Illinois continues to lead the nation in employee-friendly legislation, and 2026 brings several changes that require immediate attention from employers. Chicago employment lawyers at Cramer Law Group explain what you need to update.
NICU Leave Law (Effective June 2026)
Employers with 50 or more employees must provide up to 12 weeks of unpaid, job-protected leave for employees with infants in neonatal intensive care.
Critical point: This leave is in addition to—not concurrent with—FMLA leave. An employee could theoretically take 12 weeks of FMLA for birth and bonding, then 12 weeks of NICU leave, totaling 24 weeks of protected absence.
Your leave policies need updating now to address this interaction.
Paid Leave for All Workers Act Enforcement
The law took effect in 2024, but enforcement has ramped up significantly in 2026. Key requirements: – Employees earn one hour of paid leave for every 40 hours worked – Leave is usable for any reason—no documentation or justification required – You cannot ask why an employee is taking leave
If you haven’t audited your accrual tracking and leave policies, do it now. Violations are generating enforcement actions.
Non-Compete Threshold Increases
Under Illinois non-compete law, the income threshold for enforceable non-competes rises to $80,000 in 2027 (currently $75,000). Review your existing agreements now to identify which employees may fall below the threshold when the change takes effect.
Consider whether non-solicitation agreements (with the lower $45,000 threshold) better serve your needs.
Freelance Worker Protection Act Enforcement
Effective July 2024 but seeing increased enforcement in 2026: – Written contracts required for freelance services over $500 – Payment due within 30 days of completion unless otherwise agreed – Retaliation protections now in effect
BIPA Litigation Continues Surging
Biometric Information Privacy Act class actions show no signs of slowing. If you use fingerprint scanners, facial recognition, or similar technology: – Ensure written consent forms are compliant – Verify data retention policies meet requirements – Review vendor contracts for BIPA provisions
Each scan can constitute a separate violation at $1,000-$5,000 per incident.
Action Items for Q1 2026
- Review and update employee handbooks
- Audit leave tracking systems for Paid Leave compliance
- Train managers on NICU leave and Paid Leave requirements
- Review all restrictive covenant agreements against current thresholds
- Audit biometric data practices for BIPA compliance
Frequently Asked Questions
Q. Should my company consult a Chicago employment lawyer about 2026 changes?
Yes. A Chicago employment lawyer can audit your policies, identify compliance gaps, and prioritize updates before enforcement actions begin.
Q: What’s the biggest liability exposure for 2026?
BIPA violations, with their per-scan damages, represent the largest potential exposure for many employers.
Need help prioritizing these changes? Call Cramer Law Group, Chicago employment lawyers: 312-924-0219.
