From the requirement of pay scales and benefits in job postings to new protected classes under the Illinois Human Rights Act, 2025 promises to be yet another year of significant change for Illinois employers. While you determine how to navigate the new Illinois employment laws taking effect this year (and next!), review this checklist and keep it handy as a reference. Though we haven’t included every new law, we’ve focused on the key ones that our clients need to know now to help best prepare you for the year ahead.
Key Illinois Change | Employer To-Dos | |
(1) | “Pay Scales and Benefits” are required in job postings | Effective Jan. 1, 2025, HB 3129 requires Illinois employers with 15 or more employees to include the “pay scale and benefits” in any job posting for positions in Illinois or reporting to Illinois. For details on the law’s requirements, see our prior blog The Illinois Department of Labor (IDOL) recently published FAQs on the law. The FAQs help to clarify: “Pay scale and benefits” specifics The FAQs state a “pay scale” must include a range and cannot be open-ended (e.g., “$30,000 and up” is not acceptable). And pay scales must differentiate pay for Illinois applicants if pay varies by location. In addition, employers must describe the nature of benefits provided, but are not required to give specific details or dollar values. According to the FAQs, IDOL will provide more guidance on “benefits” in the coming months. Posting not required for only sporadic visits Employers without operations in Illinois do not need to include the pay scale and benefits for a position unless they had a reason to know or reasonably foresee the work would be done at least in part in Illinois, and the posting requirement does not apply to positions with only occasional or sporadic visits or contact with Illinois. Recordkeeping obligations Employers must keep pay scale, benefits records, and job postings for at least 5 years. The FAQs provide a non-exhaustive list of records that are likely to be required – such as when and how job postings were published, when and how pay and benefits were determined, and the good-faith reason for a change if the employer ultimately offered different pay and benefits than those in the job posting. | Review the law and FAQs and if you haven’t already done so, consult with counsel to determine your implementation plan. Post the required poster released by IDOL (available on the Illinois Department of Labor website here). Decide on best practices for choosing pay ranges for posting. Be thoughtful of how to best define “benefits,” and keep watch for additional guidance and examples from IDOL. Consider a pay equity audit to determine disparities and possible remedial measures. Your Baker McKenzie employment attorney can help. |
(2) | The state and Cook County minimum wage is $15 | As of Jan. 1, 2025, the Illinois state minimum wage increased to $15 per hour (for employers with four or more employees), $9 per hour for tipped employees, and $13 per hour for employees 17 years old and younger who work less than 650 hours in a calendar year (those who work 650 hours or more are entitled to the $15 per hour minimum wage). This move marks the final hike in Governor Pritzker’s 2019 legislation scheduling minimum wage increases from $9.25 per hour in 2020 to $15 per hour in 2025. The Cook County minimum wage also increased on Jan. 1, 2025 (for employers with four or more employees) to $15 per hour, and to $9 per hour for tipped employees, matching the state’s minimum wage. | Confirm with HR, payroll, and accounting that all necessary changes have been made. Post the required updated “Your Rights Under Illinois Employment Laws” poster (available on the Illinois Department of Labor website here), which includes information on the new minimum wage, and the Cook County Minimum Wage Ordinance Notice to Employees (available on Cook County’s website here). Check for higher minimum wages required by local ordinance. For example, as of July 1, 2024, the Chicago minimum wage for employers with four or more employees is $16.20 per hour, and $11.02 per hour for tipped employees. Chicago’s minimum wage increases annually on July 1 under the Chicago Minimum Wage Ordinance. Monitor the City of Chicago Office of Labor Standards website for updates. |
(3) | Captive audience meetings are banned | Effective Jan. 1, 2025, the Illinois Worker Freedom of Speech Act (SB 3649) prohibits adverse employment actions against an employee for declining to: (i) Attend or participate in an employer-sponsored meeting; or (ii) Listen to or receive communications from the employer (or the employer’s agent, representative, or designee) if the meeting or communication is about the employer’s opinion on religious or political matters – including unionization. | Make sure meetings on religious or political matters are voluntary. Clearly inform employees they can opt out without repercussions. Train HR and managers/supervisors not to make these meetings mandatory. Keep watch of this trend. In November 2024, the NLRB banned captive audience meetings, and several other states passed laws last year banning captive audience meetings, including California, Hawaii, Vermont and Washington. |
(4) | Family responsibilities and reproductive health decisions are new protected classes under the IHRA – and the statute of limitations for filing a discrimination complaint under the IHRA is extended | Effective Jan. 1, 2025, employers are prohibited from discriminating against employees on the basis of “family responsibilities” (under HB 2161) and “reproductive health decisions” (under HB 4867). Both are now protected classes under the IHRA. Family responsibilities “Family responsibilities” means an employee’s actual or perceived provision of personal care to a family member. “Personal care” and “family member” both have the meaning given to the terms under the Employee Sick Leave Act. “Personal care” involves activities to meet a family member’s basic medical, hygiene, nutritional, or safety needs, or providing transportation to medical appointments. It also includes being present to offer emotional support to a family member with a serious