and provides anti-retaliation protections to employees.
Chicago Updates Fair Workweek Ordinance
The city issued new guidance regarding predictability pay exceptions for “mutual” schedule changes. This interpretation of a mutual agreement suggests an additional compliance layer, of obtaining “informed consent,” if an employer is to apply this exception to predictability pay.
Chicago has also released an updated notice:
All notices:
FAQs:
Chicago Ban-The-Box
Chicago employers that are not subject to the state-wide restrictions on criminal history checks with 14 or fewer employees must now generally follow the requirements of Illinois law. The Chicago amended ban-the-box ordinance (Section 12): (1) creates a new individualized assessment requirement; (2) requires a pre-adverse and final adverse action notice when employers are assessing criminal records; and (3) requires additional language in an adverse action notice.
Illinois’ Wage Payment and Collection Act Amendments
The Illinois Department of Labor (IDOL) has adopted amendments to expense reimbursement rules. Section 9.5 of the Illinois Wage Payment and Collection Act (IWPCA) provides Illinois employees with expense reimbursement protections. Specifically, employees are entitled to reimbursement of “necessary expenditures and losses incurred by the employee within the employee’s scope of employment and directly related to services performed for the employer.” The IWPCA defines “necessary expenditures” as all reasonable expenditures required of the employee in the discharge of their employment and expenditures made to the primary benefit of the employer.
Employers must now maintain the following records for three years:
- All employee requests for reimbursement;
- Documentation showing approval or denial of reimbursement;
- Documentation showing actual reimbursement and supporting documents; and
- All policies regarding reimbursement.
Finally, employers should remember that any employee reimbursements owed but not paid to the employee during the course of the employee’s employment shall be included in the final compensation owed to an employee at the end of their employment.
Chicago Employee Protection Expansions
Chicago has expanded employee protections for bodily autonomy and criminal histories.
Bodily Autonomy
Employers are prohibited from:
- Discriminating or retaliating against an applicant or worker for their, their family members’ (or anyone living with the applicant or worker) decisions regarding reproductive or gender-affirming care;
- Accessing information about such decisions without the applicant’s or worker’s informed consent, which must be voluntary and in writing (and is subject to its own antidiscrimination and antiretaliation protections); and
- Requiring an applicant or worker to waive their or their family members’ right to make their own decision regarding reproductive or gender-affirming care.
Ban-the-Box Expansions
Chicago employers are prohibited from inquiring or using an arrest record as a basis for an employment decision.
However, employers may inquire or use a conviction record only if (1) there is a “substantial relationship” between one or more criminal offense(s) and the job sought or held or (2) the employer believes that the individual poses an unreasonable risk to property or the welfare of individuals or the general public. In determining whether a “substantial relationship”.
Notice:
If an employer decides that an applicant’s or employee’s conviction record may result in adverse action, the employer must provide written pre-and-post-adverse action notices and provide the individual at least five days to respond with evidence challenging the accuracy of the conviction record or evidence of rehabilitation.
If an employer decides that an applicant’s or employee’s conviction record may result in adverse action, the employer must provide written pre-and-post-adverse action notices and provide the individual at least five days to respond with evidence challenging the accuracy of the conviction record or evidence of rehabilitation.
If the employer still wants to terminate the individual’s employment, refuse to hire them or engage in another adverse employment action after receiving the evidence from the individual, the employer must provide written notice of:
- the employer's decision;
- the reasoning for the decision;
- any procedures to challenge the decisions; and
- state that the individual has the right to file a complaint with the Chicago Commission on Human Relations.
Chicago Training
Chicago employers are required to provide a minimum of one hour of sexual harassment prevention and bystander training annually to all employees, while managers and supervisors must participate in a minimum of two hours of sexual harassment prevention training annually. This training should be completed by June 30, 2023, if you did not conduct training anytime after July 1, 2022, per the city’s amended sexual harassment laws last year.
