Another year, another set of compliance challenges for Illinois employers. Beginning in 2026, new statutory requirements and expanded employee protections will reshape key aspects of the workplace. Understanding what has changed – and what hasn’t – will be critical for employers looking to stay compliant while maintaining operational flexibility. Here is a brief summary of what is changing for 2026.
Illinois Human Rights Act: Multiple changes are coming to the Illinois Human Rights Act (“IHRA”), which prohibits unlawful discrimination, harassment and retaliation in employment. It also governs the work of the Illinois Department of Human Rights (“IDHR”) that accepts and investigates charges of discrimination under the IHRA. Updated investigative procedures will go into effect in 2026 as well as new monetary policies.
- Fact-finding conferences are no longer mandatory. These conferences are no longer automatically scheduled and the IDHR will hold them only when it deems necessary or when the parties file a joint request in writing within 90 days of a charge being filed. However, the parties must agree to allow the IDHR an additional 120 days to complete its investigation.
- New civil penalties may be imposed on employers “to vindicate the public interest.” Penalties can rise to $16,000 per act per aggrieved party for a first violation, up to $42,500 for a second violation within five years and, if two or more violations within seven years, penalties up to $70,000 may be assessed. The Illinois Human Rights Commission, the adjudicative body under the IHRA, has the authority to impose these penalties. In addition, rather than accruing to the complaining party, they accrue to the State.
- Use of zip codes in employment decisions as a proxy for any protected class is now prohibited. The legislature noted that employers could use zip codes to exclude a protected class (citing the highly racially segregated nature of Chicago and other cities in Illinois as an example), through a filter in recruitment software. As of 2026, using zip codes in this way, or in any discriminatory manner in employment, will be illegal.
- Use of artificial intelligence (AI) in employment decisions must be disclosed to employees and job seekers. Employers are prohibited from using AI in employment decisions if such use results in discrimination against a protected class under the IHRA. This prohibition covers the entire employment process, from recruitment to promotion to discipline to termination. Employers should keep in mind that even if the discriminatory effects are unintended, if discrimination occurs because of an employer’s use of AI, liability may attach.
Illinois Right to Privacy in Workplace Act: The Illinois legislature amended the law and Governor J.B. Pritzker signed the bill on December 12, 2025, becoming effective immediately. It provides protections for both private and public employees and prohibits employers from taking adverse action (i.e. suspension or termination) based solely on federal agency notice regarding taxpayer identification numbers or other identifying documents. It also requires an employer to provide notice to employees and authorized representatives within five (5) business days of receiving such notice from a federal agency regarding taxpayer identification numbers or other identifying documents. In addition, eligible labor organizations and non-profits may bring civil actions against non-compliant employers as “interested parties.” Violations range from $100 to $1,000 for each violation while repeated violations can result in $1,000 to $5,000 fines. Courts also may impose mandatory reinstatement, back pay and up to $10,000 in penalties for wrongful job loss as well as attorney’s fees. An employer may seek to have the penalties waived if they acted in good faith reliance after seeking guidance from the Illinois Department of Labor or the Department of Homeland Security or if there was an honest administrative error without an impact on the employee’s status or wages.
Workers’ Rights and Worker Safety Act: ensures that if any federal standard under the Occupational Safety and Health Act (“OSHA”) is amended to reduce worker protections, Illinois will adopt standards that will maintain employee safety and rights in effect prior to any federal amendments.
Paid Breaks for Nursing Mothers: up to 30 minutes paid breaks for nursing mothers are now required and must be compensable at the employee’s regular rate of compensation, unless doing so would create an “undue hardship” for the employer, as defined by the IHRA. An employer must allow a nursing mother these paid breaks for up to one year after the child’s birth and cannot require the nursing employee to use accrued paid time off (such as sick leave or vacation time).
Employee Blood and Organ Donation Leave Act: extends paid leave requirements to part-time employees who are organ donors, allowing up to 10 days of paid leave in any 12 month period. Pay for those days will be at the employee’s average daily pay rate over the previous two months.
Documenting domestic violence, or any other form of violence against the employee or a family member, on a work device (i.e. phone, tablet or computer) is protected from discipline by the employer. Employers must grant access to employees to such documentation and communication stored on the devices. The employer is also prohibited from retaliating against the employee for such use, which can include confiscating devices used to document abuse, or blocking access to photos, videos or recordings stored on work equipment.
Family Neonatal Intensive Care Leave Act (“NICLA”): effective June 1, 2026, requires an employer grant unpaid leave for parents when their child(ren) is in the neonatal intensive care unit (“NICU”). Employers with sixteen (16) to fifty (50) employees must provide 10 days of leave while employers with more than fifty (50) employees must provide up to twenty (20) days. Leave under this act is separate from any leave taken under the Family and Medical Leave Act (“FMLA”) and may be taken only after exhaustion of FMLA leave. This leave may be taken intermittently or continuously. Employers are free to establish a minimum increment of time in which leave may be used, provided it is not more than two hours. NICLA also prohibits retaliation against employees who utilize this leave or otherwise support another employee to do so. Penalties for violation can accrue up to $5,000 per affected employee. Additional guidance from the Illinois Department of Labor is expected.
In 2026, employers operating in Illinois face additional obligations from multiple changes in Illinois relating to employment practices. These changes reflect a growing emphasis on employee rights, workplace safety, and transparency in employment practices. Employers must be proactive in reviewing their policies, training and internal practices to ensure compliance with these updated obligations.
The St. Louis employment attorneys at McMahon Berger have been representing employers across the country in labor and employment matters for over sixty years and are available to discuss these issues and others. As always, the foregoing is for informational purposes only and does not constitute legal advice regarding any particular situation as every situation must be evaluated on its own facts. The choice of a lawyer is an important decision and should not be based solely on advertisements.
