Several significant changes to employment law and workplace regulations will take effect in 2025 throughout Illinois, of which both employers and employees should be aware. Modifications to everything from directives for hiring procedures to enhanced anti-discrimination protections to changes in what an employee can see in his or her personnel file are forthcoming. The most crucial changes are outlined below.
Minimum Wage Hikes
The Illinois minimum wage will increase from $14.00 to $15.00 per hour on the first of the year. The tipped minimum wage is also increasing, from $8.40 to $9.00. Tipped workers may receive 60% of the hourly minimum wage from their employers, but they must hit the minimum wage with tips factored in. If they do not, the employer must make up the difference.
Workers under 18 years old may be paid $13.00 (up from $12.00) per hour if they work less than 650 hours in a calendar year. Once they hit 650 hours, their hourly wage must convert to the standard $15.00 per hour. Find more information on Illinois’ minimum wage here.
The minimum wage in Cook County runs on a different schedule. It will change mid-year, not at the start of 2025. Therefore, it will remain at $14.05 per hour (and $21.08 per hour for overtime hours). The minimum wage for tipped workers remains $8.40 per hour (and $15.40 per hour for overtime hours). More information on Cook County’s wage regulations can be found here.
The Disability Sub-Minimum Wage Is Being Phased Out
Federal law allows for companies with a “14(c) certificate” to pay a sub-minimum wage to certain workers with disabilities. Many states have passed laws barring this separate wage, and Illinois is poised to become the latest among them.
The General Assembly has already passed the Dignity in Pay Act (House Bill 793 HA1), which now awaits the governor’s signature. This legislation will phase out the sub-minimum wage over the span of 5 years—making it illegal after 2029—and will concurrently increase employment opportunities for workers with disabilities.
Salary Ranges Must Be in Job Posts
As of the new year, companies with 15 or more employees will be required to post a salary or salary range, as well as expected employee benefits, on any job post, whether announced internally within a business or externally. Businesses may satisfy these requirements by including the necessary information on each individual job posting or by including in the job post a link to a separate publicly available webpage containing the necessary information.
This law pertains to work physically performed in Illinois (even if in part) as well as to work conducted remotely but for which the employee reports to a supervisor, office, etc. that is located within the state.
The Illinois Department of Labor (IDOL) has the power to enforce this new law and to investigate its violations. Depending on the violation, the IDOL can refer the matter to the Illinois Department of Human Rights for further investigation and filing a complaint. This change was passed into law as an amendment to the Illinois Equal Pay Act of 2003. More information on the Equal Pay Act can be found here.
Promotions Opportunities Must Be Shared Internally
Under the same amendment to the Illinois Equal Pay Act of 2003, businesses must inform current employees of any opportunities for promotion related to a new job announcement that is shared externally within 14 calendar days of posting the job opening. More information on the Equal Pay Act can be found here.
More Requirements for Employment Verification
E-Verify is an online system that checks names against several governmental databases to determine a person’s legal employment eligibility. E-Verify is facilitated by the U.S. Citizenship and Immigration Services (part of the Department of Homeland Security) and the Social Security Administration. The program is voluntary for most employers, but some states may require using it to vet potential new hires. Illinois’ Right to Privacy in the Workplace Act was amended to bar Illinois employers from requiring employment verification authorization beyond what federal law requires.
E-Verify and other authorization systems will signal if they cannot confirm legal employment authorization. For example, E-Verify will issue a Tentative Non-Confirmation (TNC) and the Social Security Administration will send a no-match letter. Illinois’ new law requires employers to allow employees to explain any reasons for a failed verification and to refrain from termination of employment or any other adverse action before receiving a final notice of non-confirmation from a government agency.
Employers must provide the following to the employee whenever there is a discrepancy in employment verification information:
The reason for non-confirmation and accompanying available documentation
Instructions on how to correct the deficiency
An explanation of the individual’s right to have representation in certain employment meetings
An explanation of other relevant rights
If an employer opts to use E-Verify, it has certain training and notice requirements that must be met. As the law has numerous components and obligations, it is best to consult with employment counsel when engaging in employment verification.
Limitations Placed on A.I. in the Workplace
The Illinois Human Rights Act has been amended to bar Illinois employers from using predictive artificial intelligence (A.I.), including generative A.I., to discriminate against members of a protected class as identified in the act “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.” Further, employers are disallowed from using zip code data as a proxy for a protected class in any of the above activities.
If an employer uses A.I. for any of the above purposes, it must notify the candidates or employees that will be affected. The Illinois Department of Human Rights will issue guidance on how to implement the law’s requirements, including “the circumstances and conditions that require notice, the time period for providing notice, and the means for providing notice.”
