Illinois Employment Law Changes for 2026 - HR ALERTS

Illinois Employment Law Changes for 2026

Effective: January 1, 2026

Illinois has enacted several employment law changes for 2026 that expand employee protections and increase employer compliance obligations. These updates apply to any employer with Illinois employees, including remote workers, regardless of where the company is headquartered.

Key 2026 Illinois Updates

Workplace Rights, AI, and Labor Protections (High Priority)

• New restrictions on the use of artificial intelligence in employment decisions, including protections against discriminatory outcomes

• Expanded protections for employee concerted activities

• Enhanced anti-retaliation protections under the Victims’ Economic Security and Safety Act

• Expanded organ donor leave eligibility

Pay, Breaks, and Employee Benefits

• Paid lactation breaks now required

• Updates to the Transportation Benefits Program Act, expanding employee and employer coverage requirements

• Launch of the Illinois Health Benefits Exchange as a state-based marketplace

Payroll, Taxes, and Unemployment (Compliance-Focused)

• Increased penalties for failing to file new hire reports or monthly unemployment insurance wage reports

• Expanded unemployment insurance eligibility

Training Requirements

• Revised human trafficking recognition training requirements

What Employers Should Do Now

Illinois employers should review AI-related hiring practices, leave policies, payroll reporting procedures, training programs, and break policies ahead of 2026 to ensure compliance.

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Get day-to-day updates on Illinois Employment Law Changes for 2026 visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).