New Employment Laws Coming to Illinois in 2025

11.26.24

As 2025 approaches, Illinois businesses need to prepare for several new employment laws that will impact workplace policies and compliance efforts. Here's a snapshot of some of the significant changes:

1. Pay Transparency Requirements

Under the Illinois Equal Pay Act, employers with 15 or more employees must include pay scales and benefits in all job postings. This includes wages or salaries (or ranges), bonuses, stock options and other incentives reasonably expected in “good faith” based on pay scales, existing ranges, equivalent positions or budgeted amounts. Employers may hyperlink to a public webpage with this information. Additionally, they must notify current employees of promotion opportunities within 14 days of externally posting the position.
 
2. Expanded Employee Protections
The Illinois Human Rights Act (HRA) prohibits employment discrimination based on protected characteristics, now including “family responsibilities.” This refers to an employee's actual or perceived role in providing “personal care” to a “covered family member,” such as a child, spouse, parent, sibling or grandparent. “Personal care” involves meeting basic hygiene, nutritional or safety needs, transporting family members to medical appointments or offering emotional support during serious health conditions requiring care.

3. Personnel Records Access
Under the Illinois Personnel Records Review Act, employees can now request additional records from their employer, including:
a. Personnel documents used to determine qualifications for employment, promotion, compensation, benefits or disciplinary actions (with exceptions).
b. Legally binding employment-related contracts or agreements.
c. Employee handbooks provided to or acknowledged by the employee.
d. Written employer policies or procedures concerning employment qualifications, compensation or disciplinary actions.

Employers must comply with requests within seven working days and grant personnel records requests at least twice per calendar year.

4. Pay Stub Recordkeeping
Under the Illinois Wage Payment and Collection Act, employers must:
a. Maintain records of employee names, addresses and wages paid each payday.
b. Provide pay stubs for each pay period and copies to employees upon request:
i. For current employees, within 21 days of a written request, up to twice per year.
ii. For former employees, within 21 days of a written request, up to twice per year, provided the request is made within one year of separation.
 
If pay stubs are provided electronically, employers must offer departing employees a written record of all pay stubs from the prior year if electronic access is unavailable for at least a year post-separation. This offer must be made in writing by the employee's final pay period, with the response documented.

Employers must retain pay stubs for three years after issuance and post notices at workplaces specifying regular paydays and the time and place of payment.

5. Employment Verification Rules
Under the Right to Privacy in the Workplace Act, employers using Electronic Employment Verification Systems, such as the federal E-Verify program, must follow new protocols for addressing discrepancies in an employee’s employment verification:
a. Discrepancy Handling:
i. Provide the employee within seven business days:
1. The specific deficient document, the reason for the deficiency and the original document supporting the claim.
2. Instructions for correcting the deficiency if required by law.
3. An explanation of the employee’s right to have representation during related discussions, if allowed.
4. Details on additional rights under the Act.
b. Agency Notifications:
i. If notified by a federal or state agency (e.g., SSA or IRS) about a discrepancy, employers cannot take adverse action (e.g., re-verification) solely based on the notification.
ii. Notify the employee within five business days of receiving the notification, including details outlined in Section 13 of the Act.
c. I-9 Inspections:
i. Post notices in English and any common workplace language within 72 hours of receiving notice of an I-9 or employment record inspection.
ii. Additional requirements for I-9 inspections are detailed in Section 13 of the Act.
 
6. Freedom from Meetings Relating to Religion or Politics
The Illinois Worker Freedom of Speech Act prohibits employers from penalizing or threatening employees who refuse to attend employer-sponsored meetings about religious or political matters.

7. Updated Child Labor Restrictions
The Illinois Child Labor Law safeguards minors under 16 in the workplace. It allows 14- and 15-year-olds to work outside school hours, with school-issued employment certificates, except at specific work sites. Minors cannot work more than 18 hours per week during school sessions, 40 hours per week when school is out, or more than eight hours in a 24-hour period. Restrictions also apply to work hours depending on the time of year.

This is not intended to be an exhaustive list of all new employment laws and regulations impacting Illinois employers. If you have questions about the latest laws and regulations, please contact Amy M. Gibson or the Aronberg Goldgehn attorney with whom you normally work.



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