Alert

Mar 3, 2026

Blog Post | Illinois Employment Law Update: New Requirements Under the Workplace Transparency Act

As of January 1, 2026, employers are required to adhere to certain increased compliance obligations created by recent amendments to the Illinois Workplace Transparency Act (“IWTA” or the “Act”). The IWTA generally imposes procedural requirements on employment-related agreements with Illinois employees. The new amendments broaden employee protections and impose additional restrictions with respect to employment-related agreements.

Broadening Protections and Rights for Employees:

1. Expands the definition of “unlawful employment practices” to include any unlawful practice under a state or federal law governing employment. This means an unlawful practice goes beyond discrimination, harassment, and retaliation to now include wage claims, safety violations and other labor disputes.

2. Permits employees to testify not only in administrative, legislative and judicial proceedings, but also arbitrations and depositions taken in connection with any of these proceedings. 

3. Affords additional damages to current, former or prospective employees under the Act to include consequential damages, in addition to reasonable attorney’s fees and costs already afforded by the Act. 

Restricting Employment-Agreement Terms and Conditions

1. Prohibits employers from including certain unilateral terms as a condition of new or continued employment; namely provisions that: 

a. Shorten the applicable statute of limitations;
b. Apply non-Illinois law to an Illinois-based employment claim; and
c. Require adjudication outside of Illinois for an Illinois-based employment claim.

Additionally, employers are prohibited from including any unilateral terms as a condition of new or continued employment that have the purpose of preventing an employee from engaging in “concerted activity” to address work-related issues. “Concerted activity” is the right to collectively bargain, participate in labor organization or discuss other work-related issues with one or more co-workers.  

These conditions, however, are permitted if they are considered mutual conditions of employment or continued employment. To establish mutuality, the condition must be (i) in writing, (ii) be negotiated in good faith for actual consideration, and (iii) acknowledge the employee’s right to report unlawful employment practices, as well as an employee’s right to engage in concerted activity to address work-related issues.

2. Places certain restrictions on termination and separation agreements, including:

a. Confidentiality provisions in these agreements:
i. May not restrict future or prospective concerted activity related to workplace conditions; and
ii. Must be supported by consideration that is separate and apart from any consideration provided for a release of claims or any other terms.
b. An employer is prohibited from unilaterally including language that states any promise of confidentiality in the agreement is the preference of the employee.

The amendments apply to employment agreements and termination and separation agreements entered into, modified, or extended from January 1, 2026 onward. Employers should review their current employment-related contracts, including employment agreements, amendments, offer letters, separation agreements, non-disclosure agreements, etc. to ensure that they comply with the IWTA updates. 

If you need any assistance reviewing, updating or preparing your employment-related agreements and policies to comply with the law, please contact the Roetzel Team.