Paid Leave For Any Purpose
Governor Pritzker signed SB208, also known as the Paid Leave for All Workers Act, on March 13, 2023. Effective January 1, 2024, covered employees will be able to earn and use up to 40 hours of paid leave during a 12-month period “for any purpose” at their discretion. Employers that provide paid sick leave in compliance with the Chicago or Cook County ordinances will not be required to provide an additional 40 hours of paid leave. Also, employers that provide any type of paid leave policy that satisfies the minimum amount of leave required by the Act (at least 40 hours) are not required to modify the policy if employees are allowed to take the leave for any reason at their discretion.
Employers may require up to seven calendar days’ notice before taking paid leave, or if leave is unforeseeable, as soon as practicable. Employers will be required to post a notice at the workplace; the Illinois Department of Labor is expected to make this notice available on its website closer to the January 1, 2024, effective date, as well as provide additional guidance.
Stay tuned for updates in FranklyHR.
Hairstyle Discrimination Banned
Effective January 1, 2023, the definition of race under the Illinois Human Rights Act is amended to cover traits associated with race, including but not limited to hair texture and protective hairstyles such as braids, locks, and twists.
Tax Credit for Paid Organ and Bone Marrow Donor Leave
For income tax reporting periods beginning on or after January 1, 2023, an employer that allows all of its employees to take at least 30 days of paid leave to serve as an organ or bone marrow donor may take an income tax credit for each employee who takes leave. The credit must be taken within one year after the date the leave begins.
Employers are not required to provide leave for the purpose of organ or bone marrow donation, and employers are not prohibited from providing an unpaid leave of absence for organ or bone marrow donation. However, the employer must follow the law's specifications to be eligible for the credit.
Meal Break and Day of Rest Amendments
- Require employers to provide employees who work in excess of seven and one-half continuous hours an additional 20-minute meal break for every additional four and one-half continuous hours worked;
- Provide that employees must be allowed at least 24 consecutive hours of rest in every consecutive seven-day period rather than every calendar week;
- Require employers to post a notice summarizing the requirements of the Act and information about how to file a complaint;
- Increase the maximum penalties for employers that violate the Act from $100 per offense to $500 per offense for small employers and $1,000 for large employers (split between civil penalties payable to the Illinois Department of Labor and damages payable to the affected employee(s)); and
- Specify that a meal break does not include reasonable time spent using the restroom facilities; and
- Exempt from the day of rest requirements employees for whom work hours, days of work and rest periods are established through the collective bargaining process.
When Illinois updates its required notice, you will find it here.
Training for Certain Employees
SB 1600 has expanded required human trafficking training and appropriate protocols to report it to IL employers of restaurants and truck stops. Currently, training is required for employees of casinos, hotels, and motels. Effective January 1, 2022:
Timing and frequency of training - covered employees must complete the training within six months after beginning employment in a covered role with the lodging establishment and then every two years thereafter, if still employed by the lodging establishment.
Length of training - training must be at least 20 minutes in duration.
Content of training - the training program must include the following:
- A definition of human trafficking and commercial exploitation of children;
- Guidance on how to identify individuals who are most at risk for human trafficking;
- The difference between human trafficking for purposes of labor and for purposes of sex as the trafficking relates to lodging establishments; and
- Guidance on the role of lodging establishment employees in reporting and responding to instances of human trafficking.
The Department of Human Services provides a model curriculum and approved human trafficking training recognition program for use by employers.: IDHS: Lodging Services Human Trafficking Recognition Training (state.il.us)
Association Discrimination
Effective January 1, 2022, the Illinois Human Rights Act prohibits discrimination against an individual because of their association with a person with a disability.
Noncompete and Nonsolicitation Agreement Restrictions
Effective January 1, 2022, amendments to the Illinois Freedom to Work Act impose greater restrictions on the use of noncompete and nonsolicitation agreements and set criteria that must be met for such agreements to be valid and enforceable. Most significantly, the amendments impose earnings thresholds that must be exceeded for an employee to be subject to a noncompetition or nonsolicitation agreement.
