As the new year approaches, Illinois will ring in 2026 with a new wave of legislative changes impacting employment practices. Among the most notable are expansions to employee leave entitlements and new limitations on certain employment agreements under the Illinois Workplace Transparency Act. By understanding these developments early and implementing proactive policy updates, employers can position themselves for a smooth transition into the new year. The following highlights the key provisions employers should know and offers practical steps for maintaining compliance in the year ahead.

Extending Existing Employment Laws

Many of the changes Illinois employers will see in 2026 come through amendments to familiar Illinois employment statutes. With the exception of the Military Leave Act, the following amendments are set to take effect on January 1, 2026.

• Illinois Workplace Transparency Act (IWTA): Recent amendments to the IWTA significantly broaden the scope of the statute and impose new restrictions on employment-related agreements. The IWTA focuses primarily on prohibiting confidentiality and arbitration provisions that limit disclosure of “unlawful employment practices”—which the Act previously defined as discrimination, harassment, or retaliation claims. The latest changes to the IWTA now extend the definition of “unlawful employment practices” to cover any practice made unlawful under the Illinois Human Rights Act or Title VII of the Civil Rights Act of 1964, or any...

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