Beginning January 1, 2026, Illinois employers will face expanded obligations as a result of amendments to the Illinois Workplace Transparency Act (“IWTA” or “Act”) following the enactment of House Bill 3638. The amendments, which Governor JB Pritzker signed into law on August 15, 2025, significantly broaden protections for employees and impose new requirements and restrictions on settlement and termination agreements. These amendments apply to any employment contract entered into, modified, or extended on or after January 1, 2026, with the exception of collective bargaining agreements covered by federal or Illinois public labor statutes. The most impactful amendments to the IWTA are summarized below.
Scope of Coverage Under the Amended Act
The 2025 amendments do not modify the definitions of “Employee” and “Employer” in the Illinois Human Rights Act (“IHRA”). The Act continues to apply to employers with one or more employees in Illinois who are employed for 20 or more weeks during a calendar year. Employees are broadly defined to include individuals providing services for remuneration within the state, and the Act’s coverage also extends to contractors and consultants engaged under contract.
Expanded Definition of Unlawful Employment Practice
The 2025 amendments significantly expand the definition of an “unlawful employment practice.” Previously, the Act limited an “unlawful employment practice” to discrimination, harassment, or retaliation. But beginning January 1, 2026,...
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