health condition receiving inpatient or home care. A “family member” includes an employee’s child, stepchild, spouse, domestic partner, sibling, parent, in-laws, grandchild, grandparent, or stepparent. Reproductive health decisions “Reproductive health decisions” are a person’s decisions regarding the person’s use of contraception; fertility or sterilization care; assisted reproductive technologies; miscarriage management care; healthcare related to the continuation or termination of pregnancy; or prenatal, intranatal, or postnatal care. Statute of limitations for a discrimination complaint under the IHRA extended Also effective Jan. 1, 2025, under SB 3310, the statute of limitations for filing a complaint of discrimination under the IHRA with the Illinois Department of Human Rights has been extended from 300 days to 2 years. | Note that the amendments do not specifically impose any new leave or accommodation requirements on Illinois employers, but other laws like the FMLA and paid leave laws in Illinois, Cook County and Chicago may provide job-protected leave for individuals under the new protected classes. Train HR, managers/supervisors, and employees on the new protected classes, including for purposes of accommodation and leave requests. Update anti-discrimination and anti-harassment policies, including in handbooks, to incorporate the new protected classes, and train employees on these policies regularly to reduce the likelihood of discrimination claims. Consult with counsel when facing employee discrimination claims. |
(5) | Employers must provide more documents under the Personnel Record Review Act | Effective Jan. 1, 2025, amendments to the Personnel Record Review Act (PRRA) (HB 3763) increase employer obligations under the Act. Under the existing PRRA, employers were required to provide personnel documents used in determining the employee’s qualifications for employment, promotion, transfer, compensation, discharge, or other disciplinary action upon written request from the employee. Under the amendments, employers must now also provide copies of contracts, employee handbooks, and written policies and procedures employees were subject to – as well as personnel documents pertaining to benefits. In addition, an employee’s “written request” for records now specifically includes any electronic communications, including emails or text messages. And though existing law limits the fee that an employer can charge the employee to the actual cost of duplicating the requested records, the amendment specifies that the fee may not include imputed costs – such as the time spent duplicating the information, the purchase or rental of copying machines, computer equipment, or software, or other similar expenses. | Modify internal policies and train HR and managers/supervisors to comply with the law’s changes. Ensure that requests from employees sent by email or text message are honored, and that personnel records such as contracts and employee handbooks are provided when requested. Ensure any fees charged for providing records are limited to the actual cost of duplicating the information. |
(6) | Employees have expanded protections and a new “good faith” requirement under Whistleblower Act amendments | Effective Jan. 1, 2025,HB 5561 amends the Whistleblower Act. The new law: Protects employees who report directly to their employer The amendments expands protected conduct under the Act to include reporting violations of the law or threats to public health and safety directly to the employer (rather than a governmental agency). Clarifies “employee” An “employee” includes anyone permitted to work by an employer, except independent contractors. Imposes a “good faith” requirement on employees Employees now must have a “good faith” belief that the questioned activity or practice violates a state or federal law or poses a danger to employees, public health or safety. Prohibits retaliation Employers are prohibited from retaliating against employees who threaten to disclose illegal or dangerous activities – provided the disclosure is based on a “good faith” belief. “Retaliatory action” now includes blacklisting an employee from future opportunities and immigration-based retaliation, but excludes truthful performance-related references, as well as actions taken under federal direction or required by law. Defines adverse employment action “Adverse employment action” includes any action that “a reasonable employee would find materially adverse,” including any action that could dissuade a reasonable worker from disclosing protected information. Provides for enforcement by the AG’s office, and increases penalties The Illinois Attorney General’s office now has express statutory authority to file suit against employers who retaliate or threaten retaliation against employees. Employees can now be awarded interest on back pay of 9% for each year up to 90 calendar days from the date a complaint is filed, along with liquidated damages and a civil penalty up to $10,000 each. | Update whistleblower policies to include the changes in the law, including who is considered an “employee,” the “good faith” requirement for reporting unlawful activities, and the protections employees have under the new law. Train HR and managers/supervisors on the new law, emphasizing the importance of not retaliating against employees who report or threaten to report illegal or dangerous activities. Ensure clear, accessible channels for employees to report alleged violations or threats to public health and safety. |
