Illinois’ New 2026 Employment Laws for Business Owners

If you own or manage a business in Illinois, 2026 brings a major set of new employment law changes that took effect either late in 2025 or at the start of this year. Some of these changes are straightforward updates to existing rules. Others introduce entirely new obligations that employers may not have on their radar yet. 

Failing to comply with any of them can expose your business to legal liability, so understanding what has changed should be a priority on your 2026 to-do list. At Gierach Law Firm, our highly experienced Naperville business law attorney helps local businesses stay ahead of employment law changes so they can focus on running their operations without unnecessary legal risk. Call us for help today.  

What New Leave Requirements Are Illinois Employers Responsible For?

Several of the new laws that took effect in 2025 and 2026 deal directly with employee leave. Together, they are a significant expansion of what Illinois employers are required to provide.

Breast Pumping Breaks Must Now Be Paid

Effective January 1, 2026, Public Act 104-0076 amended Illinois’ Nursing Mothers in the Workplace Act to require that break time for expressing breast milk must be paid at the employee’s regular rate of compensation. Employers can no longer require employees to use other available paid leave during these breaks. 

Military Funeral Honors Leave

Illinois employers with at least 51 employees are now required to provide up to eight hours of paid leave per month, or up to 40 hours per calendar year, for employees who perform military funeral honor details. This requirement, under SB0220, has been in effect since August 1, 2025. 

Covered employees must have been employed for at least 12 months, worked at least 1,250 hours, and be an active or retired member of the U.S. Armed Forces or an authorized provider trained to perform funeral honors. Importantly, employees cannot be required to exhaust other available leave before using this benefit, though employers may request documentation confirming proper use.

The Family Neonatal Intensive Care Leave Act

The Family Neonatal Intensive Care Leave Act takes effect June 1, 2026, and requires employers to provide leave for employees with a child who is a patient in a Neonatal Intensive Care Unit. The amount of leave required depends on the size of your workforce:

• Employers with 16 to 50 employees must provide 10 days of leave under the Act.
• Employers with 51 or more employees must provide 20 days.
• Employers with 15 or fewer employees are exempt.

If your business falls in either of the covered categories and you have not yet reviewed your leave policies to account for this requirement, now is the time to do so.

Military Service Members and Accrued Leave

HB 1362, effective August 15, 2025, amended the Illinois Service Member Employment and Reemployment Act to clarify that service members whose employment is interrupted by active duty must be allowed, upon request, to use accrued vacation or paid leave before their active service begins. Critically, they cannot be required to use that leave. The choice belongs to the employee.

Organ Donation Leave Extended to Part-Time Employees

Effective January 1, 2026, certain part-time employees at private employers with 51 or more employees, and all public employers, became eligible for paid leave under Illinois’ Blood and Organ Donation Leave law. Under HB 1616, part-time employees may now use up to 10 days of leave in a 12-month period for organ donation purposes. 

What New Workplace Protections Apply to Illinois Employees?

Beyond leave requirements, several new laws expand employee protections in areas that employers need to address in their policies and practices.

Employer-Issued Devices and Domestic Violence

HB 1278 amends Illinois’ Victims’ Economic Security and Safety Act to protect employees who use company-issued devices to document acts of domestic violence, sexual violence, gender violence, or other violent crimes committed against themselves or a family or household member. 

Employers are prohibited from taking adverse action against these employees, including revoking access to the device or prohibiting future use. Employees are entitled to retain access to any photographs, recordings, or other digital documents stored on the device. Employers should review their device use policies to make sure they are not unintentionally creating liability in this area.

Tighter Restrictions on Non-Disclosure Agreements

HB 3638 further restricts non-disclosure provisions under Illinois’ Workplace Transparency Act. The definition of unlawful employment practices has been expanded to include work-related communications regarding wage and hour laws, workplace safety, and concerted activities or unfair labor practices. 

Additionally, confidentiality provisions in severance and settlement agreements must now be supported by separate, specifically identified consideration beyond what is provided for the release of claims. If your business uses standard severance agreements, those documents should be reviewed by an employment attorney.

E-Verify Changes and Adverse Action Restrictions

SB2339, enacted December 12, 2025, changes the Right to Privacy in the Workplace Act to limit work authorization verification requirements for employers enrolled in E-Verify. Employers who receive notification of a discrepancy related to an employee’s taxpayer identification number or other identifying documents are now prohibited from taking adverse action based solely on that notification. 

Employers must also notify the affected employee within five business days of receiving such a notification. The law allows civil penalties and a private right of action for violations.

Equal Pay Act Coverage Expanded

Amendments to the Illinois Equal Pay Act broadened the definition of a covered employer to include all employers with 100 or more employees working in or reporting to locations or supervisors in Illinois. Previously, the law applied only to private employers required to file an annual EEO-1 report. If your business crosses the 100-employee threshold, you may now be required to obtain an equal pay registration certificate from the Illinois Department of Labor.

Call a Naperville Business Law Attorney at Gierach Law Firm Today

Keeping up with Illinois employment law is a real challenge for business owners who are already managing the demands of running a company. A Naperville business lawyer at Gierach Law Firm in Naperville can review your current policies and help you make the changes you need. Call Gierach Law Firm today at 630-756-1160 for a consultation.