Specifically, a noncompete agreement is prohibited unless an employee's actual or expected earnings exceed $75,000 per year. The threshold will increase in three phases to:
- $80,000 on January 1, 2027;
- $85,000 on January 1, 2032; and
- $90,000 on January 1, 2037.
A nonsolicitation agreement is prohibited unless an employee's actual or expected annual earnings exceed $45,000. This threshold will also increase in three phases to:
- $47,500 on January 1, 2027;
- $50,000 on January 1, 2032; and
- $52,500 on January 1, 2037.
The amended law also requires employers to give employees written notice of any requirement to enter into a noncompete or nonsolicitation agreement and provides for penalties and additional remedies in civil suits for employer violations.
Amendments to Vessa
Effective January 1, 2022, the Victims’ Economic Security and Safety Act (VESSA) is amended to:
- Cover victims of a crime of violence (e.g., homicide, sex offenses, bodily harm, harassing and obscene communications, and armed violence).
- Expand the definition of a covered family or household member.
- Permit employees to choose which document to submit in order to fulfill certification requirements.
- Prohibit employers from requesting or requiring an employee to submit more than one document.
- Require employers to keep in the strictest confidence any information provided to the employer under VESSA. Exceptions apply.
You can read the full text here.
Work Authorization Discrimination Banned
The Illinois Human Rights Act is amended to prohibit discrimination and harassment based on work authorization status.
Work authorization status means the status of being a non-US citizen born outside the United States and authorized by the federal government to work in the United States.
Under the law, it is a civil rights violation for an employer to refuse to honor an individual's work authorization based on the specific status that accompanies it. However, an employer is not required to sponsor any applicant or employee to obtain or modify work authorization status unless otherwise required by federal law.
Increased Penalties for Wage and Hour Violations
Governor Pritzker signed an amendment to the Illinois Wage Payment and Collection Act that increases the penalty for underpaying wages from 2% of the amount of the underpayment per month to 5%. Employers should be sure to pay employees correctly and keep the records to prove that they did so.
Chicago Amended Worker Protections
The Chicago City Council has passed Ordinance No. SO2021-2182.
A significant provision of the Ordinance is the establishment of Chicago’s first-ever wage theft protections. Under this provision, an employer is liable for wage theft where it fails to timely pay a covered employee. Wage theft includes the non-payment of any wages required for work performed, as well as paid time off (including Chicago paid sick leave) and contractually required benefits.
The Ordinance also modifies and expands the covered reasons for use of Chicago paid sick leave:
- For the purpose of receiving professional care, including preventive care, diagnosis, or treatment, for mental or behavioral issues, including substance use disorders;
- If a member of the employee’s family school, class, or place of care has been closed or a family member who is ill, injured, or ordered to quarantine, or to care for a family member receiving professional care, including preventive care, diagnosis, or treatment, for medical, mental, or behavioral issues, including substance use disorders;
- If the employee, or a member of the employee’s family is the victim of trafficking in persons as defined in Section 10-9 of the Illinois Criminal Code of 2012 (720 ILCS § 5/10-9); or
- If the employee obeys an order issued by the Mayor, the Governor of Illinois, the Chicago Department of Public Health, or a treating healthcare provider, requiring the employee to: (i) stay at home to minimize the transmission of a communicable disease; (ii) remain at home while experiencing symptoms or sick with a communicable disease; (iii) obey a quarantine order issued to the employee; or (iv) obey an isolation order issued to the employee.
Employers must post and provide a copy of the updated Chicago notice to employees before August 1, 2021. The notice is included here.
See Ordinance No. S02021-2182 for additional details and reach out to your FrankAdvice HR Consultant for guidance as needed.
Employee Sick Leave Act Amended
The Employee Sick Leave Act (ESLA) has been in effect since January 2017 and generally requires employers to permit employees to use their personal sick leave benefits to care for a family member’s illness, injury, or medical appointment. Now, employees can also use their benefits for a family member’s personal care under ESLA. Personal care includes activities to ensure that a family member’s safety or basic medical, hygiene, or nutrition needs are met. Personal care also means being physically present to provide emotional support to a family member with a serious health condition who is receiving inpatient or home care. You can learn more about the legislation here.
