In Chicago’s competitive workforce, employment laws continue to evolve to reflect modern workplaces and shifting social priorities. From pay transparency and scheduling fairness to stronger whistleblower protections, Illinois employees have new rights designed to promote equity and accountability at work.
Understanding these changes is crucial for employees and employers; for those navigating disputes, legal guidance can be the difference between confusion and clarity.
Employee Rights in Chicago
Employees in Chicago are protected by state and federal employment laws, many of which extend beyond the national baseline. These laws govern how workers are hired, paid, disciplined, and terminated, ensuring individuals are treated fairly regardless of position or background.
Chicago workers are entitled to:
- Fair Compensation. Illinois’ minimum wage currently exceeds the federal rate, and Chicago’s local ordinances set even higher thresholds depending on employer size.
- Safe Working Conditions. Under the Illinois Occupational Safety & Health Act, employees have the right to report unsafe or hazardous environments without retaliation.
- Freedom from Discrimination. Title VII of the Civil Rights Act and the Illinois Human Rights Act protect against discrimination based on race, gender, age, religion, disability, national origin, or sexual orientation.
- Paid Leave. Chicago’s Paid Sick Leave Ordinance allows workers to earn up to 40 hours of paid sick leave per year, while Illinois’ Paid Leave for All Workers Act (effective January 2024) guarantees at least five days of paid time off annually for any reason.
- Whistleblower Protections. Employees cannot be disciplined or terminated for reporting legal violations, safety issues, or unethical practices.
- Protection from Wage Theft. Employers must provide timely and accurate pay, overtime compensation, and final paychecks under the Illinois Wage Payment & Collection Act.
These rights form the backbone of modern employment in Chicago, providing clear standards for accountability and fairness.
New Employment Laws in Chicago & Illinois
Illinois lawmakers have implemented several key updates for 2025 that affect employers and employees across Chicago. These changes strengthen workplace transparency, expand worker protections, and align Illinois law with national labor trends.
Recent Illinois Employment Law Updates
Equal Pay Registration & Data Reporting Expansion
Companies with 100 or more employees must now submit detailed demographic and wage data to the Illinois Department of Labor, strengthening efforts to close gender and racial pay gaps.
Predictable Scheduling Act
Under Chicago’s Fair Workweek Ordinance, certain employers are now required to provide workers with predictable schedules and compensation for last-minute changes. The law applies to employees in seven covered industries—Building Services, Healthcare, Hotels, Manufacturing, Restaurants, Retail, and Warehouse Services—who earn $32.60 per hour or less or $62,561.90 per year or less.
Covered employees are entitled to several key protections designed to promote fairness and work-life balance:
- Advance Notice of Work Schedules: Employers must provide schedules in advance so employees can plan accordingly.
- Right to Decline Unscheduled Hours: Workers can refuse any hours not included in their posted schedule.
- Predictability Pay: Employees receive one additional hour of pay for any employer-initiated schedule change made within 14 days of the shift.
- Rest Between Shifts: Employees have the right to decline work hours that begin less than 10 hours after the end of their previous shift.
These provisions are intended to reduce last-minute scheduling changes, promote transparency, and help employees achieve a more sustainable balance between their professional and personal lives.
Non-Compete & Non-Solicitation Limits
Illinois continues to refine its restrictions on employment agreements that limit post-employment activity. Under the Illinois Freedom to Work Act (820 ILCS 90/), non-compete agreements are void and unenforceable for employees earning less than $90,000 per year, and non-solicitation agreements are restricted for those earning less than $45,000 per year.
These thresholds will automatically increase every five years to reflect inflation, with the next adjustment scheduled for January 1, 2027. The Act also requires employers to provide employees with at least 14 days to review an agreement and to advise them in writing to consult an attorney before signing.
To be enforceable, a restrictive covenant must be supported by adequate consideration—typically at least two years of employment—or another tangible benefit. Employers must also ensure these agreements are reasonable and transparent in geographic scope, duration, and purpose.
Increased Whistleblower Protections
Recent amendments to the Illinois Whistleblower Act (740 ILCS 174/) have expanded protections for workers who report misconduct or unsafe practices. The law now explicitly protects digital and electronic reporting, ensuring that employees who file complaints online or through internal platforms are afforded the same safeguards as those who report in person.
Importantly, coverage has been extended to independent contractors and third-party workers, reflecting modern workplace structures. Employers are prohibited from retaliating against any worker for disclosing legal or safety violations, whether through government channels or internal systems.
This update underscores Illinois’s commitment to encouraging transparency and accountability in both public and private sectors.
Enhanced Workplace Transparency Requirements
To strengthen pay equity and reduce wage discrimination, updates to the Illinois Equal Pay Act of 2003 (820 ILCS 112/)—through Pay Transparency amendment—require employers with 15 or more employees to include salary ranges and benefits in all job postings beginning January 1, 2025.
This provision aligns Illinois with a growing number of states adopting pay transparency laws. Employers must clearly disclose the wage scale, pay range, and general benefits applicable to the position, whether posted internally or externally. Failure to comply may result in civil penalties or investigations by the Illinois Department of Labor (IDOL).
By promoting openness around compensation, Illinois aims to help workers make informed employment decisions while supporting fair hiring practices.
Expanded Family Leave Rights
The Illinois Family Bereavement Leave Act (820 ILCS 154/) expanded the scope of protected leave under the state’s Family and Medical Leave framework. Employees are now entitled to take unpaid, job-protected leave for additional family relationships and circumstances beyond the death of a child or spouse.
Covered situations now include miscarriage, stillbirth, failed adoption or surrogacy, and unsuccessful reproductive treatments, as well as the loss of a stepchild, sibling, parent-in-law, or grandparent. Employers must allow up to two weeks (10 working days) of leave for each qualifying event.
This expansion reflects Illinois’s broader recognition of the emotional and physical impacts of family loss and fertility-related challenges, offering employees flexibility to recover without risking job security.
How MDR LAW LLC Helps Employees
Employment disputes can escalate quickly, affecting both income and career trajectory. At MDR LAW LLC, we work with employees across Chicago to assess workplace violations, build factual records, and pursue remedies through negotiation or litigation when necessary.
Our attorneys assist clients by:
- Reviewing Employment Agreements. We analyze contracts, severance packages, and non-compete clauses to identify potential violations of state and federal law.
- Advising on New Legal Protections. We ensure clients understand how recent Illinois employment law updates—such as pay transparency and predictable scheduling—apply to their situation.
- Filing Administrative Claims. We represent employees before agencies such as the Illinois Department of Labor (IDOL), the Equal Employment Opportunity Commission (EEOC), or the Illinois Department of Human Rights (IDHR).
- Negotiating Settlements. We engage with employers and insurers to resolve discrimination, wage theft, retaliation, or wrongful termination disputes.
- Litigating in State & Federal Courts. When informal resolution is not possible, we prepare comprehensive cases to protect our clients’ rights under Illinois and federal law.
By staying at the forefront of Illinois’ evolving labor landscape, our firm helps clients navigate disputes with clarity and confidence.
Staying Informed & Protected
Employment law in Chicago is dynamic—what’s compliant today may change tomorrow. Employees who stay informed about their rights and seek timely legal advice are best positioned to protect themselves from workplace injustice.
If you believe your rights have been violated or have questions about new Illinois employment laws, MDR LAW LLC can help. We offer employment law defense tailored to each client, delivering detailed evaluations and pragmatic legal strategies.
Call (312) 500-7944 or contact us online today to schedule a consultation and learn how our Chicago employment attorneys can guide you through the legal process.