2024 Illinois Labor & Employment Year End Review

Chicago, Ill. (January 16, 2025) - It has been a whirlwind of new Illinois employment laws in 2024. With several key updates taking effect on January 1, 2025, employers should take note of the following developments to stay compliant:

Expansion of the Illinois Whistleblower Act (IWA)

Starting January 1, 2025, whistleblowers in Illinois have  extra protection. Employees may now bring a claim for retaliation based on a report to an internal supervisor, manager, officer, or board member. Prior to the amendment, actions under the IWA were limited to reports to law enforcement or a government agency or court. The amendment also adds an expanded definition for “adverse employment action” to the statute. Under the IWA, an adverse employment action now means one that a reasonable employee would find materially adverse, i.e., if it could dissuade a reasonable employee from disclosing or threatening to disclose information protected by the statute.

Pay Stub Retention and Additional Requirements 

Effective January 1, 2025, the Illinois Wage Payment and Collection Act (IWPCA) has been amended to require employers to keep pay stubs for three years after the date of payment, regardless of whether an employee’s employment ends during that period. Employers also must provide electronic or hard copies to employees upon request within 21 days. Noncompliance could result in a $500 fine per violation in addition to other penalties provided for by the IWPCA. 

Finally, the amendments clarify that the definition of  “paystub” means a document reflecting an employee’s hours worked, overtime hours, total wages, total deductions, and rate of pay during a pay period. Each paystub must show year-to-date wages and deductions.

Expanded Illinois Human Rights Act (IHRA) 

The 2025 IHRA updates include:

• Extended Filing Deadlines: The length of time to file a charge has more than doubled.  Employees now have two years (up from 300 days) to file a charge under IHRA.
   
• New Protection for Reproductive Health Decisions: Protects employees from discrimination or harassment based on reproductive health decisions like contraception, fertility care, and pregnancy management.
   
• New Protection for Family Responsibilities: Protects against discrimination and harassment for those defined as caregivers having family responsibilities under the IHRA, but does not require accommodations.
   
• AI Restrictions: Effective January 1, 2026, the IHRA will ban AI tools that discriminate against protected classes or use zip codes as a proxy for bias in hiring, promotions, or other decisions. Employers must also notify workers when AI is in play.
   
• Illinois Personnel Record Review Act: Starting January 1, 2025, the definition of a “personnel record” has been broadened significantly to include items such as employment contracts or agreements, employee handbooks, and employment policies or procedures. Employees can request personnel records twice a year, and employers must respond within seven days (with extensions allowed for good cause) or face penalties. Additionally, employees must now submit written requests for their personnel records, which can be done via email or text message. The Act specifies to whom the request should be made and requires employees to specify which records they want or to request all records allowed under the Act.

Illinois Worker Freedom of Speech Act (WFSA) 

Effective January 1, 2025, employees are not required to attend employer-sponsored meetings or otherwise receive or listen to communications that discuss the employer’s stance on religious or political matters, including whether to join or support any labor organization. Key points for employers include:

• Mandatory Meeting Restrictions: Employees cannot be forced to participate in meetings that convey the employer’s views on religious or political topics.
   
• Protection Against Retaliation: Employers are prohibited from taking any adverse actions against employees who choose not to attend these meetings. Additionally, employers cannot offer incentives to employees who do attend.
   
• Employee Rights: The Act provides employees with a private right of action. This includes the availability of injunctive relief, back pay, and attorney’s fees. The Illinois Department of Labor also may impose civil penalties on employers for violations.
   
• Notice Requirement: By January 30, 2025, employers must post a notice of employee rights under the WFSA in the same location as other mandatory workplace notices.

Illinois Freelance Worker Protection Act (FWPA)

Effective July 1, 2024, Illinois provided new protections for freelance workers, also known as independent contractors, for contracts taking effect after that date.

• Who’s Covered? The law applies to freelance workers who provide services worth at least $500 over a 120-day period. Exclusions include workers in the construction industry, governmental entities (like school districts), and individuals classified as employees under Section 10 of the Employee Classification Act.
   
• Key Protections: Freelancers are entitled to written contracts that clearly outline important details such as the method of compensation and the name of the hiring entity. Freelancers must be paid in full by the due date specified in the contract. If no due date is mentioned, payment must be made within 30 days of completing the services.

Biometric Privacy Update 

As of August 2, 2024, the Illinois Biometric Information Privacy Act (BIPA) was clarified to limit damage calculations to one violation per individual for the repeated collection or disclosure of the same biometric data. The statute also clarified that an electronic signature on a BIPA consent is acceptable, which is consistent with the Illinois Uniform Electronic Transactions Act. Please see our prior alert for a full discussion of these clarifications.

Pay Transparency

Starting January 1, 2025, employers with 15+ employees must include salary and benefits information in Illinois job postings and notify current employees of promotion opportunities within 14 days of such posting. Employers must also retain job posting records and pay scales for not less than five years. Violations could lead to penalties from the Illinois Department of Labor.

Space Force Leave

Effective January 1, 2025, the Illinois Service Member Employment and Reemployment Rights Act (ISERRA) will cover members of the United States Space Force, recognizing it as a branch of the Armed Forces, requiring updates to military leave policies.

E-Verify Changes 

Starting January 1, 2025, employers must adhere to new compliance requirements for E-Verify issues under amendments to the Right to Privacy in the Workplace Act.  The amendments provide additional protections for those flagged by the federal E-Verify system as having discrepancies in their identification.

Dispute Resolution:

• Document Disclosure: If there is a dispute over an employee's verification information, employers must provide the specific document found to be deficient and a description of the reason for the dispute. If requested, the employer must give the employee the original document(s) that forms the basis for deficiency within seven business days.
   
• Correction Instructions: Employers must give clear instructions on how the employee can correct the deficiency.
   
• Employee Rights: Employers must explain the employee's rights related to the dispute and inform them of their right to have representation present during meetings about the E-Verify dispute, if allowed under an E-Verify Memorandum of Understanding (MOU).

Additional Protections:

• Work Authorization Discrepancies: When a federal or state agency informs the employer of a work authorization discrepancy, the employer cannot take adverse action against the employee. The employer must notify the employee of the discrepancy within five business days and provide a copy of the original notice from the agency within seven business days. Employees are also allowed to have a representative present during any related meetings.

Inspection Notifications:

• Government Inspections: If an employer receives notice from a government entity that their E-Verify information is being inspected, the employer must notify current employees and their representatives within 72 hours. This notice must be provided in both English and other languages commonly used in the workplace.

Verification Requirements:

• No Extra Hoops: Employers cannot impose stricter verification requirements than those mandated by federal law.

For more information about these developments, contact the author or editor of this alert. Visit Lewis Brisbois' Labor & Employment Practice page for more information about our capabilities in this area.

Author:

Rachel Mahoney, Associate

Editor:

Mary A. Smigielski, Partner and Midwest Regional Chair of Labor & Employment Practice