The year 2024 was a busy one for Illinois lawmakers, who enacted notable changes to no fewer than nine laws that affect Illinois employers, all taking effect on January 1, 2025.

This Insight highlights the most significant developments that will affect employers and offers an overview of the changing legal landscape in Illinois.

New Personnel Record Disclosure Obligations

The Illinois Personnel Record Review Act (IPRRA), which applies to Illinois employers with five or more employees, requires employers to permit employees (including former employees terminated within the preceding year) to review, copy, or obtain copies of records twice per calendar year. The law was amended to (i) not only expand the list of documents employers must provide but also clarify which documents need not be disclosed and (ii) revise the procedures for requesting and obtaining the records.

Note that neither the statute as amended nor current guidance specifies whether the threshold applies only if there are five employees located within the state of Illinois. As there are Illinois statutes that are specific about this question, absent further guidance, employers should construe this provision broadly and treat the IPRRA as applicable if they have five or more employees, even if fewer than five are located in Illinois.

Modified Entitlement to Documents

The amendments expanded the list of personnel documents to which employees and eligible former employees may be entitled. The IPRRA already stated that employees could request access to documents used in determining an employee's qualifications for employment, promotion, transfer, compensation, discharge, or other disciplinary action. As of 2025, this list also includes documents related to benefits. In addition, new provisions will require employers to provide:

• any employment-related contracts or agreements that the employer maintains are legally binding on the employee;
• any employee handbook that the employer made available to the employee or that the employee acknowledged receiving; and
• any written employer policies or procedures that the employer contends the employee was subject to and that concern qualifications for employment, promotion, transfer, compensation, benefits, discharge, or other disciplinary action.

The IPRRA includes exceptions for a variety of personal records. The amendments add to these exceptions, now also protecting employers’ documents related to trade secrets, client lists, sales projections, and financial data from mandatory disclosure.

Revised Procedures and Enforcement Provisions

The IPRRA amendments also modify procedures for making and responding to personnel record requests. Previously, the law permitted employers to require that requests be made “in writing on a form supplied by the employer” but did not limit an employer’s obligations if requests were not made in writing. The amendments delete reference to a form, instead providing that an employee has a right to inspect, copy, and receive copies of documents upon making a request to the employer in writing.

The amendments add several specifications describing to whom such written requests should be directed and what information should be included. They also make clear that any electronic communications, such as text messages or emails, are considered written requests within the statute.

While the IPRRA continues to permit employers to charge a fee for the actual costs of providing copies, the amendments clarify that such fees may not include “imputed costs” for time spent making copies, equipment, or other such business expenses. The deadline for providing documents remains at seven days, with a provision for a seven-day extension if needed. The amendments clarify that the extension may be seven calendar days, not business days.

The amendments address the IPRRA’s enforcement provisions. The IPRRA already included a private right of action, but it was unclear when a lawsuit claiming violation could be filed because employees first had to file a complaint with the Illinois Department of Labor (IDOL), which the IDOL was tasked to investigate and, if possible, resolve or, if it chose, to pursue. The amendments give the IDOL 180 days to resolve a complaint or file an action before the complaining employee can file a lawsuit in state court.

Expanded Pay Stub Requirements

The Illinois Wage Payment and Collection Act (IWPCA) was amended to define a “pay stub” and specify that such a pay stub must be provided to each employee for each pay period. In practical terms, this change is not significant since the law previously required “an itemized statement of deductions” made from wages. However, the amendments do add numerous new recordkeeping obligations. As of January 1, 2025, Illinois employers will be required to keep records of pay stubs for all employees, including terminated employees, for at least three years.

Under the new provisions, employees and former employees will be entitled to copies of their pay stubs upon request. Note that, in contrast to the IPRRA, the IWPCA does not require such requests to be made in writing but does permit employers to impose such a requirement. The IWPCA specifies that such requests be directed to “a person responsible for maintaining the employer’s payroll” and provides that such person may be designated in an employer’s written policy.

In another contrast to the IPRRA, the IWPCA gives employers more time to honor requests for copies of pay stubs, permitting 21 calendar days for employers to furnish paper or electronic copies. As under the IPRRA, employers need not grant more than two requests for copies of pay stubs within any 12-month period or provide former employees with copies of pay stubs more than a year after the employee’s separation from employment.

