In a move that significantly broadens employee protection and employer liability in Illinois, Public Act 103-0867, which was enacted in late 2024, ushered in revisions to the Illinois Whistleblower Act, effective January 1, 2025. These updates reinforce the Act’s protections and create new pathways for relief. Here’s what you need to know:

1. The Act Broadens the Definition of “Employee”

One of the most consequential changes lies in who qualifies for protection. The Act now employs a stringent ABC test to distinguish employees from independent contractors:

• If the worker is free from employer control.
• If the work is outside the employer’s usual course of business or, if performed in the employer’s business, outside its premises.
• If the worker is in an independently established trade or profession.
  Only if all three are satisfied can someone be treated as an independent contractor, excluded from protection.

Otherwise, they are an “employee” under the Act. This includes licensed physicians working at state-funded facilities.

2. Internal Disclosures Are Now Protected

Illinois has taken a decisive step beyond its previous whistleblower regime. The updated law protects individuals not only for reporting misconduct to government or law-enforcement agencies, but also for disclosures made internally. This means that employees are protected when reporting to supervisors, principal officers, board members, or those in contractual oversight, so long as the whistleblower has a...

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