New Illinois Laws Bring Significant Changes for Employers and Businesses, by Paul Daugherity, Esq., 8-18-2026

Illinois employers and businesses should begin preparing for a series of new laws affecting workplace policies, hiring practices, employee leave and compensation, civil rights compliance and certain consumer transactions.

Illinois Gov. J.B. Pritzker recently signed several measures that take effect in 2027, with certain insurance and retail cash-acceptance provisions taking effect in 2028.

Among the changes, Illinois will expand workplace protections for menopause-related conditions, codify disparate-impact liability under the Illinois Human Rights Act (IHRA), require certain employers to provide paid jury-duty leave and restrict driver’s-license requirements in job postings. Other legislation expands protections for volunteer emergency workers and strengthens the Illinois Attorney General’s authority to investigate alleged violations of Illinois wage, workplace-safety, fair-employment and other labor and employment laws.

Menopause-Related Workplace Protections

Effective January 1, 2027, HB 5284, the Illinois Menopause Equity and Care Act, expands workplace protections for employees experiencing menopause-related conditions.

The law amends the IHRA’s definition of “pregnancy” to include menopause-related conditions, bringing those conditions within the IHRA’s existing pregnancy reasonable-accommodation provisions. It defines a “menopause-related condition” to include perimenopause, menopause and associated medical or symptomatic conditions, including vasomotor symptoms, sleep disruption, cognitive or mood changes and osteoporosis-related changes.

The legislation also expands the statutory examples of reasonable accommodations to include flexible scheduling or modified work hours and temperature- or climate-adjusted workspaces.

Covered employers should review their accommodation policies and procedures, train managers and human resources personnel to recognize requests that may trigger IHRA obligations, and update required accommodation notices and distribution practices.

The legislation also includes health-care measures intended to increase awareness of and access to menopause-related care. Certain insurance-coverage provisions take effect January 1, 2028.

Illinois Codifies Disparate-Impact Liability

The Civil Rights Safeguard Act, SB 3777, expressly codifies disparate-impact liability under the IHRA, effective January 1, 2027.

Unlike intentional-discrimination claims, disparate-impact claims may challenge facially neutral policies or practices based on their discriminatory effects. In the employment context, the law permits challenges to criteria or methods that disproportionately affect protected groups, even without proof of discriminatory intent.

The Act also establishes statutory standards concerning business necessity and less-discriminatory alternatives.

Employers may want to evaluate selection criteria, hiring practices, testing requirements and other facially neutral employment practices for potential disproportionate effects on protected groups.

The Act also includes provisions affecting financial-credit and public-accommodations matters.

Paid Jury Duty for Employers With More Than 25 Employees

Beginning January 1, 2027, HB 4844 will require employers with more than 25 employees to compensate employees serving jury duty at their regular rate of pay.

Illinois law already protects employees who take time away from work for jury service and prohibits employers from discharging, threatening or otherwise coercing employees because of their service. The new law adds a compensation requirement for covered employers.

Employers should review their jury-duty policies and determine whether changes are necessary to payroll and leave procedures.

Expanded Protections for Volunteer Emergency Workers

HB 1353, effective January 1, 2027, expands employment protections for volunteer emergency workers.

The Act extends protections to certain volunteer emergency workers who respond to emergencies or participate in required training and prohibits employers from requiring employees to use vacation time or other compensatory time for those activities.

Employers with volunteer emergency workers should review their leave and attendance policies for compliance.

New Restrictions on Driver’s-License Requirements in Job Postings

Under HB 4758, effective January 1, 2027, an employer or employment agency generally may not state in a specific job posting that an applicant must have a valid driver’s license unless driving is one of the essential functions of the posted job and is a business necessity.

If a job requires a valid driver’s license, the employer or employment agency must include in the posting a brief description explaining why the license is required.

The law amends Illinois’s Job Opportunities for Qualified Applicants Act, which applies to employers with 15 or more employees in the current or preceding calendar year, as well as employment agencies. Employers should review job descriptions and posting templates for driver’s-license requirements that may not satisfy the new standard.

Illinois Attorney General Gains Additional Worker-Protection Authority

HB 4725, effective January 1, 2027, expands the authority of the Illinois Attorney General’s Worker Protection Unit.

The law strengthens the Attorney General’s investigative tools regarding wage laws, workplace safety and other worker protections, including authority to issue document subpoenas, inspect employer premises and employment-related records, and interview workers at worksites.

The expanded authority reinforces the importance of maintaining accurate employment records and effective wage-and-hour, safety and fair-employment compliance practices.

Cash-Acceptance Requirements for Certain Businesses

Under HB 4592, effective January 1, 2028, retail mercantile establishments, defined as fuel stations, grocery stores, pharmacies and restaurants, that employ an individual to accept in-person payments at a physical location generally may not refuse cash for sales of less than $500 or post a sign stating that cash is not accepted, subject to statutory exceptions.

The law includes exceptions for certain transactions, including sales at self-service checkouts and sales occurring between 10 p.m. and 6 a.m. The law does not require businesses to accept bills larger than $20 and provides a 30-day opportunity to cure a violation before a fine may be imposed.

Covered businesses should review their payment policies and point-of-sale procedures before the effective date.

Preparing for the New Requirements

Although most of these laws do not take effect until 2027, Illinois employers and businesses should consider using the coming months to prepare, including:

• reviewing reasonable-accommodation policies and required notices to address menopause-related conditions;
• evaluating facially neutral employment practices for potential disparate impacts;
• updating jury-duty, emergency-leave and related payroll policies;
• reviewing job descriptions and job-posting templates for driver’s-license requirements and ensuring covered postings explain why a license is required;
• reviewing employment records and compliance practices in light of expanded state investigative authority; and
• for covered retail businesses, assessing cash-acceptance and point-of-sale practices before the 2028 requirements take effect.

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