Finally, the amendments to the IWPCA anticipate that many employers today have adopted payroll processes that rely on electronic storage and delivery of pay stubs, often through a third-party vendor. An employer that provides pay stubs electronically using a system that a former employee cannot access a year after termination must offer to provide an outgoing employee with their pay stubs for the year preceding their separation from employment. Employers must maintain a record of this offer that notes the date it was made and the employee’s response. Human resources (HR) managers should take note of this provision and consider incorporating an offer of pay stub records into off-boarding processes.

Prohibitions from Retaliating Against Employees Based on “Good Faith Belief”

Amendments to the Illinois Whistleblower Act (IWA) clarify the definition of an “employee” and add a “good faith” requirement for reports of alleged unlawful activity while also expanding protections for alleged whistleblowers. New language provides that anyone other than an independent contractor that is “permitted to work” by an employer is an “employee.”

Another addition to the IWA is a lengthy definition of the term “retaliatory action,” including an explanation that it does not apply to conduct taken under the direction or request of the federal government or required by law or to truthful performance-related information shared in response to a request for a reference. The phrase “retaliatory action” is used in new language that clarifies the IWA’s existing prohibition on retaliation against whistleblowers, expanding the statute’s language to prohibit employers from retaliating against an employee even if the employee merely threatens to disclose information about an employer’s illegal or dangerous activity.

Language added to the law specifically requires that the employee’s disclosure or potential disclosure be based on “a good faith belief” that the employer’s activity, policy, or practice violates a law or regulation or “poses a substantial and specific danger to employees, public health, or safety.” The amendments also expand the definition of “adverse action” to include any action that “could dissuade a reasonable worker from disclosing or threatening to disclose” information protected by the law.

The amendments also significantly expand the IWA’s enforcement provisions. The private right of action that was already available under the IWA will now include additional remedies, such as injunctive relief, interest on back pay at an annual rate of nine percent, front pay, liquidated damages of up to $10,000, and a mandatory $10,000 civil fine payable to the aggrieved employee. Moreover, the amended IWA authorizes the Illinois Attorney General to investigate an employer, initiate or intervene in a civil action, and seek a panoply of remedies.

Additional Limitations on Non-Compete and Non-Solicitation Agreements

The Illinois Freedom to Work Act (IFWA) was amended by two separate bills, both taking effect on New Year’s Day. One initiative bans non-competes for licensed professionals who provide mental health services to veterans and first responders. A second amendment will prohibit Illinois employers from entering into non-compete or non-solicitation agreements with construction workers regardless of whether they are covered by a collective bargaining agreement (CBA). Notably, there were four proposals seeking to expand the IFWA; the two that failed would have broadly limited or banned restrictive covenants altogether.

No Discrimination Based on Family Responsibilities or Reproductive Health Decisions

The Illinois Human Rights Act (IHRA) was amended to expand the scope of its protected classes to also prohibit employers from taking adverse actions against an employee or prospective employee based on the employee’s “family responsibilities.” The amendment defines “family responsibilities” as an employee’s actual or perceived provision of personal care to a family member. “Personal care” is defined as 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. Personal care also includes being physically present to provide emotional support to a covered family member with a serious health condition who is receiving inpatient or home care. “Family members” under the amendment include an employee’s child, stepchild, spouse, domestic partner, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent.

Importantly, the law does not create an accommodation obligation or require an employer to modify its reasonable rules or policies related to leave, scheduling, productivity, attendance, absenteeism, timeliness, work performance, etc.

Separately, an additional amendment to the IHRA further prohibits employers from discriminating against an employee or prospective employee for actual or perceived decisions regarding reproductive health. Although the IHRA already prohibited pregnancy-based discrimination, the amendment added “Reproductive Health Decisions,” 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 Regarding the Employment of Minors

The Illinois Child Labor Law was rewritten and replaced with the comprehensive Child Labor Law of 2024 (CLL). The CLL covers minors under 16 years of age and is intended to provide “the greatest protection of a minor's well-being.” Under the CLL, Illinois employers may not employ any minor unless that minor has obtained from a school issuing officer a valid employment certificate authorizing the minor to work for the employer. Employers must provide a prospective minor employee with a notice of intention to employ for submission to a school issuing officer. The law requires employers to keep a copy of this notice of intention and a copy of the employment certificate on file with other employment records, including the minor’s name, date of birth, and place of residence. Such records are subject to inspection by school officials, including truant officers.

