Illinois Legislation Updates 2024: What Employers Need to Know

Illinois passed several significant pieces of legislation that will affect employer obligations and employee rights. Key aspects of each law are discussed below.

FINAL REGULATIONS ISSUED FOR PAID LEAVE FOR ALL WORKERS ACT

The Illinois Paid Leave for All Workers Act (IPLAWA) went into effect on January 1, 2024. Final regulations addressing several key areas of the law went into effect on April 30, 2024.

Accrual of Paid Leave. The IPLAWA requires that employees accrue paid leave at a rate of 1 hour for every 40 hours worked. The regulations confirm that this calculation must be made on a fractional basis based on 15-minute work increments, but clarify that “work periods must be counted on a minute-by-minute basis or may be rounded up to the next 15 minutes. An employer may not round down time worked.”

Carryover of Paid Leave. The final regulations confirm that a 40-hour cap may be imposed on an employee’s carryover of unused paid leave from one 12-month period to the next. This cap must be stated in the employer’s written policy.

Frontloading Paid Leave. An employer who frontloads paid leave may reduce the frontload grant for part-time employees and mid-year hires at a pro rata amount consistent with the employee’s anticipated work schedule. Employers are also permitted to frontload paid leave for some employees and provide other employees paid leave through an accrual method.

Using Paid Leave. It is the employee’s choice whether and when to apply paid leave to an absence. In situations where the employee may have multiple types of leave available to cover an absence, the regulations direct employers to confirm and document which category of leave the employee wishes to draw from.

Denying Paid Leave. An employer may deny an employee’s request for paid leave only when certain conditions are met, including that the employer maintains a written policy that is consistent with the IPLAWA requirements, the policy establishes limited circumstances when leave may be denied, and the policy is applied consistently to all employees.

Notice Requirements. In addition to those notice requirements set forth in the IPLAWA itself, the final regulations create several other notice obligations for employers including notice if the employer intends to credit IPLAWA paid leave to an existing PTO allowance provided by the employer, an initial frontloading notice, and notice any time the employer changes its paid leave policy.

BIPA REFORM

Effective August 2, 2024, the Illinois Legislature has amended the Illinois Biometric Information Privacy Act (BIPA) to confirm that multiple alleged collections of an individual’s biometric data constitute only a single violation, limited to one recovery. The Amendment also makes clear that individuals may execute a BIPA-compliant release using an electronic signature.

NEW CHILD LABOR LAW

Illinois has repealed the Illinois Child Labor Law and replaced it with the new Child Labor Law of 2024 which specifies workplaces and industries in which minors cannot work, as well as details hours and times of day that minors can work depending on their age. Employers must ensure that minor employees have valid employment certification. Certain provisions of the new law went into effect on July 30, 2024, while others are set to take effect on January 1, 2025.

AMENDMENTS TO ILLINOIS HUMAN RIGHTS ACT

Extended Time to File Claims. Previously, individuals alleging a claim under the IHRA had 90 days to file an administrative charge with the Illinois Department of Human Rights. Under the amended law and effective January 1, 2025, individuals will have up to two years to file a charge.

New Protected Classes. Effective January 1, 2025, Illinois employers are prohibited from taking adverse actions against an employee, or prospective employee, based upon the employee’s “family responsibilities” or the individual’s actual or perceived decisions on reproductive health and welfare. “Family responsibilities” means an employee’s actual or perceived provision of personal care to a family member, which includes activities to ensure that a covered family member’s basic medical, hygiene, nutritional, or safety needs are met, or to provide transportation to medical appointments, for a covered family member who is unable to meet those needs themself. “Reproductive Health Decisions” are defined as “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.”

RESTRICTIONS ON USE OF ARTIFICIAL INTELLIGENCE (AI) IN EMPLOYMENT DECISIONS

Illinois is set to join a select group of other jurisdictions taking aim at regulating the use of artificial intelligence (AI) within the employment relationship. Effective January 1, 2026, employers will be required to provide notice to individuals when an AI tool is used for the purposes of “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.” Under the amendment, AI is defined to include all content-creating generative AI and more traditional predictive AI, which produces scores, ranks, classifications and other recommendations to assist in decision-making. The amendment confirms that employers will be liable if their use of AI results in unlawful discrimination under the IHRA.

EXPANDED WHISTLEBLOWER PROTECTIONS

Effective January 1, 2025, Illinois’ Whistleblower Act is amended to broaden the scope of conduct protected under the Act to protect workers who report violations of the law or threats of public health and safety directly to their employer. The amendments also expand the definition of retaliation to include blacklisting an employee from future opportunities and immigration-based retaliation.

UPDATED WAGE STATEMENTS

Effective January 1, 2025, Illinois’ amended Wage Payment and Collection Act will require employers to maintain a copy of employee pay stubs for at least 3 years after the date of payment. Employers must furnish copies of pay stubs to current and former employees upon request. Employers who violate the amended law may be subject to civil penalties of up to $500 per violation.

UPDATES TO ILLINOIS PERSONNEL RECORDS REVIEW ACT

Effective January 1, 2025, Illinois will impose new obligations on employees and employers for making and responding to personnel record review requests. For employees, the amended law clarifies that all requests under the Act must be made in writing, which includes electronic communications like text messages or emails. Additionally, the law sets forth specific requirements that an employee must follow when making their request to inspect records. Employers are required to grant at least 2 requests for records per employee each calendar year and the records that must be disclosed by the employer are expanded to include employment-related contracts or agreements, employee handbooks, and other written employer policies or procedures.

NEW EMPLOYMENT VERIFICATION PROCESS

Effective January 1, 2025, employers are prohibited from imposing work authorization verification requirements that are greater than those required by federal law. If an employer asserts that a discrepancy exists in an employee’s employment verification information, the employer is obligated to provide the employee with specific notices concerning what information is deemed deficient, how the individual may correct the deficiency, and an explanation of the individual’s right to representation and other rights related to correcting the alleged discrepancies. The law also requires employers to provide advanced, written notice to each current employee that an inspection of I-9 Employment Eligibility Verification forms or other employment records will be conducted by an inspecting entity.

REQUIRED EMPLOYER-SPONSORED MEETINGS BANNED

Effective January 1, 2025, Illinois will prohibit employers from discharging or disciplining employees who refuse to attend or participate in mandatory employer-sponsored meetings concerning political or religious matters. Under the law, employees cannot be subject to intimidation tactics, acts of retaliation, discipline, or discharge by their employer when the employee chooses not to participate in employer-sponsored meetings.

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