Are You Prepared for the Coming Changes in IL Employment Law?

Business law is a complex area of the law and successful business owners must have a good grasp of these laws. As a business owner in Illinois, you should be aware that there have been some notable changes in employment law, which will require a review of employee handbooks and business policies. Many of the new laws will take effect on January 1, 2025, although some will have different effective dates.

Business laws change fairly frequently, and business owners can benefit from having an experienced Naperville, IL business law attorney from Gierach Law Firm who can ensure the business is properly following all necessary laws and regulations. Owning and running a business can be exhilarating and satisfying while also necessitating plenty of paperwork and diligence. The following changes in employment law may have an effect on your business.

Calculations for Direct Hire Pay for Staffing Companies

This amendment offers staffing companies two methods for calculating hourly pay. Either a temporary worker must be paid a minimum of the rate of pay of the client’s lowest-paid direct-hired regular employee or not less than the median base hourly rate of workers in substantially similar job classifications. If the second method is used, a temporary worker who works more than 4,160 hours within a four-year period must not be paid less than the base hourly rate of the 75^th percentile of similar workers.

Changes to the Illinois Personnel Record Review Act

Effective January 1, 2025, employees may request an inspection of their personnel file to review documents related to decisions taken by their employer against them. Employees will have more access to their own employee records, while the period of time employers are allowed to produce these records will be reduced to seven days.

Having access to these records will support potential employment-related claims. Employers will not be required to provide records that would compromise trade secrets, client lists, financial data, or sales projections. Employees will be allowed to make two requests for their personnel records per year.

Amendments to the IHRA (Illinois Human Rights Act)

Four amendments to the IHRA can significantly impact Illinois businesses. Effective January 1, 2025, employees have two years rather than the previous 300 days to file suit against an employer for harassment, retaliation, or workplace discrimination. All Illinois employers, including those with fewer than 15 employees, are subject to this new amendment.

Next, a new category has been added to the Illinois list of protected groups. Beginning on January 1, 2025, employees may not be discriminated against because of reproductive health decisions. This is in addition to race, religion, national origin, physical or mental disabilities, color, sex, age, ancestry, sexual orientation, pregnancy, military status, marital status, citizenship status, language, work authorization status, conviction and arrest records, and gender-related identification.

Additionally, discrimination is now prohibited for employees who are providing personal care to a family member or have other serious family responsibilities. Personal care can include providing transportation for medical appointments or staying home from work to provide care for a sick parent or child. This amendment is effective January 1, 2025.

The last amendment to the IHRA will become effective on January 1, 2026. This amendment prohibits employment discrimination by an employer who uses AI tools when making hiring and employment decisions – if the AI is discriminatory. Employers are also prohibited under this amendment from using zip codes as a proxy for a protected class to prevent AI algorithms from excluding applicants whose zip codes contain high concentrations of minorities. Additional changes to Illinois employment law can be found here.

Contact a Naperville, IL Business Law Attorney

Attorney Denice Gierach combines her education as a lawyer, a CPA, and her master’s degree in management with her experience as a lawyer and business owner to provide exceptional outcomes for her clients. It can be beneficial to speak to a Naperville, Illinois, business law attorney from Gierach Law Firm, LLC, who has a unique approach to client service. Contact Gierach Law Firm at 630-228-9413 to schedule a meeting to discuss your Illinois business.