New Employment Laws in 2026

The following were signed into law in 2026 by the governor.

Illinois Human Rights Act 

Changes were made to the Illinois Human Rights Act (“IHRA”) and signed into law in 2026

FACT-FINDING CONFERENCES NO LONGER MANDATORY

 Prior to this new law, it was mandatory for the Illinois Department of Human Rights (“IDHR“) to hold fact-finding conferences.  These conferences are no longer automatically scheduled. Under the new law, the IDHR will hold fact-finding conferences only when it believes they necessary or when the parties file a joint request in writing within 90 days of a charge being filed. There is catch, the parties must agree to allow the IDHR an additional 120 days to complete its investigation.

ZIP CODES USED IN EMPLOYMENT DECISIONS

Employment decision based on zip codes as a proxy for any protected class is now prohibited. Previously employers could use zip codes to exclude a protected class through a filter in recruitment software. As of 2026, using zip codes in this way, or in any discriminatory manner in employment, will be actionable under the Illinois Human Rights Act.  

NEW CIVIL PENALTIES

Penalties may be imposed on employers “to vindicate the public interest.” Penalties can rise to $16,000 per act per aggrieved party for a first violation, up to $42,500 for a second violation within five years and, if two or more violations within seven years, penalties up to $70,000 may be assessed. The Illinois Human Rights Commission (“IHRC“), has the authority to impose these penalties. In addition, the State of Illinois will receive the money not the individual who files the complaint.  

Use of Artificial Intelligence (“AI”) Must Be Disclosed

AI decisions must be disclosed to employees and job seekers by the company hiring them or a third party who is making the hiring decision for the employer. Employers and third parties acting on behalf of employers are prohibited from using AI in employment decisions if such use results in discrimination against a protected class under the IHRA. This prohibition covers the entire employment process, from recruitment-promotion-discipline-termination. Under the IHRA intention does not matter if discrimination occurs because of an employer’s use of AI. 

Call the law offices of Peter LaSorsa at 312-505-5038 to discuss these new 2026 laws or if you believe you have been affected by them.

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