(7) | Employers have additional recordkeeping obligations under the Illinois Wage Payment and Collection Act | Effective January 1, 2025, amendments to the Illinois Wage Payment and Collection Act (SB 3208) increase employer recordkeeping obligations. Under the new law, employers must maintain copies of employee pay stubs for not less than three years after the date of payment, and provide copies of pay stubs to employees (or former employees) within 21 days upon employee request – but employers are not required to grant this request more than twice in a 12-month period, and for former employees, employers are not required to grant the request more than one year after the date of separation. Employers can require that employees make the request for pay stubs in writing. In addition, employers who furnish electronic pay stubs in a manner that an outgoing employee cannot access after separation must, by the end of the outgoing employee’s final pay period, offer to provide the employee with a record of all the pay stubs from the year prior to the separation – and must keep a written record of the date of offer and if and how the employee responds. An employer who fails to furnish pay stubs as required is subject to a civil penalty of up to $500 per violation, payable to IDOL. | Update recordkeeping policies and practices to maintain and provide copies of pay stubs in compliance with the law. Train HR and managers/supervisors on the law’s new requirements and the company’s procedures on responding to requests from employees and former employees for copies of pay stubs. |
(8) | BIPA per-scan damages are no longer | SB 2979 amends the Illinois Biometric Information and Privacy Act (BIPA) to limit damages to one violation per individual, rather than each instance their biometric information is captured, collected, disclosed, redisclosed, or otherwise disseminated. The amendment, which took effect Aug. 2, 2024, is the Illinois legislature’s answer to Cothron v. White Castle System, Inc. (see our blog on Cothron here), which held that a separate BIPA claim accrues each time a private entity scans or transmits an individual’s biometric identifier or information in violation of section 15(b) or 15(d) of BIPA – not just the first time. The amendment also permits a “written release” by electronic signature. | Despite the elimination of per-scan damages, employers using biometric data must still be diligent. Be certain to have a clear written BIPA policy in place, notify employees (and consumers) before collection, obtain written consent, and make a retention schedule publicly available. Keep watch of the current split between Illinois federal judges on whether the damages-limiting amendment applies prospectively or retroactively from Aug. 2, 2024. (See our blog here.) The scope of an employer’s potential financial exposure could vary greatly, depending on the court overseeing the litigation. Employers should monitor developments, and consult with counsel if facing a BIPA claim. |
(9) | New procedures for employers if discrepancies arise in E-Verify or I-9 inspections | Effective Jan. 1, 2025, SB 0508 clarifies employers are not required to use E-Verify (or any other electronic employment verification system) to determine work authorization status unless required by federal law – and employers who use verification systems cannot impose verification requirements greater than those required by federal law. New procedures if discrepancy in verification information However, if employers choose to use a verification system, they must comply with new procedures if there is a discrepancy in an employee’s employment verification information. If an employer finds a discrepancy in an employee’s verification information, the employer must provide the employee with the deficient documents and the reason for the deficiency, provide instructions on how to correct the deficiencies (if required by law), and explain the employee can have a representative present during related meetings, among other requirements. If an employer receives notification of a discrepancy from a federal or state agency, the employer must refrain from taking adverse action against the employee, provide the employee with a notice explaining the discrepancy and the time period the employee has to contest the determination, and explain that the employee may have a representative in any related meetings, discussions or proceedings. Obligations regarding I-9 forms In addition, under the new law, if an inspecting entity determines during an inspection of the employer’s I-9 forms that the employee’s work authorization documents fail to establish that the employee is authorized to work in the US and provides notice to the employer, the employer must provide: (i) Written notice to the employee of the deficiency; (ii) The time period for the employee to notify the employer whether the employee is contesting the determination; (iii) The date and time of any meeting with the employer or inspecting entity regarding a correction of the determination; and (iv) Notice that the employee has the right to representation during any meetings with the employer and inspecting entity. If the employee contests the I-9 determination, the employer must notify the employee of the inspecting agency’s final determination within 72 hours of receipt. | Employers should consult with counsel to decide the best method for determining work authorization status given the new law and required procedures if discrepancies arise. |
(10) | Coming in 2026: Employers prohibited from using AI that has discriminatory effect on employees | Effective Jan. 1, 2026, HB 3773 amends the Illinois Human Rights Act (IHRA) to make it unlawful for employers to use AI that has the effect of discriminating against employees on the basis of a protected class in recruitment, hiring, promotion, discipline, termination and other terms, privileges or conditions of employment. In addition, the law also prohibits employers from using ZIP codes as a stand-in or proxy for protected classes. The law also requires employers to notify applicants and employees when using AI with respect to “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.” | Inventory your AI used in employment activities such as recruitment, hiring, and promotion, and regularly audit your AI systems to ensure they do not inadvertently discriminate against protected classes under the IHRA. Create policies to ensure notice is provided to applicants and employees when AI is being used in employment-related decisions. For more on the new law, and a survey of the AI legal landscape across the US and globally, see our prior blog here. |
For advice and counsel on implementing changes to comply with any of your new Illinois obligations, please contact your Baker McKenzie employment lawyer.