Illinois enacts new employment laws effective January 1, 2026

Brad Close, President
Brad Close, President - National Federation of Independent Business
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A series of new employment laws will take effect in Illinois on January 1, 2026, impacting various aspects of the workplace such as leave policies, payroll programs, unemployment benefits, and employment decisions.

One of the new measures, HB 1278 (Didech), amends the Victims’ Economic Security and Safety Act. It prohibits employers from discriminating against employees who use employer-issued equipment to record incidents of domestic violence, sexual violence, gender violence, or other crimes committed against themselves or their family members. The law also requires employers to provide access to any related recordings or digital communications on the device.

HB 1616 (Syed) expands the Employee Blood and Organ Donation Leave Act to include part-time employees who donate organs. This provision applies to employers with at least 51 employees. Employees must obtain approval from their employer before using this leave.

Under HB 3094 (Mah), amendments to the Transportation Benefits Program Act exempt union contractors from program requirements and extend benefits to part-time workers.

HB 3200 (Hoffman) introduces a three-year pilot program under the Unemployment Insurance Act for individuals who voluntarily leave work due to a mental-health disability certified by a licensed psychiatrist. The Department of Employment Security is also granted authority to pursue liens against applicants who have fraudulently received funds.

Changes under HB 3638 (Williams) expand the Workplace Transparency Act to cover labor-law issues and allow employees to recover consequential damages if violations occur.

HB 3773 (Andrade) amends the Illinois Human Rights Act by making it a violation for employers to use artificial intelligence in employment decisions that discriminate against protected classes. The amendment includes notification requirements for employers regarding AI use.

SB 212 (Fine) updates language in the Nursing Mothers in the Workplace Act, clarifying that employers cannot require nursing mothers to use paid leave during breaks taken for expressing breast milk.

Finally, SB 2487 (Johnson) adds a civil penalty under the Human Rights Act for businesses found in violation, intended “to vindicate the public interest.”

For further information or questions about these changes, individuals are encouraged to contact the NFIB Illinois office.



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