New Illinois Employment Laws for 2025: What Chicago Employers and Employees Need to Know

Illinois has introduced several new employment laws for 2025 that will significantly impact both employers and employees. These updates reflect the state’s continued efforts to strengthen workplace protections, improve pay equity, and create more transparent and inclusive work environments. Whether you are an employee trying to understand your rights or an employer striving to stay compliant, it’s essential to become familiar with these changes. Read on to learn about new Illinois employment laws for 2025. If you are a Chicago employer or employee needing help with an employment law matter, contact MacDonald, Lee & Senechalle, Ltd. to speak with an experienced Chicago employment law attorney.

Minimum Wage Increase

Effective January 1, 2025, Illinois raised the state minimum wage from $14.00 to $15.00 per hour for most employees. This is part of the state’s phased plan to reach a $15 minimum wage, and it now applies statewide. For tipped employees, the minimum wage is set at $9.00 per hour (up from $8.40), not including tips. Employers must ensure that tips are sufficient to meet the full minimum wage requirement. Younger workers under the age of 18, who work fewer than 650 hours in a year, must now be paid at least $13.00 per hour.

Effective July 1, 2025, employers in Chicago should note that the city’s local minimum wage rates will exceed the statewide minimum, as follows:

• $16.60 per hour for employers with 4 or more employees;
• $12.62 per hour for tipped employees; and
• $16.50 per hour for youth workers, participants in subsidized temporary youth employment programs, and those in subsidized transitional employment programs.

The minimum wage increase requires employers to promptly update their payroll systems, wage posters, and employee handbooks to reflect these new rates. Failure to comply can expose businesses to wage disputes and potential penalties.

Mandatory Pay Transparency in Job Postings

Illinois has taken a major step toward pay equity by requiring most employers to include wage or salary ranges and a general description of benefits in all job postings. This new pay transparency law applies to businesses with 15 or more employees. Whether the posting is public or internal, employers must provide this information upfront, helping job applicants and current employees better understand compensation structures.

In addition to updating job advertisements, employers must retain records of pay scales and benefits for at least five years. The law is intended to close pay gaps and reduce wage discrimination by promoting open, honest conversations about compensation.

New Restrictions on Mandatory Meetings

Illinois has passed the Worker Freedom of Speech Act, which prohibits employers from forcing employees to attend meetings focused on religious or political matters, including union organizing efforts. Commonly referred to as “captive audience” meetings, these gatherings have often been used to dissuade employees from supporting unionization. Under the new law, attendance at these types of meetings must be strictly voluntary. Employers are also prohibited from retaliating against employees who choose not to participate.

This legislation supports employees’ rights to make personal decisions about politics, religion, and workplace organizing without undue pressure from their employers. Companies should carefully review their internal policies and supervisory practices to ensure compliance with this significant change.

Expanded Anti-Discrimination Protections

Illinois continues to lead in promoting workplace fairness by expanding its anti-discrimination laws. The Illinois Human Rights Act now includes family responsibilities as a protected category. This means that employees who have caregiving duties for children, spouses, parents, grandparents, or other close family members are shielded from discrimination based on those responsibilities. Employers cannot take adverse actions, such as firing or demoting an employee, because they are a caregiver.

Additionally, Illinois has added new protections related to reproductive health decisions. Employees cannot be discriminated against based on their choices or medical care related to contraception, fertility treatments, pregnancy, or other reproductive health services. These expansions ensure that employees can make deeply personal decisions without fear of losing their job or facing unfair treatment at work.

Another important update is the extension of the deadline for filing discrimination complaints. Employees now have up to two years (instead of 300 days) to file a complaint under the Illinois Human Rights Act, significantly increasing the time workers have to come forward if they experience discrimination or harassment.

Enhanced Wage Payment Recordkeeping

Under amendments to the Illinois Wage Payment and Collection Act, employers must now keep detailed pay records, including pay stubs, for a minimum of three years. This recordkeeping requirement applies not just to current employees, but also to former employees who may later request their pay information. Employers must provide these records, either electronically or on paper, within 21 calendar days of receiving a request. Additionally, companies cannot require former employees to retrieve their own records from closed systems or outside payroll providers.

To meet this requirement, employers should establish a consistent system for storing payroll records and designating a point of contact who can efficiently handle record requests.

Updated Child Labor Laws

Illinois has also revised its child labor laws to better protect young workers under the age of 16. The new rules clarify permissible work hours, break periods, and the types of jobs minors are allowed to perform. In addition to updating these standards, the law strengthens protections against retaliation when minors or their parents raise concerns about unsafe work conditions or labor violations. Employers who hire minors should carefully review the updated guidelines to ensure compliance with these revised protections.

Whistleblower Protections Strengthened

A new Illinois law bolsters whistleblower protections by making it illegal to retaliate against employees who, in good faith, report suspected legal violations or unsafe working conditions. This law empowers workers to speak out when they witness wrongdoing, reinforcing a workplace culture of accountability and transparency. Companies should take this opportunity to review their internal reporting procedures and anti-retaliation policies to ensure that employees feel safe coming forward.

New E-Verify Posting and Training Requirements

For employers who use the federal E-Verify system to confirm employment eligibility, Illinois now requires additional compliance measures. Employers must post clear notices about their use of E-Verify and must ensure that relevant personnel complete training on how to use the system appropriately. The goal is to prevent discriminatory practices and protect employee rights throughout the hiring process.

Phasing Out Sub-Minimum Wages for Disabled Workers

Illinois has begun a multi-year process to eliminate the sub-minimum wage for workers with disabilities. Historically, some employers were permitted to pay disabled employees less than the minimum wage under special federal certificates. A new Illinois law sets a deadline of December 31, 2029, for phasing out this practice. Employers who currently pay sub-minimum wages must begin transitioning toward full minimum wage pay and can access state-supported resources to help with this adjustment.

What Employers Should Do Now

With so many changes taking effect in 2025, employers should take proactive steps to update their policies and procedures. Key priorities include:

• Reviewing and updating employee handbooks, job postings, and payroll systems.
• Ensuring that recordkeeping systems can meet the new pay stub and job posting requirements.
• Providing management training on new anti-discrimination protections and whistleblower laws.
• Revising policies on employee meetings and political or religious discussions.
• Confirming that hiring practices, especially those involving minors or E-Verify, are fully compliant.

Contact MacDonald, Lee & Senechalle, Ltd. for Help With Employment Law in Chicago

Illinois has introduced some of the most employee-friendly laws in the country for 2025. These changes are designed to promote fairness, transparency, and safety in the workplace, while giving employees more power to protect their rights. Employers who act now to align their policies with the new laws will be in the best position to avoid disputes and foster a supportive work environment.

If you need guidance on how these new laws apply to your business or your employment situation, the experienced attorneys at MacDonald, Lee & Senechalle, Ltd. are here to help. Contact us today to schedule a consultation.