2024 Illinois Legislative Update

At A Glance

• Effective January 1, 2025:
  • Wage Statement Amendments 
  • Personnel Records Review Act Amendments
• Effective January 1, 2026: Human Rights Act Amendments 
• Effective January 1, 2025: Right to Privacy in the Workplace Act Amendments

Illinois Legislative Updates for 2025 and Beyond

Illinois ended its 2024 legislative session with the passing of several employment-related bills. Below are summaries of what employers should prepare for in 2025 and beyond.

Wage Statement Amendment

Beginning January 1, 2025, SB 3208 amends the Illinois Wage Payment and Collection Act. As a part of the amendments, employers must maintain copies of the employee pay stubs for at least three years after the payment date. 

Additionally, the bill adds the definition of “pay stub” and its requirements to the Illinois statutes, as previously this information was only included in the Illinois General Administrative Code. The wage statement or pay stub must include:

• Hours worked
• Rate of pay
• Overtime pay and overtime hours worked
• Gross wages earned
• Wage deductions 
• Year-to-date wages and deductions
• (New) The unused balance of any benefit or paid time off available to the employee
  • For this new requirement, employers may provide the information in a statement separate from any other required information.

Employers must provide a copy of pay stubs to active or terminated employees upon request within 21 calendar days. They are not, however, required to provide copies more than twice in a 12-month period.

Personnel Records Review Act Amendments

The Illinois state legislature amended the Personnel Records Review Act with new requirements on employers navigating personnel record requests. Effective January 1, 2025, HB 3763 requires that each request:

• be made at reasonable intervals, unless otherwise provided in a collective bargaining agreement; 
• be made to a person responsible for maintaining the employer’s personnel records, including the employer’s human resources department, payroll department, the employee’s supervisor or department manager, or to an individual as provided in the employer’s written policy; 
• identify what personnel records the employee is requesting or if the employee is requesting all of the records allowed to be requested under the Act; 
• specify if the employee is requesting to inspect, copy, or receive copies of the records;
• specify whether records be provided in hard copy or in a reasonable and commercially available electronic format;  
• specify whether inspection, copying, or receipt of copies will be performed by that employee’s representative, including family members, lawyers, union stewards, other union officials, or translators; and 
• if the records being requested include medical information and medical records, include a signed waiver to release medical information and medical records to that employee’s specific representative. 

All requests must be made in writing, which includes electronic communication such as email or text messages.

Human Rights Act Amendments

Effective January 1, 2026, HB 3773 amends the Human Rights Act to address employers’ use of artificial intelligence (AI). The amendments state it would be a civil rights violation to use AI in a discriminatory manner on the basis of protected class under Illinois law. One key callout is employers cannot use an employee's address as a basis of discrimination.

Employers will also be required to provide notice to employees and applicants when using AI for the following purposes:

• recruitment 
• hiring
• promotion 
• renewal of employment 
• selection for training or apprenticeship 
• discharge
• discipline
• tenure, OR 
• the terms, privileges, or conditions of employment

Right to Privacy in the Workplace Act Amendments

The Illinois Right to Privacy in the Workplace Act was amended to prevent employers from imposing work authorization verification requirements that are greater than those required by federal law.

Effective January 1, 2025, SB 0508 requires that if an employer asserts that a discrepancy exists in an employee’s employment verification information, the employer is obligated to provide the employee with certain notices. These notices include the following requirements:

• Providing the employee with the specific document(s) the employer deems to be deficient, the reason for deficiency, and upon request by the employee, the employer must give the employee the original document forming the basis for the deficiency within seven business days, and would require employers to give employees time to correct documentation discrepancies;
• Instructions on how the employee may correct the alleged deficiencies, if required to do so by law;
• An explanation of the employee's right to have representation present during related meetings, discussions, or proceedings with the employer, if allowed by a memorandum of understanding concerning the federal E-Verify system; and
• An explanation of any other rights the employee may have in connection with the alleged discrepancies.

The amended act also gives employees additional rights and protections when an employer receives notification from any federal or state agency of a discrepancy in relation to work authorization.

Finally, SB 0508 also includes new provisions that require employers to provide notice to each current employee, by posting in English and in any language commonly used in the workplace, of any inspections of I-9 Employment Eligibility Verification forms or other employment records conducted by the inspecting entity within 72 hours after receiving notice of the inspection.

Next Steps

Employers should review their current policies and practices to ensure compliance before any applicable effective dates.

Thank you for choosing Paylocity as your payroll tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.