Do you have employees in Illinois subject to an arbitration agreement? What about severance or settlement agreements? Restrictive covenants? Before ringing in the New Year, be sure to review all employment-related agreements to determine if such agreements need to be modified to comply with the new Illinois Workplace Transparency Act (IWTA) amendments. The expanded law, set to take effect on January 1, will limit the types of waivers and restrictions that can be included in employment agreements for Illinois employees. Here’s a rundown of what’s in and what’s out in Illinois next year.

A Quick Refresher

Illinois originally enacted the IWTA in 2020 in the wake of the #MeToo Movement. The current version sets several key prohibitions and requirements for what should be included in employment agreements. Notably, the IWTA makes it unlawful for employers to prohibit, prevent, or restrict employees from reporting certain allegations of unlawful conduct to officials.

The IWTA also:

• prohibits employers from restricting employees from testifying when required by court order, subpoena, or written request from an administrative agency or the Illinois Legislature; and
• restricts and limits the type of confidentiality provisions that can be contained in settlement or termination agreements. Specific conditions must be met to include such confidentiality provisions.

Key Changes

Public Act 104-320, signed by Governor Pritzker in August, significantly amends and expands the IWTA. It’s...

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