January 1, 2025, is not only the start of the New Year, but it is also the effective date for many new laws impacting employers in Illinois. There are a variety of new laws and amendments to existing laws that employers must make note of, such as:
Pay Transparency Law. In 2023, Governor JB Pritzker signed amendments to the Illinois Equal Pay Act of 2003 into law. This amendment increases transparency with prospective employees by requiring employers with 15 or more employees to include a pay scale and benefit information in job postings. To highlight the purpose of this amendment, Governor Pritzker stated, “we’ve taken action to close the pay gap and strengthen protections for workers and these amendments to the Illinois Equal Pay Act are another critical step in that fight.”
Pay Stub Law. In another effort to protect employees, Illinois will now require employers to provide pay stubs to employees for each pay period, that includes information regarding hours worked, pay rates, overtime, and any deductions from wages. Further, employees may request copies of their paystubs and employers are required to retain the paystubs for three years from the date of payment. This law provides employees with the power to verify their hours and income and take their earnings into their own hands.
Illinois Human Rights Act. As of January 1, 2025, Illinois joined less than a dozen other states across the country in providing explicit employment protections for family caregivers. Public Act 103-0797 amends the Illinois Human Rights Act to prohibit employers from making any employment decisions based on an employee or prospective employee’s personal care of a family member.
Whistleblower Act. In addition to amendments to the Illinois Human Rights Act, there were also amendments made to the Illinois Whistleblower Act. The amendments prohibit an employer from retaliating against employees based on “good faith beliefs” of unlawful activity. One of the key changes to the Act is the change in language from “retaliate” to “retaliatory action”—which now includes any adverse employment action or threat of an adverse employment action.
Worker Freedom of Speech Act. S.B. 3649 bans “captive audience meetings” designed to “communicate an employer’s position on religious or political matters.” Employers can host a voluntary meeting regarding such topic but are prohibited from retaliating against employees for failing to attend. Further, this law requires employers to post a notice informing employees of their rights and that they are not mandated to attend such meetings.
As these aforementioned changes are only a few of the many laws placed into effect on January 1, 2025, it is imperative that employers monitor evolving laws to ensure they remain in compliance.