Expansion of the Illinois Workplace Transparency Act

The Illinois Workplace Transparency Act (WTA) was not exempt from the many laws the Illinois Legislature amended this August 2025. With changes set to take effect on January 1, 2026, employers must heed the new requirements of the WTA which will impact future employment, settlement and severance agreements. Here are five notable changes to the WTA employers should recognize :

1. The WTA protects employees’ ability to make truthful disclosures about unlawful employment practices. The definition of “unlawful employment practices” was expanded to include disclosures of unlawful practices enforced under the Illinois Department of Labor, Illinois Labor Relations Board, U.S. Department of Labor, Occupational Safety and Health Administration or the National Labor Relations Board.

• The WTA explicitly prohibits any contract or agreement that is a condition of employment or continued employment from restricting an employee’s engagement in concerted activity to address work related issues. Any unilateral agreement which prevents concerted activity is automatically void.

• The WTA prohibits any contract or agreement that is a condition of employment or continued employment from diminishing an employee’s right to make any claim by shortening the applicable statute of limitations, applying non-Illinois law to an employee’s claim or requiring a venue outside of Illinois to adjudicate an Illinois employee’s claim. Any unilateral agreement that contains these requirements is void.

• All settlement or termination agreements which contain a confidentiality clause must contain consideration separate of any consideration offered in exchange for a general release.

• In addition to costs and attorneys’ fees for violation of the WTA, employers now also have exposure for consequential damages.

Prior to the new year, employers should review any standard agreements or contracts to ensure they are in compliance with the new requirements under the Workplace Transparency Act.

Client alert authored by Markeya A. Fowler, (312 849 4126), associate.

This Chuhak & Tecson, P.C. communication is intended only to provide information regarding developments in the law and information of general interest. It is not intended to constitute advice regarding legal problems and should not be relied upon as such