Illinois Business Law Changes for 2025

This article will provide what changes in store for Illinois’ business in 2025.  Read on to get insight on employment law changes that may affect how your business runs, including the Paid Leave for All Workers Act, the Child Extended Bereavement Act, employee wages, and enhanced employee rights.

2025 Illinois Employment Law Changes

There have been several important changes to business law in 2025. Your business must be up to date on these to ensure you are not exposing your business to unwanted liabilities.

Pay Transparency and Equal Pay—HB 3129

The Illinois Equal Pay Act of 2003 (the “Act”) has been amended several times over the years. The latest amendment to the Act made several prominent changes that took effect January 1, 2025.  

What are the Biggest Changes?

As of January 1, 2025, employers in Illinois with 15 or more employees (not independent contractors) must include pay and benefit information in all job postings, whether internal or external. Any employee of the employer, even if they are working remotely or outside of Illinois, will count towards the 15 or more amount.  

The pay and benefit requirement applies to specific employment opportunities that will be physically performed, at least in part, in Illinois, or will be physically performed outside of Illinois, but the employee reports to a supervisor, office, or other work sites in Illinois.  

What Pay and Benefit Information is Required?

An employer must act in good faith and include the anticipated wage or salary, or wage or salary range, and must generally describe benefits and other compensation (bonuses, stock options). The employer can direct a potential employee to a public website for the company, so long as the website includes the pay scale and benefits for the specific position.  

If an employer seeks to use a third party (Indeed, ZipRecruiter), the employer must provide the information to the third party. That third party is required to include that information in the posting. The third party could be held liable for failing to include the information in the posting, unless they can show that the employer failed to provide the required information.  

What Else is Required?

If an employer with 15 or more employees posts a specific job posting outside the business, they must announce, post or otherwise make known all opportunities for promotion to its current employees no later than 14 calendar days after the posting.  This 14-day deadline is not triggered under the following circumstances:  

• Internal-only job postings that are not published externally;  

• If an employer decides to fill a vacancy by promoting someone it already employs, and it was never published externally;  

• State of Illinois job positions that are exempt from competitive selection; or  

• Help Wanted sign on window or website, it is considered a general announcement

Preservation of Records

Employers with 15 or more employees are required to preserve records that document the name, address, and occupation of each employee, the wages paid to each employee, the pay scale and benefits for each position, and the job posting for each position.  

Violations of the Act

A complaint can be made within one year of the alleged violation and can be made anonymously.  An employer is prohibited from retaliating against any employee who reports an alleged violation. An investigation will occur to determine if there was a violation. If there was a violation, the employer will be given 14 days to remedy the violation for the first offense and 7 days for the second offense. Any violations after the second offense will just result in a fine being levied with no opportunity to cure.  

A financial penalty may be imposed as well if the posting was still active at the time it was determined there was a violation:  

• First offense, fine may not exceed $500;  

• Second offense, fine may not exceed $2,500; and  

• Third offense, fine may not exceed $10,000.  

For postings that are no longer active, but there was a violation:  

• First offense, fine may not exceed $250;  

• Second offense, fine may not exceed $2,500; and  

• Third offense, fine may not exceed $10,000.

Child Labor Laws

There are new laws in effect as of January 1, 2025, as it relates to child labor under the Child Labor Law of 2024, which covers minors under the age of 16.  

What are the Requirements?

Employers must obtain an employment certificate authorizing a minor’s work and the employer must maintain records on the premises.  

There are limitations on when a minor can work:  

• No more than 18 hours during a week when school is in session;  

• No more than 40 hours during a week when school is not in session;  

• No more than eight hours in any single 24-hour period;  

• No work between 7 p.m. and 7 a.m. from Labor Day until June 1 or between 9 p.m. and 7 a.m. from June 1 until Labor Day; and  

• No more than three hours per day or more than eight hours total work and school hours on days when school is in session.  

Minors must also be supervised by an adult 21 years or older.  A minor cannot work more than five hours continuously without at least a 30-minute meal break.  

If an employer violates the requirements under the Act, they could be subject to civil and criminal penalties.  

Use of Artificial Intelligence (AI)

The Illinois Human Rights Act has been amended to tackle the use of AI through the employment process starting January 1, 2026. Employers will be prohibited from using AI that has a discriminatory effect on employees with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.  

Employers must notify employees and applicants when they are using AI for any of the above-mentioned areas.  

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Frequently Asked Questions

What are the new employment laws in Illinois 2024?

As of January 1, 2024, Illinois employers must provide eligible employees with up to 10 days of paid leave for organ or tissue donation, pay temporary workers equal to the lowest-paid direct-hire employee, and grant two weeks of unpaid leave to those grieving family or household members killed in a crime. Additionally, all workers are eligible for up to 40 hours of paid leave for any reason starting March 31, 2024, or 90 days after they begin employment.

What is the new break law in Illinois 2023?

Starting January 1, 2023, employers in Illinois must provide employees with an unpaid meal break of at least 20 minutes no later than five hours into the workday. For employees working beyond their first 7.5 continuous hours, an additional 20-minute meal break must be provided for every additional 4.5 continuous hours worked. Reasonable bathroom breaks do not count towards the meal break.

How many hours of PTO can you carry over in Illinois?

In Illinois, you can carry over up to 20 hours of paid sick leave (half of unused leave), with an annual accrual cap of 40 hours, unless the employer has established a higher limit.

How does the Paid Leave for All Workers Act affect employers and employees?

The Paid Leave for All Workers Act grants employees additional paid leave for any reason, while employers must offer a minimum of one hour of paid leave for every 40 hours worked, up to a maximum of 40 hours per 12-month period.

What are the new requirements for Cook County employers regarding pre-tax commuter benefits?

Cook County employers with 50 or more employees must provide pre-tax commuter benefits to eligible employees starting January 1, 2024.

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This article provided an overview, not intended to be an exhaustive review, of Illinois Business Laws and any significant updates for 2024. If you have questions regarding a small or large business in Illinois, don’t hesitate to get in touch with one of our experienced Illinois business lawyers at 630-324-6666.