Client Alert: Key Illinois Employment Law Changes Effective in 2026, by Paul Daugherity, Esq., 12-8-2025

Illinois employers face multiple new statutory requirements and amendments to existing laws in 2026, impacting employer obligations in areas ranging from discrimination proceedings to family leave and workplace protections.

Among pending laws are:

Illinois Human Rights Act – Discretionary Fact-Finding Conferences (SB2487)

• Effective: January 1, 2026 (applies to charges filed or pending on or after August 15, 2025)
• Summary: Prior to this law, the Illinois Department of Human Rights (IDHR) was required to hold fact-finding conferences for nearly all open discrimination charges. A fact-finding conference is an investigative meeting where parties present their case, respond to each other, and present documents. The new law amends the Illinois Human Rights Act to make it discretionary rather than mandatory that the IDHR conduct a fact-finding conference. If both the complainant and respondent wish to hold a fact-finding conference, they must submit a written request within 90 days of the charge being filed and agree to a 120-day extension for investigation, provided the IDHR has not issued its report before receiving the requests. The new law also imposes new civil penalties.
• Employer Considerations:
  • Employers should continue to document all interactions and maintain robust records, as conferences may still be requested or deemed beneficial.

Transportation Benefits Program Act – Part-Time Employee Eligibility (HB3094)

• Effective: January 1, 2026
• Summary: The law expands access to pre-tax commuter benefits (e.g., transit passes, parking) to part-time employees.
• Exclusion: Construction workers covered by a collective bargaining agreement are not eligible.
• Employer Considerations:
  • Employers must review benefit programs to include part-time employees.
  • Payroll and HR systems may need adjustments to accommodate pre-tax deductions for a larger employee population.
  • Communication with employees about eligibility and enrollment options will be critical.

Workplace Transparency Act – Prohibition on Restrictions to Concerted Activity (HB3638)

• Effective: January 1, 2026
• Summary: The amendment prohibits employers from entering into agreements that restrict an employee, prospective employee, or former employees’ rights to engage in concerted activities to address work-related issues. This Act does not apply to any collective bargaining agreements contracts that are entered into in and subject to the Illinois Public Labor Relations Act or the National Labor Relations Act. It applies to contracts entered into, modified, or extended on or after the Act’s effective date.
• Employer Considerations:
  • Employers must ensure employment agreements, policies, and handbooks do not include provisions limiting collective discussions.
  • Confidentiality and non-disparagement clauses should be reviewed to avoid potential conflicts with employee rights.
  • Training for management on recognizing protected concerted activity will help reduce inadvertent violations.

Nursing Mothers in the Workplace Act – Paid Break Time (SB212)

• Effective: January 1, 2026
• Summary: Amends the Nursing Mothers in the Workplace Act to make it mandatory that employers provide 30 minutes of paid break time (rather than reasonable break time) for employees to express breast milk for their nursing infant child for up to one year after the child’s birth, unless doing so would cause an “undue hardship.” It also provides that the employee may use other paid break time or mealtime for any time needed in excess of 30 minutes. Under the Act, the employee must be compensated during the break time at their regular rate of compensation. Additionally, an employer cannot require an employee to use paid leave during the break time or reduce an employee’s compensation during the break time in any other manner.
• Employer Considerations:
  • Employers should assess whether workplace facilities are adequate for lactation purposes and consider adjustments if necessary.
  • Policies should be updated to clarify eligibility, duration, and reporting procedures for employees requesting nursing breaks.

Family Neonatal Intensive Care Leave Act – NICU Leave (HB2978)

Effective: June 1, 2026
Summary: Employers with 16 or more employees must provide unpaid, job-protected leave to employees whose child is hospitalized in a neonatal intensive care unit (NICU). The amount of days varies based on employer size. For employers with 16 or more employees and no more than 50 employees, an employee is entitled to use a maximum of 10 days of unpaid neonatal intensive care leave while any child of the employee is a patient in a neonatal intensive care unit. For those with 51 or more employees, the employee is entitled to use 20 days of unpaid neonatal intensive care leave while a child of the employee is a patient in a neonatal intensive care unit.

• Leave can be taken continually or intermittently, based on the needs of the child and family.
• Employers must maintain job protection and benefits continuation during the leave period.

• Employer Considerations:
  • HR should update family leave policies and implement clear notice and documentation requirements.

As 2026 approaches, the cumulative impact of these statutory changes will require prompt and coordinated compliance efforts. Employers should begin reviewing policies, handbooks, agreements, and administrative practices now to mitigate risk and ensure readiness by the effective dates. Proactive planning—rather than reactive adjustments—will best position organizations to navigate the evolving Illinois employment landscape with confidence.

Author: Paul Daugherity is a Partner in Kaufman Dolowich’s Chicago office