New Illinois Laws Increase Employment Requirements
Author: Robert S. Teachout, Brightmine Legal Editor
August 28, 2025
Illinois Gov. JB Pritzker has signed a flurry of bills into law, several of which impact the employment landscape. Employers should prepare promptly to comply with these new regulations, the majority of which will take effect at the beginning of 2026.
Leave and Benefits
Like current full-time employees, part-time employees will be eligible for paid leave for organ donation under HB 1616, effective January 1, 2026.
Under HB 3200, also effective January 1, 2026, individuals who leave a job due to a mental health disability may receive unemployment insurance benefits. The law also gives the Illinois Department of Employment Security broader authority to recover unemployment insurance benefits for which a recipient is ineligible.
Contracts
HB 3638 amends the Workplace Transparency Act to expand protections for employees regarding:
- Confidentiality agreements;
- Concerted activity to address work-related issues;
- No-rehire provisions; and
- Damages and attorney fees incurred defending an action for breach of confidentiality agreements.
These amendments take effect January 1, 2026.
HB 3178 amends the Digital Voice and Likeness Protection Act, originally enacted in 2024 to protect performers' interests in contracts involving AI-generated digital replicas. The amendments clarify the definition of digital replica, particularly with regard to a performer's voice. They also make language more consistent with the terms of performance agreements. Provisions regarding unenforceable agreements are applicable only to new performances on or after January 1, 2026.
Payroll
Employers can offer pre-tax commuter benefits to part-time workers, starting January 1, 2026, under HB 3094. However, these benefits are not available to construction workers who work under a collective bargaining agreement.
HB 1362 closed an unintended loophole in the Uniformed Services Employment and Reemployment Act regarding calculating compensation for employees serving as military personnel and for pay differentials for public employees serving in the military. Differential pay entitlement now terminates after a consecutive three-year absence on voluntary active service but will be reinstated if an employee returns to work for over 90 days. Differential pay is not provided for unpaid active-duty service periods. Unlike the other bills, HB 1362 took effect immediately upon signing on August 15, 2026.