Client Alert: New Employment Law Developments for Illinois Employers

November 15, 2024

Illinois employers should be aware of a number of new developments that have taken effect, or will take effect January 1, 2025, including amendments to Illinois’ Personnel Record Review Act, the expansion of protected characteristics under the Illinois Human Rights Act, a substantial extension of the time for employees to file charges with the Illinois Department of Human Rights, and more.

CFDB’s Employment Team will be presenting a 1-hour webinar on November 20, 2024, covering these and other developments. The webinar is especially appropriate for HR professionals, in-house attorneys, or any business owners with employees in Illinois. CLE credit in Illinois is pending. Sign up here: https://forms.office.com/r/HTEcHp43Pk 

Illinois’ New Freelance Worker Protection Act

Effective July 1, 2024, there are new statutory protections for “freelance workers” (i.e., independent contractors) in Illinois. The law applies to freelance workers who perform services worth at least $500 over a 120-day period. The law excludes workers in the construction industry, governmental entities (such as school districts), and individuals performing services as an employee under Section 10 of the Employee Classification Act. Under the new law, freelance workers are entitled to written contracts that include certain items such as the method of compensation and the name of the hiring entity, as well as full payment for the services by the due date in the contract, or if the due date is not specified, within 30 days of completing the services.

BIPA Amendment Limits Damages and Permits Electronic Consent

Effective August 2, 2024, the Illinois Biometric Information Privacy Act (BIPA) was amended to limit potential damages for violations. Previously, courts awarded damages for BIPA violations to individuals per instance of unauthorized data collection, meaning that employers could be liable for hundreds or thousands of violations depending on the number of times an employee’s biometric information was obtained without consent. Under the new amendment, an individual is limited to only one recovery per type of violation. For example, if an employee used their fingerprint to swipe in and out of a time clock every day for one year, the employee would only be able to seek recovery for one violation under BIPA. The amendment also provides that written consent to collect biometric data may be obtained through electronic signature.

Amendments to Illinois’ Equal Pay Act Require Pay Transparency in Job Postings

Starting January 1, 2025, all employers with 15 or more employees must include the pay scale and benefits information in any job posting for an open position where 1) at least some of the work will be performed in Illinois, or 2) the employee will report to a manager, work site, or office in Illinois. This requirement extends to third parties that advertise open positions for the employer. Employers subject to the new law must also notify current employees of job openings, within 14 days after the employer makes an external job posting.

Illinois Personnel Record Review Act Amendment Clarifies How Written Requests Must be Made and Expands Employers’ Production Requirement

Important amendments to the Illinois Personnel Record Review Act (“Act”) take effect January 1, 2025. First, the amendments require employees to make written requests for their personnel records, but such requests can be made by email or text message. The Act sets forth to whom the request must be made, and provides that the employee must request specific personnel records (or all requests allowed under the Act). Employers should be on notice that the definition of a “personnel record” has expanded significantly, and now also includes items such as employment contracts/agreements, any employee handbook, and employment policies or procedures.

Illinois’ New Worker Freedom of Speech Act

Illinois’ new Worker Freedom of Speech Act (“Act”) also takes effect January 1, 2025. The Act protects workers from mandatory participation in employer-sponsored meetings if the meeting serves to communicate the employer’s position on religious or political matters (the latter which includes the question of whether to join or support any labor organization).

Under the new law, employers are prohibited from taking adverse actions against employees who choose not to attend or participate in such meetings, or incentivizing those who do. The Act grants employees a private right of action for violations, including entitlement to injunctive relief, back pay, and attorney’s fees. If the Illinois Department of Labor brings such an action, civil penalties are also available. Employers must post notice of employee rights under the Act in the same area as other mandatory notices by January 30, 2025.

Amendment to Illinois Wage Payment and Collection Act Imposes New Requirements on Employers

Effective January 1, 2025, the Illinois Wage Payment and Collection Act has been amended to require employers to maintain a copy of an employee’s pay stub for at least three years after the date of payment, regardless of whether the employee’s employment ends during such period or whether the pay stub is furnished in paper or electronic form. Further, employers are required to produce copies of pay stubs upon a current or former employee’s request within twenty-one calendar days of the request.

Amendments to IHRA Prohibit Discrimination Based on Reproductive Health Decisions and Family Responsibilities, Extend the Time for Filing Charges, and Allow for Higher Penalties

Effective January 1, 2025, employers should be aware of important changes to the Illinois Human Rights Act (IHRA). Employers will be prohibited from unlawfully discriminating against an employee based on the employee’s actual or perceived “reproductive health decisions” (which includes items such as use of contraception, fertility treatments, and healthcare related to pregnancy or termination). The amendments also prohibit discrimination on the basis of an employee’s actual or perceived provision of personal care to a family member, whether in the past, present, or future. Notably, the amendments provide that employers are not obligated to make accommodations or modifications to reasonable workplace rules or policies for employees based on family responsibilities. Employers should consider amending their handbooks and policies to cover these new protected characteristics.

Further, as of the new year, employees will be allowed two years from the date of an alleged civil rights violation to file charges alleging employment discrimination, harassment, or retaliation with the Illinois Department of Human Rights. Prior to this change, employees were only granted 300 calendar days from the alleged violation. This is a significant development in the law, and will provide complainants with additional time to file charges if they miss their filing deadline at the Equal Employment Opportunity Commission.

Amendment to Whistleblower Act Prohibits Employers From Retaliating Against Employees Based on Good-Faith Belief

Illinois’ Whistleblower Act has also been amended to prohibit employers from taking retaliatory action against an employee who discloses (or threatens to disclose) information about an employer’s activities, policies, or practices based on the employee’s good-faith belief that such activities, policies, or practices violate a law, rule, or regulation or pose a danger to employees, public heath, or safety. Employers also may not retaliate against an employee who refuses to participate in an activity that the employee has a good-faith belief would violate a law, rule, or regulation.

Key Contacts:

Tracey Wolfe: twolfe@crokefairchild.com

Erin McAdams Franzblau: efranzblau@crokefairchild.com

Heidi Steiner: hsteiner@crokefairchild.com

Brian Gold: bgold@crokefairchild.com

Kristy Pardo: kpardo@crokefairchild.com