Just like with 2025, employers will need to update their Handbooks and policies to accommodate the new laws
As autumn begins to settle in across Illinois, it’s not just the leaves that are changing—so is the legal landscape for employers and workers. With several new employment laws set to take effect on January 1, 2026, fall is the critical window for organizations to review policies, update handbooks, train staff, and ensure full compliance before the new year begins.
From expanded leave entitlements to stricter pay transparency requirements, these changes aren’t just technical—they carry real consequences for businesses that fail to prepare. Waiting until December could mean rushed decisions, missed deadlines, or costly penalties.
In this blog, we’ll break down the most impactful updates, explain what they mean for your workplace, and offer practical steps to get ahead—so when the ball drops on New Year’s Eve, your business isn’t scrambling to catch up.
Let’s explore the legal landscape and what it means for the future of work in Illinois.
Nursing Mothers in the Workplace Act
On August 1, 2025, Governor J.B. Pritzker signed into law an amendment to the Nursing Mothers in the Workplace Act, an Act which requires employers provide reasonable break time to an employee who needs to express breast milk each time the employee has the need (with some exceptions).
The amendment, which went into effect immediately, requires employers to pay employees for these breaks at their regular rate of compensation. Employers cannot require employees to use paid leave during the break time or reduce the employee’s compensation during the break time in any other manner.
Employers will need to change their timekeeping practices to eliminate the reduction in hours by nursing mothers.
What do businesses need to do?
Employers should review their nursing policies to ensure they provide paid leave and update their Employee Handbooks accordingly.
Equal Pay Act
On June 30, 2025, Governor Pritzker signed into law changes to the Equal Pay Act (EPA). Effective on signing, the amendment removed references to the federal EEO-1 report, which previously was an option for employers providing certain required information to the Illinois Department of Labor. Now, any business subject to the EPA (i.e. with 100+ employees in Illinois), not just employers who are required to complete EEO-1 reports, must submit a list of all employees during the past calendar year, separated by gender, race, and ethnicity categories.
The Equal Pay Compliance statement must also include 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.” This was changed from the previous reference to “the major job categories in the Employer Information Report EEO-1.” “Job category” is now defined as one of the following: 1) executive/senior-level officials and managers, 2) first/mid-level officials and managers, 3) professionals, 4) technicians, 5) sales workers, 6) administrative support workers, 7) craft workers, 8) operatives, 9) laborers and helpers, and 10) service workers.
What do businesses need to do?
Prepare for these changes by tracking the wages of employees in the above categories and continually assessing their pay practices to ensure compliance with the Act.
Family Military Leave Act
On August 1, 2025, Governor Pritzker signed into law changes to the Family Military Leave Act, now to be called the Military Leave Act. Effective on signing, the amendment also adds the requirement for employers who have 51 or more employees to provide paid leave for anyone performing “funeral honors details.”
- Qualifying employees may use up to 8 hours per calendar month, up to 40 hours in a calendar year (or more if the employer authorizes) to engage in funeral honors details.
- An employee qualifies for this leave if the employee is trained to participate in a funeral honors detail at the funeral of a veteran; and is either (1) a retired or active member of the armed forces, or (2) is an “authorized provider” or registered member of an organization that is an authorized provider of such funeral honors details.
- The employee must be paid at their regular rate for this leave.
- The employee must give reasonable notice, as is practicable for the leave.
- Employers cannot require an employee to first exhaust vacation leave, personal leave or any other leave including sick or disability leave.
- An employer may request 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.
- An employer may deny a request for leave if granting the request would, at an independent living facility, assisted living facility, nursing home facility, or other similar congregate care facility or at a facility providing 24/7 care, reduce staffing levels to below the established minimum or impair the safe and efficient operations of the facility.
- An employer shall not deny leave under this subsection if doing so violates the terms of an applicable collective bargaining agreement.
The changes also incorporated a number of new definitions, among them:
“Funeral honors detail” means an honor guard detail provided for the funeral of any veteran in compliance with 10 U.S.C. 1491 and any associated federal regulations. A “funeral honors detail” consists of at least 2 members of the U.S. Armed Forces, one of whom is from the deceased veteran’s service branch, with the remainder of the detail consisting of members of the armed forces, whether retired or not, or members of an authorized provider. The “funeral honors detail” performs a ceremony at the funeral that includes the folding of a United States flag and presentation of the flag to the veteran’s family and the playing of “Taps”.
