While many are contemplating what the change in the presidential administration and congressional control may bring over the next four years, some things are certain. A number of new and amended Illinois laws will go into effect on Jan. 1, 2025. Here is a brief summary of those changes and recommended actions Illinois employers may wish to consider.

Minimum Wage Law: State Increase to $15 an Hour

This is old news, but thanks to a law passed in 2019, the statewide minimum wage will increase on Jan. 1, 2025, to $15 per hour for most employees. Lower rates apply to non-temporary employees who are over the age of 18 in the first 90 days of employment, individuals under the age of 18 who work fewer than 650 hours per calendar year, and tipped employees. Also, the City of Chicago and Cook County have different wage rates, so Illinois employers should confirm compliance.

Equal Pay Act Amendments: Pay Transparency

Effective Jan. 1, 2025, employers with 15 or more employees must disclose in any posted position the wage or salary (or range) as well as a general description of benefits and other forms of compensation that the employer expects to offer for the position. This requirement applies to jobs that will be performed at least in part in Illinois or will be performed outside of Illinois if the employee will report to a supervisor, office, or work site in Illinois. In addition, for any externally posted job opening, employers must notify their current employees of the opportunity for promotion within 14 days of making the external job posting. Employers who use third parties to announce, post, or publish job opportunities must provide this information, and the third party must provide the information in the posting. The amendment also imposes recordkeeping requirements on employers to maintain certain information for five years after a posting. Illinois employers should determine if they are covered by the amendments and, if so, review all existing and future job postings to ensure compliance.

Wage Payment Collection Act Amendments: Pay Stub Requirements

Beginning Jan. 1, 2025, employers must issue pay stubs on each payday, including an itemized statement showing details such as hours worked, rate of pay, overtime pay, overtime hours, gross wages earned, deductions, and total wages and deductions year to date. Pay stubs must be provided in paper or electronic format at the employee’s election. Employers must keep copies of the pay stubs for three years, and both employees and former employees have the right to request copies of pay stubs. To prepare, employers should ensure their payroll is set up to include the necessary information on pay stubs in the new year.

Personnel Records Review Act Amendments: Additional Employment Records  

Beginning in 2025, employees in Illinois will be entitled to receive copies of additional categories of information under this statute. Specifically, employers must make available upon request copies of not only an employee’s personnel file but also any applicable (1) employment-related contracts or agreements; (2) employee handbooks; and (3) written employer policies or procedures related to qualifications for employment-related decisions. Employers who receive requests for personnel records should familiarize themselves with the new requirements under the statute.

Worker Freedom of Speech Act: Ban on Employer-Mandated Meetings

This new law, effective Jan. 1, 2025, adds new restrictions to employer-sponsored meetings. Employers may no longer require that employees attend employer-sponsored meetings if the purpose of the meeting is to communicate the employer’s opinions about religious or political matters including unionization. This effectively bans captive audience meetings; however, the law is already facing legal challenges. As of now, employers should comply with the law, including posting a notice of employee rights under this law by Jan. 31, 2025.

Illinois Whistleblower Act Amendments: Ban on Retaliation

On Jan. 1, 2025, the protections under this law are significantly expanding as the act redefines “retaliatory action” and adds whistleblower protections for disclosures related to public health and safety. Overall, employees will be protected from retaliatory action for disclosing or threatening to disclose information related to an employer’s activity, policy, or practice where the employee has a good faith belief that the activity, policy, or practice violates a law, rule, or regulation or poses a danger to public health or safety. Notably, the protections are expanding to include disclosures made to supervisors, principal officers, board members, or supervisors in an organization that has a contractual relationship with the employer. Employers should review their handbooks and consider additional training for managers to ensure that employees are not disciplined for making these disclosures.

Illinois Human Rights Act Amendments: More Protected Classes and Time to File Charge

On Jan. 1, 2025, two new protected classes will be added to the statute: (1) “family responsibilities,” which involves an employee providing personal care to a covered family member, and (2) “reproductive health decisions,” including use of contraception, fertility, and healthcare related to pregnancy. Employers should revise employee handbook provisions and training programs to ensure compliance.

Effective Jan. 1, 2025, the deadline for filing an administrative charge with the Illinois Department of Human Rights will be extended to two years. To prepare, employers should review recordkeeping policies to ensure relevant documents are preserved in line with the extended timeline.

On Jan. 1, 2026, employers will be prohibited from using in hiring and employment practices artificial intelligence (AI) that has the effect of discriminating on the basis of a protected class. Employers must also provide notice of their use of AI in hiring and employment practices. Employers should evaluate and closely monitor any use of AI in the workplace, including by third-party vendors, and comply with the notice requirement if they choose to use AI.

Illinois Child Labor Law of 2024: Replaced Old Child Labor Law

In 2024, Illinois repealed the state’s prior child labor law and replaced it with the “Child Labor Law of 2024,” which covers minors under 16 years of age and prohibits minors 13 years old and younger from being employed “in any occupation or at any work site” unless explicitly authorized by or exempted under the act. The law will go into effect on Jan. 1, 2025.

Illinois employers must obtain an employment certificate authorizing a minor’s work. To obtain a certificate, an employer must first provide the minor with a notice of intention to employ, which then must be submitted by the minor to their school’s issuing officer, along with an application for the employment certificate, which must be filled out by the minor and their parent or guardian.

The law limits the hours that a minor may work and identifies thirty categories of work that a minor may not perform in addition to the limitations imposed by the Fair Labor Standards Act. It also imposes specific requirements regarding supervision, meal breaks, record retention, postings showing the requirements of the act, and reporting of work-related injuries. The law has specific provisions that address child performers and imposes both civil and criminal penalties for non-compliance. Accordingly, employers who employ minors should become familiar with these changes to ensure compliance, including by providing supervisory training and adjustments to work assignments and scheduling and by posting required notices.

Day and Temporary Labor Services Act Amendments: Equal Pay and Additional Training

2024 brought sweeping amendments to this act, including additional record-keeping, safety training, and equal pay requirements. Notably, as of August 2024, employers who engage temporary workers for more than 720 hours within 12 months must pay those workers equal compensation as compared to directly hired employees. The requirement to pay the workers also equivalent benefits is currently in litigation. Employers should determine how they will calculate equivalent pay under the act before any worker hits the 720-hour mark and should continue to monitor the legal challenge to the requirement that employers provide comparable benefits.

Freelance Worker Protection Act: Written Contracts Required

This, too, may be old news, but as a reminder, as of July 2024, freelance work must be spelled out in written contracts (model contracts are available on IDOL’s website), and freelance workers must be paid within 30 days of the work’s completion. Employers who contract with independent contractors or freelance workers should, as soon as possible, review these agreements and distill them into a written contract that complies with the new law.

Right to Privacy in the Workplace Act Amendments: Requirements for Use of E-Verify

Beginning in 2025, Illinois employers who use E-Verify to confirm work authorization will be subject to a number of procedural and notice requirements — particularly before they take adverse action against an employee based on an apparent discrepancy in an individual’s employment verification information. For more information about these requirements, see Taft’s recent client alert about the amendments.

Posters & Notices: Updated Versions Published

As always, IDOL publishes the required postings on its website here. Employers should check the site to make sure they have up-to-date posters for the new year.

Contact Taft’s Employment and Labor Relations team with any questions.