On August 12, 2024, Illinois Governor JB Pritzker approved several new laws, many of which will affect small businesses either directly or indirectly. Below are some key legislative updates:

Employee Personnel Records Access
PA 103-0727 (HB 3763) mandates that employers with at least five employees must provide personnel records upon request through text messages. It also expands the types of documents that employees can inspect and makes it easier for employees to take legal action for violations. This will be in effect starting January 1, 2025.

Expansion of the Whistleblower Act
PA 103-0867 (HB 5561) broadens the Whistleblower Act’s reach and increases penalties for non-compliance. It also gives the Attorney General new authority to intervene in or initiate civil cases against employers on behalf of the state. The law goes into effect on January 1, 2025.

Regulations on Work Authorization Verification
PA 103-0879 (SB 508) specifies that employers cannot impose stricter work authorization requirements than those mandated by federal law. It also details employer actions in the case of discrepancies in verification records. Effective January 1, 2025.

Carbon Sequestration Regulation
PA 103-0651 (SB 1289) introduces a new framework for carbon sequestration projects, including a temporary ban on new carbon pipelines until federal rules are established. It also addresses eminent domain and fee reductions for certain projects. This took effect on July 18, 2024.

Workers’ Compensation Adjustments
PA 103-0590 (SB 1996) raises the surcharge on workers’ compensation insurance and self-insurance fees. The law has been in effect since June 5, 2024.

Limitations on Non-Solicitation Agreements in Construction
PA 103-0921 (SB 2770) restricts the use of non-solicitation agreements for certain construction workers. These restrictions do not apply to management or employees who own part of the company. The law takes effect on January 1, 2025.

Workforce Development Reporting
PA 103-0928 (SB 2907) requires the Illinois Department of Commerce and Economic Opportunity to produce a comprehensive report on job training and workforce development programs by August 9, 2024.

Clarifications to the Biometric Information Protection Act (BIPA)
PA 103-0769 (SB 2979) clarifies that liability under BIPA is incurred per person rather than per incident. It also allows for the use of electronic signatures for consent. These changes are not retroactive and became effective on August 2, 2024.

Increased Access to Paystubs
PA 103-0953 (SB 3208) requires employers to keep employee paystubs for three years after payment. Employees can request copies within 21 days, and former employees have up to one year after leaving to ask for their paystubs. However, employers are not obligated to fulfill more than two requests within a 12-month period. If electronic paystubs are used, employers must offer separated employees access to paystubs from the previous year. This law becomes effective on January 1, 2025.

New Reporting Requirements for Pharmacy Benefit Managers (PBMs)
PA 103-0593 (SB 3268) introduces stricter reporting guidelines for PBMs, increasing transparency in the pharmaceutical insurance sector and supporting independent pharmacists. This law went into effect on June 7, 2024.

Extended Timeline for Filing Human Rights Complaints
PA 103-0973 (SB 3310) significantly increases the timeframe for filing human rights complaints against employers, extending it from 300 days to two years. This change makes Illinois an outlier compared to regional and federal norms. The law takes effect on January 1, 2025.

Restrictions on Employer Discussions about Unionization
PA 103-0722 (SB 3649) limits employers' ability to mandate workplace meetings that discuss unionization, religious, or political issues. The law provides employees legal recourse if they believe an employer retaliated for not attending such meetings. Effective January 1, 2025.

Revisions for Day and Temporary Workers
PA 103-1030 (SB 3650) adjusts the rules surrounding staffing agencies and third-party employers that hire day or temporary workers, making the law more feasible but maintaining some of the more stringent provisions. This includes new paperwork obligations for staffing agencies. Effective as of August 9, 2024.

You can access the full texts of these bills through the Illinois General Assembly website for more in-depth details on each

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