Illinois Employee Handbook Requirements (2026)

The Illinois Paid Leave for All Workers Act (820 ILCS 192), effective January 1, 2024, makes Illinois one of only three states requiring paid leave for any reason, not just sick leave. Every employer in the state must provide 40 hours of paid leave per year, accrued at 1 hour per 40 hours worked. Employees can use it for literally anything: a mental health day, a kid's soccer game, a Tuesday they just don't feel like working.

That sounds straightforward until you add Chicago. The Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (effective December 31, 2024) doesn't just mirror the state law. It adds to it. Chicago employers must provide:

• 40 hours of paid leave (usable for any reason, mirroring state law)
• 40 hours of paid sick leave (separate bank, restricted to illness, medical care, domestic violence, and similar qualifying reasons)

That's 80 total hours of protected paid time for Chicago employees, compared to 40 for the rest of the state. Employers who operate in both Chicago and downstate Illinois need two different leave policies. One won't cover both.

Common mistakes: treating the state law as sick leave (it's not, and you cannot require a reason), requiring documentation for state paid leave usage, and failing to carry over unused leave (Illinois requires it, though employers can cap usage at 40 hours per year). Chicago's sick leave must also carry over up to 80 hours.

The fix: Build separate leave banks for Chicago vs. rest-of-state employees. Train managers that the state paid leave requires zero justification. Update your handbook with both policies and make sure your PTO tracking system handles dual accrual.

Sources: 820 ILCS 192 (Paid Leave for All Workers Act); Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (Municipal Code 1-24); Illinois Department of Labor Paid Leave FAQ (2024).

The Illinois Biometric Information Privacy Act (740 ILCS 14) isn't technically a "handbook policy," but it affects every employer that uses fingerprint scanners, facial recognition, or retina scans. The penalties are staggering: $1,000 per negligent violation and $5,000 per intentional or reckless violation. Per scan. Per employee.

BIPA requires employers to: (1) have a written policy for retention and destruction of biometric data, (2) inform employees in writing about what biometric data is collected and why, (3) obtain written consent before collecting any biometric data, and (4) never sell, lease, or profit from biometric data.

The settlement numbers speak for themselves. Facebook paid $650 million in 2021 for its photo-tagging feature. BNSF Railway was hit with a $228 million jury verdict in 2022 for scanning truck drivers' fingerprints without consent. White Castle settled for roughly $9.4 million in 2024 after the Illinois Supreme Court ruled each individual scan constituted a separate violation. Google paid $100 million in 2022 over Google Photos facial recognition.

What makes BIPA uniquely dangerous is the private right of action. Any affected individual can sue, not just a government agency. This has fueled a wave of class action litigation that shows no sign of slowing. In 2024 alone, over 200 BIPA lawsuits were filed in Illinois courts.

The fix: If you use any biometric timekeeping or access systems, you need a written BIPA policy in your handbook, a standalone consent form signed before the first scan, and a data retention schedule. Don't wait for a demand letter. The cost of compliance is a fraction of even the smallest BIPA settlement.

Sources: 740 ILCS 14 (Biometric Information Privacy Act); Cothron v. White Castle System, Inc., 2023 IL 128004; Rogers v. BNSF Railway Co. (N.D. Ill. 2022); In re Facebook Biometric Information Privacy Litigation (N.D. Cal. 2021); Rivera v. Google LLC (N.D. Ill. 2022).

Illinois amended the Equal Pay Act (820 ILCS 112) effective January 1, 2025, requiring employers with 15 or more employees to include the pay scale and benefits in any job posting. This applies to positions performed in Illinois or reporting to an Illinois supervisor, even if the employee works remotely from another state.

The definition of "job posting" is broad: it covers any external or internal listing, third-party recruiter postings, and positions advertised on job boards like Indeed or LinkedIn. Employers must also make the information available to current employees upon request for their own positions and for any promotion opportunities.