This law will become effective in one year, on January 1, 2026, allowing employers time to modify their hiring and other employment practices so they can remain compliant with these new requirements.
Human Rights Act Protections Are Expanded
The Illinois Human Rights Act prohibits, among other things, discrimination, harassment, and retaliation in employment based on protected classes, such as race, sex, and religion. In 2025, the act will also forbid discrimination on the basis of a person’s “reproductive health decisions,” which refers to the use of “contraception; fertility or sterilization care; assisted reproductive technologies; miscarriage management care; healthcare related to the continuation or termination of pregnancy; or prenatal, intranatal, or postnatal care.”
Further, the act bars harassment in employment on the basis of an individual’s “family responsibilities,” which refers to such things as transporting close family members to medical appointments and accompanying them at their visits. The act, however, does not impose any duty to accommodate employees’ external caregiving responsibilities. (Read more about the need for this amendment and commentary by Prinz's Laura Feldman here.)
The Human Rights Act Filing Deadline Is Extended
The Illinois Human Rights Act currently has a statute of limitations of 300 days, meaning a charge of discrimination must be filed within 300 days of the violation that an individual is reporting. In 2025, that timeline will be lengthened to 2 years. The deadline remains 300 days, however, for filing a charge with the Equal Employment Opportunity Commission (EEOC) in Illinois.
The Whistleblower Act Is Expanded
The Illinois Whistleblower Act already bars an employer from taking an “adverse employment action” against an employee that would violate the law. Now it has been expanded to also bar an employer from even threatening to do so.
Currently, an employee must report “violations of a law, rule or regulation” to be covered by the law’s protections. As of 2025, covered actions will also include reports of a workplace’s “activity, policy or practice” that “poses a significant and specific danger to employees, public health or safety.”
Additionally, such reports can now be lodged with more than just government agencies. Employees will be covered if they report violations internally as well, including to “any supervisor, principal officer, board member, or supervisor in an organization that has a contractual relationship with the employer who makes the employer aware of the disclosure.”
Certain Non-Competes Are Now Barred
Amendments to the Illinois Freedom to Work Act now invalidate any non-competition or non-solicitation agreements for licensed mental health providers insofar as they would create challenges for veterans or first responders wishing to receive mental health care. As stated in the law, these restrictive covenants are invalidated if they are "likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services." The change covers agreements entered into as of January 1, 2025 and beyond, but does not invalidate such restrictive covenants with regard to other sorts of clients.
Since 2022, non-competition agreements have been unenforceable for non-management construction workers in Illinois. As of 2025, an additional amendment to the Illinois Freedom to Work Act will make both non-competition and non-solicitation agreements unenforceable for non-management construction workers. Further, they will be unenforceable regardless of whether workers are covered by a collective bargaining agreement.
Employees Can Opt Out of "Captive Audience” Meetings
A new Worker Freedom of Speech Act disallows employers from requiring employees to attend meetings with the aim of sharing political or religious content. One common variety of such gatherings is the “captive audience” meeting that an employer calls in response to unionizing efforts among its workforce. These meetings often highlight what the employer views as the negative aspects of organized labor. They are often intimidating and result in stymying organizing efforts.
Employers may still hold voluntary meetings on such topics, but they are barred from retaliating against employees who choose not to show up, including through threats, discipline, or termination. Employers must also post a notice of employee rights under the law. Each violation under the law can incur a $1,000 penalty.
Employees Can See More of Their Personnel File
The Illinois Personnel Records Review Act requires an employer to produce personnel records to an employee or former employee within 7 days of receiving a request. Under new amendments, individuals will have access to additional documentation, including paperwork related to employee benefits, employment contracts, employment handbooks, and certain policies and procedures.
The act will also allow individuals to see their pay stubs. An employer will have up to 21 calendar days to comply with this specific portion of a request.
Perhaps the most impactful change is related to enforcement. If an individual files a complaint with the Illinois Department of Labor (IDOL) that an employer has violated this law, the IDOL has 180 days to resolve it. If those 180 days pass without resolution, or if the IDOL states that it is unlikely to reach a resolution within 180 days, an individual is permitted to file a lawsuit in a circuit court.
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How to Keep Up with It All
If modifications on the employment and business law landscape seem overwhelming, follow the advice we provide here for maintaining your awareness of legal changes. For example, consider subscribing to employment law and human resources e-newsletters. Many professional organizations publish weekly or monthly alerts delivered right to your e-mail inbox. As always, if you need help, seek the expert counsel of an employment and business law attorney. The Prinz Law Firm is always ready to help.