The CLL specifies allowable work hours. Minors (with certain exceptions) generally cannot work:

• more than 18 hours during a week when school is in session,
• more than 40 hours during a week when school is not in session,
• more than eight hours in any single 24-hour period,
• between 7 p.m. and 7 a.m. from Labor Day until June 1 or between 9 p.m. and 7 a.m. from June 1 until Labor Day,
• more than three hours per day or more than eight hours total of work and school hours on days when school is in session, and
• more than five consecutive hours without a minimum of a 30-minute meal break.

When a minor is working during the above-allowed timeframe, the CLL also requires that the minor be supervised by someone who is 21 years or older.

In addition to the time requirements above, the CLL restricts the locations and industries in which minors are allowed to work. A few examples of prohibited locations are factories, mines and quarries, cannabis shops, and oil refineries. The IDOL has posted detailed guidance about the CLL in the form of Frequently Asked Questions (FAQs).

Rights and Responsibilities Related to E-Verify

E-Verify is a federal program that employers can use to confirm the employment eligibility of their employees by comparing the information taken from an employee’s Form I-9 with the records available to the Department of Homeland Security and the Social Security Administration. In Illinois, E-Verify is a voluntary program for most employers unless obligated by federal law (i.e., federal contractors or subcontractors). With an amendment to the Right to Privacy in the Workplace Act, Illinois lawmakers clarified that there is no requirement for Illinois employers to enroll in any electronic employment verification system, including E-Verify, unless otherwise required. The amendment makes it clear, however, that employers cannot impose work verification requirements greater than those required by federal law.

If an employer does use a verification system and asserts that a discrepancy exists in an employee's employment verification information, the employer must provide the employee with the following:

• the specific documents that were identified to be deficient and the reason, and if requested by the employee, the employer must provide the original documents within seven business days;
• instructions on how the employee can correct the allegedly deficient documents; and
• an explanation of any other rights that the employee may have in connection with the employer's contention.

If an employer receives notification from any federal or state agency regarding a work authorization discrepancy (e.g., employee name and Social Security number do not match), an employer cannot take any adverse action against the employee, including re-verification, based on receipt of the notification alone. Employers must first follow a notice process. The employer must provide notice to employees of the inspection within 72 hours that includes:

• the name of the entity conducting the inspections,
• the date that the employer received notice of the inspection,
• the nature of the inspection, and
• a copy of the notice received by the employer.

More Transparency Required in Job Postings

Legislation passed in 2023 amended the Illinois Equal Pay Act (IEPA) to create new salary transparency obligations. Starting on January 1, 2025, employers with 15 or more employees must disclose “pay scale and benefits” in all job postings for jobs that will be performed, at least in part, in Illinois as well as those performed outside of Illinois, if the employee will report to a supervisor, office, or other worksite located in Illinois. Required disclosures include the wage or salary, or a wage or salary range, plus a general description of benefits and other forms of compensation (including bonuses, stock options, and other incentives) the employer expects to offer for the position. Note that using a third party to advertise job opportunities does not absolve employers of these obligations: a third party must also include in job postings the information required by the IEPA and may avoid liability for noncompliance if the employer ultimately fails to provide the required information; under such circumstances, potential liability would be borne solely by the employer.

The IDOL recently issued new guidance about the IEPA in the form of FAQs. These FAQs address the practical implications of the law, clarifying key terms, definitions, and requirements under the IEPA. Notably, official advice regarding what information about benefits must be included is somewhat thin. For example, FAQ No. 15 asks, “What benefits information should be included? How much detail is required?” The answer provided by this publication offers that the IDOL intends to provide more guidance and examples in the future. For now, the agency encourages employers to “consider all possible benefits,” further explaining that “an employer must describe at least the nature of the benefits and what they provide” but that “they do not need to provide specific details, terms and conditions, or dollar values.”

Notably, an employer must disclose the “good faith” range it reasonably expects to offer and may meet its obligation to disclose benefit information by referencing an easily accessible public section of its website, as explained in FAQ No. 16. However, for positions covered by a CBA, it is not permitted to simply refer applicants to the CBA.

