Event Details

2026 Employment Law Update

January 29th, 2026

New and Amended Illinois Employment Laws

1. AI & Discrimination (IHRA Amendment – Effective 1/1/26)
   1. It is a civil rights violation to use AI that:
      1. Discriminates against protected classes
      2. Uses ZIP code as a proxy for protected class
   2. Applies to all hiring decisions (hiring, promotion, discipline, discharge, and others)
   3. Employers must notify employees AI is being used.
   4.  Action: Examine AI tools used in recruiting and/or employment decisions and build disclosure for employees.
2. Blood & Organ Donation Leave (Effective 1/1/26)
   1. Previously only for full-time employees.
   2. Now part-time employees are also eligible for paid organ donation leave.
   3. Action: Update handbook leave policy.
3. Lactation Breaks – Nursing Mothers Act (Effective 1/1/26)
   1. Employees must now be paid regular rate during lactation breaks
   2.  Action: Ensure payroll and break policies reflect.
4. Use of Employer Equipment to Record Violence (Effective 1/1/26)
   1. Under VESSA revision, employees cannot be disciplined for using employer devices to record:
      1. Domestic violence
      2. Sexual or gender violence
      3. Other violent crimes
   2. Employees must be able to access recordings.
   3. Action: Review/update tech-use and recording policies.
5. NICU Leave – Family Neonatal Intensive Care Leave Act (Effective 6/1/26)
   1. Unpaid leave if child is in NICU:
      1. 10 days (16–50 employees)
      2. 20 days (51+ employees)
   2. Must first exhaust FMLA.
   3.  Action: Consider creating a NICU leave policy.
6. Workplace Transparency Act Changes (Effective 1/1/26)
   1. Major changes to settlement/severance agreements:
      1. Cannot waive future claims
      2. Confidentiality must be:
         1. Mutually beneficial
         2. Employee’s documented preference
         3. Separate consideration required
   2. Expanded employee rights to:
      1. Testify
      2. Engage in protected concerted activity
   3. Action: Update templates for settlement, severance, arbitration agreements.
7. Military Funeral Honors Leave
   1. Employers with 51+ employees must provide up to 40 hours paid leave for military funeral honors duty.
   2. Paid at regular rate; in addition to other leave.
8. Workers’ Rights & Safety (SB 1976)
   1. Illinois cannot weaken worker protections below certain federal standards.
   2. State must maintain strong wage/hour and safety protections even if federal law loosens.
9. Chicago Heat Illness Prevention Ordinance (Proposed – 2027)
   1. If passed, would require:
      1. Shade, water, cool-down breaks
      2. Heat illness training
      3. Heat prevention plan
      4. Recordkeeping
      5. Fines up to $1,000/day
10. Recent Cases you should know
    1. Ames v. Ohio Dept. of Youth Services (SCOTUS 2025)
    2. Nawara v. Cook County (7th Cir. 2025)
    3. Gardner-Alfred v. Federal Reserve Bank of NY (2nd Cir. 2025)
    4. Mercado v. S&C Electric (IL Supreme Court 2025)

Key Takeaways:

1. Review AI HR tools
2. Update AI disclosure notices
3. Update leave policies
4. Create lactation breaks
5. Update device-use policies
6. Update settlement and severance agreement templates
7. Trainings on medical exams limitations
8. Review religious accommodations
9. Audit overtime calculations to include bonuses