As we ring in the new year, it is important for employers to be aware of how the workplace continues to evolve. Staying ahead of employment law requirements is critical to maintaining a healthy, compliant, and productive business. Our 2026 Employment Law Guide & Checklist is designed to help organizations, HR professionals, and executive teams proactively assess their policies and practices to implement preventive measures.
Whether you are in the start-up phase or a well-established organization, employment laws and best practices are continuously evolving and require you to adapt. From wage and hour compliance to workplace accommodations, evolving DEI concerns, and new regulatory updates, organizations need to stay up to date. This guide provides a practical framework to ensure your business is legally sound and positioned to foster a positive and resilient work environment in the year ahead. Saman Haque, H3LP’s resident employment law attorney is at your disposal and can be reached at saman@h3lp.law.
☑ Unique Illinois Updates
☐ Illinois Workplace Transparency Act (WTA) Revisions. In the last several years, Illinois has made efforts to strengthen statutory rights with respect to employment and separation agreements. Effective January 1, 2026, the WTA will impact how employers implement confidentiality terms in employment agreements. Employers will be required to provide separate and distinct consideration for confidentiality terms. Existing agreements may need to be revised to avoid allegations of violations of the new provisions in the WTA. Additionally, the WTA has expanded acknowledgement requirements for participation in unlawful employment practices and added in the protection of “concerted activities” as defined by labor laws. Employers should be aware of what provisions they include in these agreements and ensure they comply with requirements to enforce these provisions.
☐ Illinois Human Rights Act (IHRA) Expansions. Legislators continue to expand IHRA protections for employees. In 2025, the IHRA expanded their definition of protected categories to include “reproductive health decisions” and “family responsibilities.” If employers have not already updated their policies and procedures to reflect the updates from 2025, they should promptly do so. As of January 1, 2026, the IHRA has discretion to hold fact-finding conferences and can issue civil penalties against employers. Employers should be aware of deadlines to participate in these conferences, the investigation process, as well as the potential penalties.
☐ Use of Artificial Intelligence in the Workplace. The IHRA also has new additions that should caution employers in the use of artificial intelligence (AI) tools in the hiring process. Effective January 1, 2026, the IHRA prohibits employment discrimination that utilizes artificial intelligence to consider factors like race or ZIP codes. Employers should consider updating their AI policies for their industry specific concerns (including companies that manage sensitive personally identifiable information, personal health information, and other confidential client information). Other states, like California, will lead the charge in rolling out comprehensive safety and transparency for reporting requirements for AI systems.
☐ Illinois Victims of Economic Securities Act (VESSA) Updates. Employers may overlook implementing Illinois VESSA leave policies in their employee handbooks, often not having any written policies in place. Employers that do not have a policy (written or general practice) should implement one and be mindful that effective January 1, 2026, employees are expressly granted the right to use employer-issued equipment to record any crime of violence taken against them or a family member without reprisal.
☑ Leave Law Updates
☐ Nursing Mothers in the Workplace Act Update (IL). Effective January 1, 2026, the Act will now require eligible employers (five or more employees) to compensate nursing mothers for reasonable time taken to express milk. The previous version of the Act did not require compensation for this time. Illinois employers should ensure their timekeeping practices are updated to not inadvertently violate the amendments to this Act.
☐ Neonatal Intensive Care Leave Act (NICLA) (IL). Effective June 1, 2026, eligible employers (16 or more employees) will be required to provide NICLA leave to employees with a child admitted to the NICO. Employees are entitled to anywhere from 10-20 days of leave which may be provided consecutively or intermittently and in increments depending on employer policies. NICLA Leave may overlap and impact other leaves of absences due to FMLA, accommodation requests. It is increasingly important for employers to manage NICLA and other leaves in compliance with the Health Insurance Portability and Accountability Act (HIPAA). The Illinois Department of Labor is set to provide further guidance on this law and H3LP will be sure to track and provide another employment law update.
☐ Paid Leave for Any Reason and the Chicago Paid Sick and Safe Leave Laws. While these laws have been effective since 2024, we recognize that many employers are not updating their policies and procedures on a yearly basis. If employers have not updated their policies ensuring compliance with these laws, now is the time as we start to see agencies roll out enforcement and penalties for non-compliance.
☑ Other State Leave Laws
☐ New York City Earned Safe & Sick Time Act (NY). New York City has amended their earned sick and safe time act effective February 2026, to include an additional 32 hours of unpaid safe or sick time and has expanded the eligible reason for use of the time away from work. The law also codified NY state regulation requiring 20 hours of paid prenatal care leave. New York was one of the first states to designate a distinct prenatal care leave law, which may influence other states to designate similar time off.
☐ Michigan’s Earned Sick Time Act (ESTA). Effective October 2025, and enforcement likely to take place in 2026 and 2027, the Michigan sick leave law expanded to businesses with 10 or fewer workers, who are also now expected to provide paid sick time. A reminder that many laws like the MI ESTA consider nationwide headcount when classifying a business as “small” or “large”. If you are an employer that operates across the Midwest and has remote hires, it is important to ensure compliance with laws like this.
☑ Legal Landscape of the Workplace – Federal Laws to Keep an Eye On
☐ Equal Employment Opportunity (EEOC) Stance on DEI: With the change of guard of the federal government also comes a change in administrative agencies and their administration of workplace laws. The EEOC is tasked with investigating and enforcing workplace laws. The EEOC Acting Chair issued a Statement on the “evenhanded application of Title VII” and commented that there is no place for “majority-group” plaintiffs as supported by recent Supreme Court Decision Ames v. Ohio Department of Youth Services. For employers, this means ensuring all policies, procedures, and practices have a neutral approach.
☐ Fair Labor Standards Act (FLSA) – Salary and Minimum Wage Laws: It is important for employers to understand their obligations when it comes to exemption status and any changes to minimum wage requirements. The federal minimum wage in 2026 will remain the same as 2025 ($684 per week in 2026), however the U.S. Department of Labor has indicated that it intends to review the rule for possible changes to any minimum requirements. It is important to be aware of state laws and city specific ordinances that are also at play. Illinois, Chicago, and Cook County all have their own respective minimum wage laws in effect that have changed in the last few years.