New Year, New Laws
January 2026
Some new protections and legal requirements are taking effect in the Illinois workplace starting in 2026. Employers should be aware of these latest developments, identified below.
- New requirements and limitations to employment, severance, or settlement agreements pursuant to amendments to the Workplace Transparency Act effective January 1, 2026. The amendments allow an employee to seek consequential damages for violation of the Act, require confidentiality provisions in settlement or severance agreements be supported by separate consideration, and prohibit several unilateral terms (for example, attempts to contractually shorten the limitations periods for filing a claim).
- Paid time to pump for nursing mothers pursuant to the Nursing Mothers in the Workplace Act amendments, effective January 1, 2026, which add to the existing lactation break laws in Illinois.
- Protected leave for parents with newborns requiring NICU care pursuant to the Family Neonatal Intensive Care Leave Act, effective June 1, 2026.
- Paid leave for performance of military funeral honors pursuant to amendments to the Illinois Military Leave Act, effective August 1, 2025.
- Eligibility for leave to donate blood, bone marrow or organ transplant is extended to part-time employees pursuant to amendments to the Employee Blood and Organ Donation Leave Act, effective January 1, 2026.
- Requirements for use of AI in employment decisions pursuant to amendments to the Illinois Human Rights Act, effective January 1, 2026. In key part, AI must not be used in a way that results in discrimination based on protected classes and notice of AI use must be provided to employees.
- Three-year pilot program allowing unemployment benefits for mental health, authorized under the Unemployment Insurance Act for workers who leave employment due to a psychiatrist-certified mental health disability.
If you have any questions or need assistance reviewing or revising your policies, please contact our office for guidance. Our firm is ready to help you navigate these new requirements and ensure that your organization remains in full compliance with the updated Illinois laws.
