Increases to minimum wage
Effective January 1, 2025, the minimum wage rate in Illinois increased by $1 per hour from $14.00 to $15.00. The minimum wage for tipped workers and youth workers (under 18) working fewer than 650 hours per calendar year was raised to $9.00 per hour and $13.00 per hour, respectively.
Pay transparency posting requirements take effect
An amendment to the Illinois Equal Pay Act (IEPA) requires employers with 15 or more employees to include “pay scale and benefits” information in every job posting for a position that will be “physically performed, at least in part, in Illinois” or for a position that will be physically performed outside of Illinois but that reports to a “supervisor, office, or other work site in Illinois.” Employers must also provide such information to third parties engaged to make job postings and inform all current employees of externally listed opportunities for promotion within 14 days of posting. In addition to posting requirements, employers must maintain records of job postings and pay and benefits information for five years and are prohibited from retaliating against employees or applicants who exercise their rights under the amendments to the IEPA.
While further agency guidance regarding “pay scale and benefits” information is forthcoming, the statute provides that the posted wage or salary information should be based on the “applicable pay scale, the previously determined range for the position, the actual range of others currently holding equivalent positions, or the budgeted amount for the position, as applicable.” For benefits information, employers can satisfy requirements by posting “a relevant and up to date general benefits description in an easily accessible, central, and public location” on the company website or by including in the posting a hyperlink to a publicly viewable webpage displaying the required information. Notably, employers will be afforded the opportunity to fix violations before being subject to penalties.
Amendments to the Illinois Human Rights Act
Effective January 1, 2025, the Illinois Human Rights Act prohibits discrimination or harassment on the basis of reproductive health decisions or family responsibilities.
New e-verification requirements
An amendment to the Illinois Right to Privacy in the Workplace Act provides that there is no requirement for employers to enroll in any electronic employment verification system, including E-Verify, unless otherwise required, and that employers cannot impose work verification requirements beyond those required by federal law. The amendment imposes procedural requirements for employers using a verification system and prohibits employers from taking adverse action against an employee or applicant based solely on receipt of a notification regarding a work authorization discrepancy.
Pay record requirements
Legislators have amended the Illinois Wage Payment and Collection Act (IWPCA) to impose new record-keeping obligations on employers. Previously, “an itemized statement of deductions” made from wages was required but the amendments specify that a pay stub, including information on hours worked, pay rates, overtime pay, and deductions from wages, must be provided to each employee for each pay period; require employers to maintain pay stub records for all employees (including terminated employees) for at least three years; and allow employees to request copies of their pay stubs up to twice per year. The IWPCA gives employers 21 days to respond to employee requests but does not require that such requests be made in writing, though employers are permitted to establish a written policy imposing such requirements.
Employers who provide electronic pay stubs in a manner that does not allow employees to continue to access their pay stubs “at least a full year after separation” must offer in writing to provide a record of pay stubs for the preceding year upon employee separation.
Personnel record requirements
As of January 1, 2025, employers with five or more employees are required to provide additional categories of documents in response to employee requests under the Illinois Personnel Record Review Act, including documents related to benefits or used in determining the employee’s qualifications, applicable contracts, employee handbooks, and applicable policies or procedures, subject to new exceptions to employer requirements such as documents related to trade secrets or confidential financial data. Additionally, the amendments modify procedural requirements for employees submitting personnel record requests, including by requiring that such requests be made in writing.
Amendments to Illinois Whistleblower Act
Amendments to the Illinois Whistleblower Act, effective January 1, 2025, expand its definition of “adverse action” and “employee,” add a “good faith” requirement for reports of alleged unlawful activity, and expand protections against retaliatory actions for alleged whistleblowers.
Captive audience law
The new Illinois Worker Freedom of Speech Act prohibits employers from taking, or threatening to take, adverse action against employees who decline to attend or participate in meetings or receive communications that convey the employer’s position on religious or political matters. The law is currently the subject of active litigation challenging its legality under the First Amendment to the U.S. Constitution.
Child Labor Law
The Child Labor Law of 2024 repeals the previous Illinois Child Labor Law to increase restrictions on the employment of minors under 16 years of age, including allowable work hours and times; add employer requirements, including obtaining and maintaining an employment certificate from a school-issuing officer authorizing the minor’s work as well as notice and posting; and provide criminal and civil penalties for violations. Employers must also provide the minor with a notice of intention to employ for submission to a school-issuing officer.