Another provision of the IEPA requires covered employers to announce, post, or otherwise make known all opportunities for promotion to current employees within 14 days after making an external job posting for the same position (see FAQ No. 23). In addition, employers will need to preserve records of the pay scale and benefits information for each posted position for at least five years.

Employers should be aware that a person aggrieved by an employer’s pay transparency or promotional opportunity violation can file a complaint, and can do so anonymously, with the IDOL. Complaints must be filed within one year of the date of the alleged violation, and the IDOL will assess whether jurisdictional requirements are met, notify the employer, investigate, and determine whether reasonable cause exists to believe a violation occurred. The IDOL can use its discretion when deciding whether to waive, set, or impose a financial penalty for noncompliance, taking into consideration various factors, including, but not limited to, the size of the business of the employer and the gravity of the violation.

For postings that were active at the time the IDOL determined there was a pay transparency or promotional opportunity violation if an employer fails to cure the violation within the applicable cure period (i.e., first offense—14 days, second offense—seven days, third or subsequent offense—no cure period) the IDOL may assess penalties as follows: first offense—a fine not to exceed $500; second offense—a fine not to exceed $2,500; and third or subsequent offense—a fine not to exceed $10,000. For any postings that were no longer active at the time the IDOL determined there was a pay transparency or promotional opportunity violation, the IDOL may assess penalties as follows: first offense—a fine not to exceed $250; second offense—a fine not to exceed $2,500; and third or subsequent offense—a fine not to exceed $10,000.

Further, if an employer has three or more violations, it will incur automatic penalties without a cure period for active postings for a period of five years, during which the five-year period will restart if the IDOL finds any subsequent violations. And retaliation against an applicant or employee is prohibited, so an employer or an employment agency may not refuse to interview, hire, promote, employ, and/or otherwise retaliate against an applicant or employee for exercising any rights related to pay transparency or promotional opportunity.

Captive Audience Law

Finally, the new Worker Freedom of Speech Act (WFSA) makes Illinois the newest of numerous jurisdictions to ban so-called “captive audience meetings.” The WFSA prohibits employers from taking, or threatening to take, adverse action against employees who decline to attend or take part in employer-sponsored meetings about the employer’s religious or political opinions. The WFSA’s legality under the First Amendment to the U.S. Constitution is currently the subject of active litigation.

What Illinois Employers Should Do Now

• Ensure that you have procedures in place to respond to employee personnel records requests promptly and properly.
• Consider creating or updating a handbook policy pertaining to requests for personnel records and pay stubs, including specifying:
  • the personnel records an employee may request;
  • the number of times a request may be made annually;
  • that the request must be in writing;
  • to whom the request should submitted, i.e., the person (by name or title) or the department;
  • the deadline for response (including possible extension); and
  • the charge, if any, for copying and providing records (i.e., the actual cost of duplicating the requested record).
• Update other applicable relevant company policies to reflect new obligations—especially regarding document retention and disclosure practices.
• Train appropriate HR staff on changes to the law and their new compliance obligations to ensure understanding of the expectations imposed on the organization.
• Assess wage statements, make sure that compliant pay stubs will be issued to employees each pay period, and review recordkeeping procedures to comply with the new three-year retention period. Now would be a good time to undertake a preventive audit of all payroll practices, including those occurring during the onboarding of a new hire or off-boarding of a separating employee.
• Review your procedures for investigating employee complaints, even those that are unrelated to harassment or discrimination.
• Consider amending your handbooks and policies to cover new protected characteristics.
• If necessary, adjust or implement new processes and procedures for minors in their workplace, including the types of work assigned to minors and the scheduling of work hours for minors.
• Review your employment verification practices to ensure that current work authorization verification or re-verification requirements are not greater than what is obligated by federal law.
• Establish clear guidelines for setting pay scales, including salary ranges, benefits, and bonuses. In addition, revise your job posting templates to incorporate pay scales and a description of benefits in accordance with the IEPA.
• Watch for updates as we continue to monitor the IDOL and the Illinois Department of Human Rights for further guidance.

Staff Attorney Elizabeth A. Ledkovsky contributed to the preparation of this Insight.