Summary of August 2025 Labor Law Updates for Chicago, Illinois
August 2025 was a heavy month for Illinois employment law changes, especially through legislative action. The new laws expand protections, raise penalties, improve transparency, and force many employers to revisit their policies and documentation. If you have specific questions about how any of these apply to your employer, workplace, or situation — or want help reviewing or drafting compliant policies — contact us at HKM Employment Attorneys (https://hkm.com).
Nursing Mothers in the Workplace Act — Legislation
Date: August 1, 2025
Summary:
Governor Pritzker signed SB 0212, an amendment to the Nursing Mothers in the Workplace Act. Under the amendment, for one year after childbirth, an employee has the right to reasonable break time to express breast milk each time she needs to. The employer must compensate the employee for that time at her regular rate, and cannot force the employee to use paid leave or reduce her compensation during those breaks.
Implications:
Affects employers in Illinois broadly. Employers must adjust timekeeping & payroll practices, ensure break policies allow for expressing breast milk without reducing pay or forcing use of existing paid leave. Non-compliance could result in wage disputes or fines.
Military Leave – Funeral Honors Details Added — Legislation
Date: August 1, 2025
Summary:
The Family Military Leave Act* was renamed to the Military Leave Act via SB 0220. It now requires employers with 51 or more employees to provide paid leave (at the employee’s regular rate) for funeral honors details. Eligible employees may use up to 8 hours per calendar month, up to 40 hours per year (more only if permitted by the employer or via CBA). Qualifying persons include active or retired members of armed forces or reserve, or registered/authorized providers.
Implications:
Employers of sizably large workforces must add this leave, track eligibility and usage, and ensure policies don’t reduce other paid leave. HR must update leave policies and employee handbooks.
Equal Pay Act Amendments — Legislation
Date: Effective immediately after passage (around August 2025)
Summary:
HB 2488 changed Illinois’s Equal Pay Act. It removed references to the federal EEO-1 reporting option. Now, any employer in Illinois with 100+ employees must submit a detailed list of all employees for the past calendar year, broken down by gender, race, ethnicity, including details like start date, county of work, and other data the Department of Labor deems necessary. It must also include a statement confirming that average compensation for female and minority employees is not “consistently below” that for male/non-minority employees in each “job category.” Job category definitions are now specific (executives, managers, professionals, etc.).
Implications:
Large employers need to ensure their pay records and reporting systems are capable of gathering and submitting all required data. Audit and compliance risk increased; paying attention to pay equity across categories is more important. Employers should update internal policies and data collection/reporting.
Wage Payment & Collection Act (IWPCA) Enhancements — Legislation / Enforcement
Date: August 1, 2025
Summary:
Public Act 104-135 amends the IWPCA. Key changes include:
- For wage claims adjudicated through administrative hearing with the Illinois Department of Labor (IDOL), damages of 5% per month accrue for each month an underpayment remains unpaid until IDOL’s final order becomes a debt due & owed.
- If employer is ordered to pay unpaid wages, a non-waivable administrative fee to IDOL is increased by $250.
- For claims adjudicated through an IDOL hearing, there’s also a 1% penalty per calendar day that underpayments remain uncorrected after the order, until the order becomes a debt to the state.
Also, via SB 2164, the amendment retroactively bolsters enforcement: if an employer fails to pay or timely challenge an IDOL order, the state may use all available legal remedies to collect, and the order may be enforced like a civil court judgment.
Implications:
Employers must be very prompt in paying any wage determinations, and must treat unpaid wage obligations seriously. Waiting or delaying can lead to steep penalties and interest. HR/payroll needs to track deadlines, respond to IDOL orders, and ensure compliance to avoid costly liabilities.
Workplace Transparency Act Amendments — Legislation
Date: August 15, 2025 (signed), effective June 1, 2026 for many provisions
Summary:
House Bill 3638 amends the Illinois Workplace Transparency Act (IWTA). Key changes include:
Expanded protections for employees, contractors, and consultants around contract provisions. Some “unilateral” terms (i.e. terms imposed only by the employer) are prohibited. Stronger requirements for valid “mutual” conditions, particularly in termination & settlement agreements. Tightening or clarifying rules around confidentiality clauses and how agreements can limit claims, among other contractual terms.
Implications:
Employers need to review existing and future contracts, settlement agreements, confidentiality and non-disparagement clauses, and ensure that they comply with stricter standards. Policies that were previously acceptable may need adjustment. Effective date gives time to prepare (many amendments effective June 1, 2026).
Victims’ Economic Security & Safety Act (VESSA) – Electronic Device Use Amendments — Legislation
Date: August 15, 2025
Summary:
Under HB 1278, the amendment to VESSA addresses employer-provided electronic devices. Previously, many employers prohibited personal use of employer devices. The new law now allows employees to use such devices (phones, etc.) to record incidents of domestic violence, sexual violence, gender violence, or any crime of violence committed against the employee or family/household member. Also, employers are prohibited from discriminating or retaliating against employees for using employer-provided devices in this way.
Implications:
Employers must revise device-use policies: explicitly permit (or at least not prohibit) personal use in limited circumstances (the enumerated crimes/violence). Also, policies must include non-retaliation and non-discrimination protections. Communication and training will be needed so both management and employees are aware of rights under the amended VESSA.
Conclusion: Looking Back on Illinois Labor Law Updates from August 2025
If recent Illinois rulings on wrongful termination, wage theft, or discrimination have you rethinking your legal options, know that support is just a phone call away. At HKM Employment Attorneys in Chicago, our fearless attorneys have recovered over $250 million for clients since 2003 and regularly take on complex cases involving breach of contract, hostile work environments, and EEOC claims—backed by Super Lawyers and top‑tier recognition. We offer clear communication, strategic advocacy, and no-fee-unless-we-win representation. If recent case developments have struck a chord, reach out to our Chicago office to explore how we can stand with you and secure your workplace rights.
