Illinois Employment Law Changes for 2025

By David Gutwein - McMahon Berger P.C.

February 19, 2025

Numerous updates to Illinois law have taken effect in 2025 that have critical importance to employers with operations in Illinois. Generally, the updates provide additional protections to employees while imposing new requirements on employers.

Illinois Child Labor Law of 2024

Effective on January 1, 2025, The Child Labor Law of 2024 repealed and replaced the state’s prior child labor law while providing enhanced protections including additional civil and criminal penalties for violations. The Act covers minors under 16 years of age and provides that individuals 13 years of age and younger may not be employed in any occupation, unless exempted or authorized under the Act. In order to employ a minor, the employer must first obtain an employment certificate from the Illinois Department of Labor, available online, authorizing the minor to work, in addition to other requirements. It is critical for employers considering employing minors to be familiar with these requirements.

Illinois’ Equal Pay Act

Beginning January 1, 2025, amendments to the Illinois Equal Pay Act require employers who post a job opening to include the salary or wage, general description of benefits, and whatever other form of compensation the employer is offering to the selected candidate. The amendments apply to employers with 15 or more employees, involving jobs at least partially performed in Illinois, or where the employee reports to a supervisor, office, or work site within Illinois. Concerning externally posted job openings, current employees must be notified of the opportunity for promotion within 14 days of the job being posted. Finally, employers are required to maintain records of posted jobs, including the pay scales, benefits, and wages for each posted position, for at least 5 years.

Freelance Worker Protection Act (FWPA)

The FWPA became effective on July 1, 2024, and offers protections to independent contractors who work in Illinois or who work for a hiring entity located in Illinois. The protections of the FWPA are triggered when the value of the work produced is equal to or exceeds $500 in a 120-day period. Written contracts specifying the terms of the work arrangement are now required – templates for which are offered on the Illinois Department of Labor website. Additionally, employers must ensure freelance workers are paid within 30 days of completion of work.

Illinois Human Rights Act

The Illinois Human Rights Act has been amended to provide additional time for filing an administrative charge with the Illinois Department of Human Rights and to provide protection to additional classes of people. Beginning on January 1, 2025, the time limit to submit a charge to the Department increased from 300 days to two (2) years.  In addition, there is now coverage for “family responsibilities,” described as actual or perceived responsibilities to provide care to a family member. “Reproductive health decisions” are now also covered under the Act and include decisions about contraception, miscarriage, and postnatal care.

Illinois Minimum Wage Law (IMWL)

On January 1, 2025, the statewide minimum wage increased from $14 to $15 per hour. However, different wage rates apply to probationary employees, tipped employees, and employees under 18 years of age who work under 650 hours per year. Employers with operations in the Chicago area must also ensure they comply with the different wage rates enforced in the City of Chicago ($16.20 per hour).

Personnel Records Review Act (PRRA)

The PRRA, which permits employees to request copies of their personnel file, has been expanded to allow employees to request: any personnel documents used in determining employee’s qualifications for employment, promotion, transfer, compensation, benefits, discharge or disciplinary action; any employment related contracts/agreements that are legally binding on the employee; any employee handbooks 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. Accordingly, employers should modify their policies as needed to comply with the PRRA and ensure the department responsible for maintaining and issuing copies of personnel records is aware of the changes to the law.

Wage Payment and Collection Act (WPCA)

Effective January 1, 2025, employers must provide pay stubs to employees for each pay period. Each pay stub must include an “itemized statement” for that pay period, including number of hours worked, pay rate, overtime hours and rate of pay, gross wages, deductions, and year to date totals for wages and deductions. Each employee may decide whether they wish to receive their pay records in paper or electronic form. Finally, employers are required to keep records of the pay stubs for three years, which must be made available upon the request of an employee or former employee. When pay stubs are requested, employers must provide copies within 21 days of the request. Employers should ensure payroll departments or third-party payroll providers are in compliance with the WPCA and these new requirements.

Right to Privacy in the Workplace Act

Beginning January 1, 2025, Illinois employers using the E-Verify system for work authorization confirmation will need to comply with numerous additional requirements. For example, when a discrepancy arises with the verification sought, employers must follow the new procedures set forth in the Act. This is of particular relevance when a discrepancy arises with a candidate’s verification information and the employer contemplates an adverse employment action.

Illinois Whistleblower Act

Amendments made to the Illinois Whistleblower Act also took effect on January 1, 2025, broadening the scope and protections from retaliation previously offered by the Act. The law now protects employees, operating under a good faith belief, who disclose or threaten to disclose that an activity, policy, or practice violates a state or federal law, rule, or regulation or poses a substantial and specific danger to public health or safety. The amendments also provide for greater relief, damages and penalties for violations.  Additionally, the law now covers disclosures made by an employee to a supervisor, principal officer, board member, or supervisor in an organization that has a contractual relationship with the employer. Employers should update their policies as needed and ensure that any potential recipients of a disclosure identified by the Act are aware of their obligations.

Worker Freedom of Speech Act

The Worker Freedom of Speech Act has the effect of banning captive audience meetings with employees. In other words, employees cannot be discharged, disciplined or penalized, nor can they be threatened with discharge, discipline, or penalization, for choosing not to participate in an employer-sponsored meeting intended to communicate the employer’s position on “religious or political matters”. Additionally, an employer may not threaten an employee in order to induce the employee’s attendance at such a meeting. Of critical importance to employers, the law defines “political matters” to include labor organizations. Therefore, employers may no longer hold captive audience meetings at which the employer expresses its opinion about unionization or about a specific labor union. Exceptions are built into the law, including that an employer may discuss religious or political matters at a meeting with employees when attendance is voluntary. The law also requires employers to post a notice of employee rights under the Act by January 31, 2025.

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