9 Key Employment Law Updates Illinois Employers Must Know in 2025

As we move into 2025, Illinois employers must be prepared for a series of significant changes in employment law. Illinois lawmakers were busy in 2024, enacting nine new laws that take effect on January 1, 2025.

These changes will impact various aspects of employment, including personnel records, pay stubs, whistleblower protections, non-compete agreements, and more. Here's a rundown of the most important developments Illinois employers need to know.

The Illinois Personnel Record Review Act (IPRRA) now requires employers with five or more employees to permit employees (including former employees) to review, copy, or obtain copies of their personnel records twice a year. The law has been amended to expand the list of documents that must be provided and clarify which documents need not be disclosed, such as trade secrets and client lists.

Employers must respond to these requests within seven days, with a potential seven-day extension. A private right of action now allows employees to sue if the Illinois Department of Labor (IDOL) fails to resolve the matter within 180 days.

2. Expanded Pay Stub Requirements

The Illinois Wage Payment and Collection Act (IWPCA) has been amended to clarify that pay stubs must be provided to employees for each pay period. Employers are now required to retain pay stubs for at least three years, even for terminated employees.

Employees and former employees are entitled to request copies of their pay stubs within 21 calendar days, and employers must maintain records of any offers to provide pay stub records if an electronic system is used.

3. Whistleblower Protection Expansion

The Illinois Whistleblower Act (IWA) has been amended to protect employees from retaliation even if they merely threaten to disclose information about unlawful employer activity.

The new law clarifies that whistleblower protection applies to employees acting on a "good faith belief" that their employer's actions violate the law or pose a danger to public health or safety. The amendments also expand enforcement provisions, offering remedies like back pay, front pay, and liquidated damages up to $10,000.

4. Additional Restrictions on Non-Compete & Non-Solicitation Agreements

Two key amendments to the Illinois Freedom to Work Act (IFWA) take effect in 2025. One bans non-compete agreements for licensed mental health professionals who provide services to veterans and first responders.

Another prohibits non-compete and non-solicitation agreements with construction workers, regardless of whether they are part of a collective bargaining agreement (CBA). Employers in these fields should review and revise their restrictive covenants accordingly.

5. Protections for Employees with Family Responsibilities & Reproductive Health Decisions

The Illinois Human Rights Act (IHRA) has been expanded to protect employees from discrimination based on "family responsibilities." This includes providing personal care to family members who need assistance with medical, hygiene, nutritional, or safety needs.

Employers are prohibited from discriminating against employees for making decisions regarding reproductive health, including contraception, fertility care, and pregnancy-related decisions.

6. New Restrictions on the Employment of Minors

The Illinois Child Labor Law has been replaced with the Child Labor Law of 2024, which imposes stricter rules for employing minors under 16. Employers must obtain an employment certificate for each minor, maintain detailed records, and adhere to strict limits on work hours and conditions.

Minors are prohibited from working during certain hours and must be supervised by someone at least 21 years old. Employers must also ensure minors are not employed in hazardous industries, such as factories or cannabis shops.

7. E-Verify & Work Authorization Discrepancies

Illinois employers are not required to use the E-Verify system unless mandated by federal law. However, if an employer uses E-Verify and detects discrepancies in an employee's employment information, they must follow specific procedures to notify the employee and allow them to correct the issue.

Employers must also refrain from taking adverse actions based solely on discrepancies reported by federal or state agencies.

8. Pay Transparency & Job Postings

The Illinois Equal Pay Act (IEPA) has been amended to require employers with 15 or more employees to include pay scale and benefits information in job postings. This includes disclosing the wage range and a description of benefits like bonuses and stock options.

Employers must also make promotion opportunities known to current employees within 14 days of posting external job openings. Employers who fail to comply could face penalties of up to $10,000.

9. Captive Audience Law

Illinois has joined other jurisdictions in banning "captive audience meetings" through the Worker Freedom of Speech Act (WFSA).

Employers are prohibited from retaliating against employees who refuse to attend employer-sponsored meetings discussing the employer's political or religious views. While the law is currently under litigation regarding its constitutionality, employers should be mindful of this new restriction.

What Illinois Employers Should Do Now?

To stay compliant with these changes, Illinois employers should:

• Review and update policies on personnel records and pay stubs, ensuring compliance with new disclosure and retention requirements.
• Train HR staff on the expanded whistleblower protections and the new procedures for handling personnel record requests.
• Evaluate non-compete and non-solicitation agreements to ensure they align with the new restrictions.
• Update employee handbooks to reflect changes in family responsibilities and reproductive health protections.
• Review practices for employing minors to comply with the new child labor laws.
• Ensure pay transparency in job postings and promote internal opportunities in line with IEPA requirements.

Conclusion

For more information about these laws and their potential impact on your business, please don’t hesitate to contact us.

Our team is here to help you navigate these changes and ensure your organization is fully prepared to meet its legal obligations in 2025 and beyond.