Illinois Employment Law Updates Coming in 2026

12.17.25

Illinois employers will soon face several legal changes taking effect in 2026, including expanded leave rights, organ donation protections, AI parameters and new rules for workplace agreements.

Here are seven key updates employers should be aware of:

1. Employee Blood and Organ Donation Leave Act (Effective January 1, 2026)

Starting in 2026, the Employee Blood and Organ Donation Leave Act extends paid organ donation leave to part-time employees and clarifies compensation obligations. Eligible full- and part-time employees of employers with 51 or more employees may take up to 10 days of paid leave in a 12-month period to serve as organ donors.

For part-time employees, employers must calculate compensation based on the employee’s average daily pay over the preceding two months. Employees remain subject to employer approval processes and may be required to submit medical documentation supporting the donation.

2. Illinois Human Rights Act: Use of AI in Employment (Effective January 1, 2026)

Amendments to the Illinois Human Rights Act prohibit employers from using artificial intelligence (AI) in a manner that results in discriminatory outcomes and from relying on zip codes as a proxy for protected classes. The law applies to employers with one or more Illinois employees and requires notice when AI is used in connection with recruitment, advancement, training, discipline, discharge or other terms and conditions of employment.

Covered AI systems include machine-based tools that generate or inform predictions, decisions or recommendations, including generative AI platforms. The Illinois Department of Human Rights is expected to issue accompanying rulemaking to clarify notice and implementation standards.

3. Workplace Transparency Act (Effective January 1, 2026)

Amendments to the Illinois Workplace Transparency Act broaden what qualifies as an “unlawful employment practice” to include any violation under state or federal employment law, extending protections beyond discrimination and retaliation to wage, safety and labor-related issues.

The law also limits certain settlement and separation agreement provisions, including clauses that restrict employees from discussing workplace conditions or wages, shorten statutes of limitation or require application of non-Illinois law if doing so curtails employee rights.

Confidentiality clauses must be independently negotiated and cannot prohibit concerted employee activity. Employees also receive expanded rights to testify in administrative, judicial, legislative or arbitral proceedings.

4. Illinois Victims’ Economic Security and Safety Act (Effective January 1, 2026)

Illinois has expanded protections under the Illinois Victims’ Economic Security and Safety Act to clarify that employees may use employer-issued devices — including work phones, computers and tablets — to document domestic violence, sexual violence or other similar crimes.

Employers are prohibited from retaliating against employees for such use. This includes confiscating devices used to document abuse or blocking access to photos, videos or recordings stored on work equipment. The update recognizes that, in emergency or dangerous situations, a work-issued device may be the only tool available to an employee to protect themselves.

5. Illinois Department of Human Rights: Elimination of Fact-Finding Conferences (Effective January 1, 2026)

The Illinois Department of Human Rights (IDHR) will no longer automatically conduct fact-finding conferences for discrimination charges. While conferences may still occur if requested by both parties within 90 days (or if the IDHR determines one would be beneficial), the process is no longer mandatory.

As a result, written position statements and supporting documentation are expected to play a more significant role in investigations. The change coincides with new civil penalties ranging from $16,000 to $70,000, depending on an employer’s history of violations, increasing the stakes for how charges are handled at the investigatory stage.

6. Illinois Nursing Mothers in the Workplace Act (Effective January 1, 2026)

Illinois employers are currently required to provide reasonable break time and a private space for employees to express breast milk during the first year after childbirth. Beginning in 2026, these breaks must be paid at the employee’s regular rate, unless doing so would create an “undue hardship” as defined under the Illinois Human Rights Act.

The amendment also prohibits employers from requiring nursing employees to use their paid leave for required breaks or from reducing their compensation during required lactation breaks.

7. Family Neonatal Intensive Care Leave Act (Effective June 1, 2026)

Illinois will introduce a new category of job-protected leave for employees whose newborns are admitted to a neonatal intensive care unit (NICU). Employers with 16–50 employees must provide up to 10 days of unpaid leave (or the length of the NICU stay, if shorter). Employers with 51 or more employees must provide up to 20 days under the same parameters.

Leave may be taken intermittently in increments as small as two hours, and employers may verify the NICU stay without requesting confidential medical information. Employees remain entitled to continued health benefits during leave and reinstatement to the same or similar position upon return.

Ensure Your Workplace is Compliant in 2026

Aronberg Goldgehn’s Employment Law team provides proactive guidance to help employers navigate evolving state and federal statutory and regulatory requirements. The team advises on compliance, risk mitigation, policy development and workplace disputes, ensuring organizations are prepared for changes impacting their workforce and operations.

Learn more about how the firm supports clients across the full spectrum of Employment Law needs.