New amendments to the Illinois Workplace Transparency Act expand employee and consultant/contractor protections, including prohibitions on various “unilateral” contract provisions imposed as a condition of employment and enhanced requirements for valid “mutual” conditions and for confidentiality clauses in termination and settlement agreements.
Illinois Governor J.B. Pritzker signed House Bill 3638 into law on August 15, 2025. The amended Act applies to contracts entered into, modified, or extended on or after its effective date. The law, set to go into effect on June 1, 2026, amends the Illinois Workplace Transparency Act (IWTA or the Act) in several key ways. The following is a summary of various amendments. It is not a comprehensive analysis of the Act or all of its amended provisions.
The amended Act broadens the definition of “unlawful employment practice” to encompass any practice made unlawful by any federal or Illinois state employment law. It also now provides protections for employees participating in “concerted activity.” Additionally, and perhaps most significantly for employers, the amendments add restrictions on the use of certain “unilateral” conditions in employment agreements and expand the requirements for certain legally enforceable “mutual” conditions and agreements, as well as for certain confidentiality provisions in termination and settlement agreements. Lastly, the amended Act introduces a new remedy of consequential damages that employees may...
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