Chicago City Council Passes Vaccination Time Off Ordinance
On April 21, 2021, the Chicago City Council passed an ordinance for Chicago workers. Under the new ordinance, all employers are prohibited from taking adverse action – including termination, demotion, layoff or punitive schedule changes – against workers for taking time off to receive the COVID-19 vaccine. Additionally, employers cannot require workers to get vaccinated only during non-shift hours. If an employer requires their workers to receive the vaccine, they must pay them at their regular rate of pay for up to four hours per dose, and they cannot force workers to get the vaccine at times outside their regular shift. If an employer does not require their workers to get the vaccine, they must allow workers that have accrued paid sick leave to use that time to receive the vaccine if the worker chooses to use it.
There are no notice or posting requirements, but the Office of Labor Standards has published an infographic summarizing workers’ rights and employers’ responsibilities. The ordinance will automatically expire when the city commissioner of public health makes a written determination that the public health threat posed by COVID-19 has diminished to the point that the ordinance can be safely repealed. The commissioner or the Office of Labor Standards may issue additional guidance for employers. Read more about the ordinance here.
Amendments to Illinois Human Rights Act
The Illinois Human Rights Act has been amended to place restrictions on an employer's ability to consider criminal convictions during hiring and other employment decisions.
Specifically, an employer may only use a conviction record as a basis for an employment decision if, after considering six specific factors:
- The length of time since conviction
- The number of convictions that appear on the conviction record
- The nature and severity of the conviction and its relationship to the safety and security of others
- The facts or circumstances surrounding the conviction
- The age of the employee at the time of the conviction
- Evidence of rehabilitation efforts
The law also requires an employer to undertake an interactive assessment before finalizing a decision to take adverse action against an employee or applicant on the basis of a criminal conviction.
Amendments to Illinois Equal Pay Act
An employer with more than 100 employees in Illinois must obtain an equal pay registration certificate from the Illinois Department of Human Rights (IDHR) or certify that it is exempt from this requirement. Covered employers must obtain the initial certificate by March 23, 2024, and must recertify every two years. New businesses must obtain a certificate within three years of commencing operations.
To obtain the certificate, an employer must submit a signed statement to the IDHR certifying its compliance with certain antidiscrimination and equal pay laws and attesting to its procedures for ensuring pay equity.
Employers that fail to obtain the certificate as required or whose certificate is suspended or revoked may be subject to civil penalties. The law also includes antiretaliation and whistleblower protection provisions.
Amendments to Business Corporation Act
Corporations that file an EEO-1 report with the EEOC will be required to file “substantially similar” data with its annual corporate report filings to the Illinois secretary of state. These new requirements apply to corporate reports filed on or after January 1, 2023.
Unlike the confidential EEOC report, this Illinois filed data will be made publicly available. The Illinois secretary of state will publish the data on gender, race, and ethnicity of the corporation’s employees on its official website within 90 days of receipt of the properly filed annual report.
Equal Pay Act Registration Certificate
Illinois will require workforce information from certain employers starting this year. Private businesses with 100 or more employees will need to report certain info to the Illinois Department of Labor (IDOL). When it is time for your business to register, the IDOL will communicate with you, and then you will have at least 120 days to complete the Equal Pay Act Registration Certificate for your business.
September 2020
Employers Must Report Adverse Judgment and Administrative Rulings
The first annual report to the Illinois Department of Human Rights (IDHR) of employers’ information about adverse judgements or administrative rulings against them (sexual harassment or unlawful discrimination where the ruling is in the employee’s favor and against the employer) in the prior year is due October 31, 2020. Recently, the IDHR posted materials on its website explaining this obligation and provided a form to be completed when making annual disclosures. Access the materials here.