“Authorized provider” means an individual or group recognized by the armed forces, who are not service members or employees of the United States government and who augment the uniformed members of a military funeral honors detail. “Authorized provider” may include, but is not limited to, veterans service organizations, trained volunteers of the Reserve Officer Training Corps, honor guards, and other appropriate individuals and organizations that support the rendering of military funeral honors.
What do businesses need to do?
You guessed it, all employers need to update the policies to use the correct name of the Act. Employers with 51+ employees also need to add Funeral Honors Detail leave policies.
Illinois Human Rights Act
While businesses will applaud the removal of the statutory obligation for the Illinois Department of Human Rights to hold a fact-finding conference during charge investigations has been lifted (is now at the Department’s discretion), the new civil penalties will not be as welcome. Fortunately, this amendment goes into effect on January 1, 2026, and is not retroactive, even for pending charges.
More details:
- A fact-finding conference will only be held if both parties submit a written request within 90 days of the charge filing date and the Department has not already issued its report.
- The Department is now empowered to levy a civil penalty against employers found in violation of the Act, in addition to existing monetary remedies (making the employee whole and covering attorneys’ fees and costs). Civil penalty caps:
$16,000 for first-time violators
$42,500 for employers with one prior violation in the past five years
$70,000 for employers with two or more violations in the past seven years
What do businesses need to do?
This one does not require a change to your policies, but it’s important for all employers to be aware of the new civil penalties that can be imposed for violations.
Victims’ Economic Security and Safety Act
Effective January 1, 2026, this amendment prohibits employers from punishing or discriminating against an employee who uses employer-issued equipment to record a crime of violence against the employee or a member of their family or household; and requires that the employer grant the employee access to any such recording.
What do businesses need to do?
Employers should review their policies to see if updates are needed.
Employee Blood and Organ Donation Leave Act
Effective January 1, 2026, this amendment extends eligibility for paid leave for organ donation to part-time employees, in addition to full-time employees. For a part-time employee using leave to serve as an organ donor, the employer shall calculate the daily average pay the part-time employee received during his or her previous 2 months of employment and compensate the part-time employee in the amount of the daily average pay for the leave days used.
What do businesses need to do?
You guessed it, all employers need to update their policies to provide organ donation leave to all employees, not just full time.
Neonatal Intensive Care Leave Act
This new law requires that starting January 1, 2026, employers with 16 or more employees must allow employees to take a certain amount of unpaid leave (depending on the size of the employer) if they have a child in a neonatal intensive care unit.
- 16 to 50 employees provide 10 days of unpaid leave
- employers with 51 or more employees provide 20 days of unpaid leave
What do businesses need to do?
Once again affected employers need to update their policies.
Unemployment Insurance
This amendment which goes into effect on January 1, 2026, allows individuals with claims from December 28, 2025, to December 24, 2028, to receive unemployment insurance if they leave a job due to a mental health disability. It also gives the Illinois Department of Employment Security broader powers to recover unemployment insurance benefits for which a recipient is ineligible.
Workplace Transparency Act
Bill Number: HB3638
Effective January 1, 2026, amendments to the Workplace Transparency Act will expand protections for employees regarding confidentiality agreements, concerted activity to address work-related issues, no-rehire provisions, and damages and attorney’s fees incurred defending an action for breach of confidentiality agreements pursuant to this Act. We will explore this significant change in more detail in a future article.
What do businesses need to do?
Stay tuned for more information!
Final Thoughts: Don’t Wait Until Winter
The employment law updates coming to Illinois in 2026 aren’t just legal fine print—they’re a call to action. Fall offers a strategic window to assess your policies, educate your teams, and align your practices with the new requirements before they become enforceable. Whether you’re a business owner, executive or HR leader, proactive planning now can prevent reactive scrambling later. Staying informed and ahead of the curve isn’t just smart—it’s essential for building a workplace that’s compliant, fair, and future-ready.
If you have questions about the content of this blog or employment law needs, contact Navigant Law Group, LLC at (847) 253-8800 or email us at hello@navigantlaw.com.
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