Several new Illinois employment laws take effect Jan. 1, 2027, expanding employee leave rights, accommodation obligations, hiring restrictions, and the Illinois Attorney General’s enforcement authority. Illinois employers may wish to review handbooks, job postings, HR guidance, and related policies to help ensure compliance before year-end.
What Is Changing?
1. Increased Compensation Thresholds for Restrictive Covenants (effective Jan. 1, 2027)
The Illinois Freedom to Work Act (820 ILCS 90) was amended in 2022 to establish compensation thresholds below which employee non-compete and non-solicitation agreements are unenforceable. On Jan. 1, 2027, the minimum compensation thresholds will increase to $80,000 a year for non-competes and $47,500 a year for non-solicitation agreements. The increased thresholds apply to restrictive covenants with employees entered into on or after Jan. 1, 2027. All other requirements for valid restrictive covenants, including adequate consideration, a statement advising the employee to consult an attorney, and a 14-day review period to consider the agreement, will continue to apply.
2. Paid Jury Duty (effective Jan. 1, 2027)
Illinois has amended the Jury Act and Jury Commission Act (HB 4844, Public Act 104-0683) to require employers with more than 25 employees to pay employees their regular rate of pay for all time spent serving on jury duty. There is no limit in the statute on either the amount of time that is compensated or the amount of money paid for time served on a jury. Although not applicable to smaller employers with 25 or fewer employees, Illinois employers of all sizes must continue to provide job-protected leave and refrain from retaliation.
3. Driver’s License Discrimination (effective Jan. 1, 2027)
An amendment to the Job Opportunities for Qualified Applicants Act, Illinois’s “Ban the Box” law, (HB 4758, Public Act 104-0776) now prohibits employers with 15 or more employees from requiring employees to have a valid driver’s license or discriminating against applicants without a valid driver’s license unless driving is an essential job function of the role, consistent with business necessity. Going forward, job postings requiring employees to have a valid driver’s license must include a brief explanation of why a driver’s license is necessary for the role.
4. Menopause Accommodations (effective Jan. 1, 2027)
The Illinois Menopause Equity and Care Act (HB 5284, Public Act 104-0793) amends the Illinois Human Rights Act (IHRA) to protect menopause and related conditions, including perimenopause and associated symptoms. Covered employers will be required to provide reasonable accommodations for employees going through menopause, such as flexible scheduling, modified work hours, or temperature-adjusted workspaces, and to inform employees of these rights through workplace postings and policies.
Beginning Jan. 1, 2028, additional requirements will apply to health insurance plans. These include a mandate that group plans covering more than 25 employees cover an annual menopause or perimenopause health visit for individuals age 45 and older.
5. Expanded Volunteer Emergency Worker Protections (effective Jan. 1, 2027)
An amendment to the Volunteer Emergency Worker Job Protection Act (HB 1353, Public Act 104-0581) prohibits employers from penalizing employees in any way (no longer limited to termination) for absences or tardiness related to emergency response or required training. Additionally, employers may not require volunteer emergency workers to use vacation or other compensatory time to cover time off to engage in volunteer emergency worker activities.
6. Codification of Disparate Impact Claims (effective Jan. 1, 2027)
The Civil Rights Safeguard Act (SB 4844, Public Act 104-744) amends the IHRA to expressly recognize disparate impact claims by defining unlawful discrimination to include discrimination “whether by purpose or effect.” Employers may face liability for facially neutral practices that disproportionately affect protected groups unless the practice is job-related and consistent with business necessity. A claim may still proceed if a less discriminatory alternative exists. The change mirrors the longstanding federal framework and provides a basis for Illinois agencies and courts to review neutral policies for discriminatory effects, including amid shifts in federal enforcement priorities.
7. Expanded Authority of the Attorney General’s Worker Protection Unit (effective Jan. 1, 2027)
Amendments to the Illinois Attorney General Act and the Freedom of Information Act (HB 4725, Public Act 104-676) expand the authority of the Attorney General’s Worker Protection Unit, also known as the Workplace Rights Bureau (the Unit). The Unit’s authority extends to wage payment, workplace safety, fair employment practices, and other labor and employment laws “without limitation.” The Unit may issue subpoenas, serve written interrogatories under oath, inspect employer premises, including non-public areas, copy records, and interview employees. Investigation materials are exempt from FOIA disclosure; cooperating individuals may be treated as confidential informers; and knowingly destroying or altering subpoenaed materials may be a Class A misdemeanor.
8. Increased Protections for Employee Biomarker Testing and Biomarker Information (effective Jan. 1, 2027)
Amendments to Illinois’s Genetic Information Privacy Act (GIPA) (SB 2886, Public Act 104-642) expand GIPA protections to biomarker testing and biomarker information. Employers may not solicit, request, or require biomarker information as a condition of employment. The amendments add confidentiality and release restrictions similar to those applicable to genetic testing information.
Takeaways for Employers
Employers may wish to use the remainder of 2026 to prepare for these changes by updating jury duty, leave, accommodation, and volunteer emergency worker policies; reviewing job postings and applications for unnecessary driver’s license requirements; and training HR and management teams on the new obligations. Employers with questions about how these developments affect their workforce or specific policies may wish to consult legal counsel.