Penalties ramp up quickly:

• Civil penalties range from $500 for a first offense to $10,000 for subsequent violations
• The Illinois Department of Labor investigates complaints and can issue compliance orders
• Employees can also pursue private lawsuits for actual damages, compensatory damages, and attorneys' fees under the broader Equal Pay Act provisions

The Equal Pay Act goes further than federal law in several ways. It prohibits pay discrimination based on sex and race (the federal Equal Pay Act only covers sex). It restricts employers from asking about salary history. And it requires employers with 100+ employees to file an equal pay compliance statement and obtain a certificate from the Illinois Department of Labor.

The fix: Audit every active job posting for pay scale and benefits information. Establish internal pay bands before posting positions. Train recruiters and hiring managers on the new requirements. If you have 100+ employees, get your compliance certificate. Failure to obtain one is itself a violation.

Sources: 820 ILCS 112 (Illinois Equal Pay Act); SB 1480 (2021 amendments); HB 3129 (2024 pay transparency amendments); Illinois Department of Labor Equal Pay compliance guidance.

The Illinois One Day Rest in Seven Act (ODRISA, 820 ILCS 140) has been on the books since 1909, but amendments effective January 1, 2023, gave it serious enforcement power. Every employer must provide employees with at least 24 consecutive hours of rest in every calendar week. That's not a 7-day rolling period. It resets every Sunday-through-Saturday week.

The 2023 amendments also expanded meal and rest break requirements: employees working 7.5 continuous hours must receive a 20-minute meal break within the first 5 hours. For every additional 4.5 continuous hours, another 20-minute break is required.

Penalties increased dramatically:

• Fines range from $250 to $500 per offense (up from $25-$100)
• Each day of violation is a separate offense
• The Illinois Department of Labor can also issue compliance orders and pursue injunctive relief

Employers can apply for a permit from the IDOL allowing employees to voluntarily work on their scheduled day of rest, but the permit process requires evidence that the exception is genuinely voluntary and operationally necessary. Many employers don't realize the permit requirement exists.

Industries most at risk: healthcare, hospitality, manufacturing, and retail, anywhere shift scheduling routinely pushes through 7-day stretches. The amended law also specifically addresses hotel room attendants, who must receive two 15-minute paid rest breaks per shift and cannot be assigned more than a set number of rooms per day.

The fix: Audit scheduling practices to ensure every employee gets a 24-hour rest period in each calendar week. If 7-day stretches are operationally necessary, apply for an ODRISA permit immediately. Update time tracking to flag potential violations before they happen.

Sources: 820 ILCS 140 (One Day Rest in Seven Act); HB 2862 (2023 amendments); Illinois Department of Labor ODRISA FAQ and permit application guidance.

Under the Illinois Human Rights Act (775 ILCS 5/2-109), every Illinois employer, regardless of size, must provide annual sexual harassment prevention training to all employees. Not biennial like some states. Not just for supervisors. Every employee, every year.

The training must cover: the definition of sexual harassment under state and federal law, examples of conduct that constitutes unlawful sexual harassment, a summary of relevant federal and state statutory provisions, and the employer's internal complaint process and legal remedies available.

Restaurants and bars face additional requirements under SB 75 (effective July 1, 2020). They must provide:

• Supplemental sexual harassment training specific to the hospitality industry
• Bystander intervention training for all employees
• Managers must receive additional training on how to handle complaints and recognize warning signs
• A written sexual harassment policy in both English and Spanish (and any other language spoken by at least 5% of the workforce)

Penalties for non-compliance with the annual training requirement can reach $5,000 per offense per employee under the Illinois Human Rights Act. For restaurants and bars, the Illinois Department of Human Rights can seek additional penalties and even license implications.

Common gaps: not training new hires within the first calendar year, losing track of annual recurrence for existing employees, and using a generic national program that doesn't address Illinois-specific provisions (like the state's expanded definition of protected categories).

The fix: Implement annual training with automated tracking. Use Illinois-specific content, not a generic federal program. If you operate restaurants or bars, add the supplemental hospitality module and bystander training. Keep completion records for at least 5 years.

Sources: 775 ILCS 5/2-109 (Illinois Human Rights Act, training requirements); SB 75 (restaurant/bar supplemental training, effective July 1, 2020); Illinois Department of Human Rights model sexual harassment prevention training program.