Illinois HR Compliance Guide: 2025
An interactive overview of key legal updates and ongoing requirements for Illinois employers.
City of Chicago Minimum Wage
$16.60
Per Hour
Effective July 1, 2025 (for employers with 4+ employees).
Focus of 2025 Legal Changes
The latest legislation introduces significant updates across several key areas of human resources management.
Deep Dive: What's New in 2025
Pay Transparency (HB 3129)
Employers with 15+ employees must now disclose pay scales and benefits in all job postings.
- Include a good-faith wage or salary range.
- Provide a general description of benefits.
- Retain job posting and pay scale records for 5 years.
Expanded Protected Classes
Anti-discrimination laws are updated to include new protections for employees.
- Prohibits discrimination based on "family responsibilities".
- Prohibits discrimination based on "reproductive health decisions".
- Requires updates to handbooks and manager training.
Personnel Record Rules (IPRRA)
The requirements for maintaining and providing employee records have been amended.
- Employee pay stubs must be retained for at least 3 years.
- Must offer to provide prior year's pay stubs upon separation if electronic access is lost.
Worker Freedom of Speech Act
New law protects employees from being required to attend certain employer-sponsored meetings.
- Applies to meetings concerning the employer's views on political or religious matters.
- Policies must not penalize employees for declining to attend.
Looking Ahead: What's Coming in 2026
While specific legislation for 2026 is still developing, HR professionals should keep an eye on these evolving areas of compliance and best practices.
AI in HR & Employment
Increased scrutiny and potential regulations around the use of Artificial Intelligence in hiring, performance management, and employee monitoring to ensure fairness and prevent bias.
Data Privacy & Employee Monitoring
New or expanded laws regarding how employee data is collected, stored, and used, especially with the rise of remote work and digital tools. Focus on transparency and consent.
Remote Work & Hybrid Policies
Continued development of regulations addressing remote work, including tax implications, state-specific labor laws for out-of-state employees, and equitable treatment for hybrid teams.
Pay Equity Audits & Reporting
Potential for more stringent requirements for companies to conduct and report on internal pay equity audits, moving beyond just transparency to active remediation of disparities.
Gig Economy & Worker Classification
Ongoing legislative efforts to clarify and potentially redefine worker classification (employee vs. independent contractor), impacting benefits, taxes, and labor protections.
Mental Health & Wellness Support
Increased focus on employer responsibilities for employee mental health, potentially leading to new mandates for support programs, leave, or accommodations.
Core Compliance Areas
Several state laws dictate how employees must be compensated and what leave they are entitled to. Compliance often depends on the size of your workforce.