Adapting to Employment Law Changes in 2025: A Guide for Employers and Job Seekers

As 2025 begins, Illinois is implementing several key employment law changes that affect both employers and job seekers. Staying informed is critical—not only to remain compliant but also to leverage these changes for a competitive advantage in the workplace. This guide outlines the most significant updates and provides practical advice to navigate the evolving legal landscape.

Key Employment Law Changes Effective January 1, 2025

Wage Transparency and Pay Equity

Illinois now requires employers with fifteen or more employees to disclose pay scales and a general description of benefits in job postings. This mandate applies to postings for new hires, promotions, and internal transfers. Employers must also maintain records of job postings with pay and benefit information for at least five years.

Employers should audit compensation structures, standardize pay ranges, and ensure postings comply with the new requirements. Job seekers can use disclosed pay scales to benchmark salary expectations and negotiate effectively.

Expanded Protections Under the Illinois Human Rights Act

Illinois has expanded the Illinois Human Rights Act to include several new protections:

• Employers may not discriminate based on an individual's reproductive health decisions, including choices related to contraception, fertility treatments, and pregnancy-related healthcare.
• Employers are prohibited from harassment based on family responsibilities, such as providing care to children, spouses, parents, or other specified relatives.
• Employers cannot use artificial intelligence in hiring or employment decisions in a way that discriminates against protected groups. Employers must also notify individuals when AI is used in employment-related decisions.

Employers must update anti-discrimination policies, implement staff training, and ensure AI tools used in hiring are compliant with these new rules. Job seekers should be aware of these protections and assert their rights when necessary.

Remote Work Expense Reimbursement

Employers must reimburse remote employees for necessary work-related expenses, such as internet costs and equipment. Employers should create clear reimbursement policies that define eligible expenses and submission processes. Job seekers should inquire about reimbursement policies during the interview process to understand the level of employer support for remote work.

Non-Compete and Non-Solicitation Agreements

Restrictions on non-compete and non-solicitation agreements in Illinois have tightened further, particularly for employees earning below certain income thresholds. Employers must evaluate existing agreements and limit non-competes to roles involving legitimate business interests. Job seekers should carefully review any agreements and consult legal counsel if terms appear overly restrictive.

Extended Deadline for Filing Civil Rights Violations

The time to file charges of civil rights violations with the Illinois Department of Human Rights has been extended from three hundred calendar days to two years. Employers should maintain thorough records of employment practices to prepare for potential claims. Job seekers and employees now have more time to report violations, providing greater flexibility in pursuing justice.

Steps for Employers

• Audit and update employee handbooks, job postings, and policies to align with 2025 requirements.
• Conduct training programs for managers and HR teams to ensure compliance with new laws.
• Consult legal counsel to address complex compliance issues and implement best practices.
• Develop transparent systems for handling reimbursement claims and accommodation requests.

Strategies for Job Seekers

• Stay informed about changes in employment laws to understand your rights.
• Leverage wage transparency to benchmark salary expectations and negotiate effectively.
• Be proactive in asking potential employers about reimbursement policies and workplace accommodation.
• Understand the protections related to AI usage and reproductive health decisions to identify and challenge unfair practices.

Looking Ahead

The employment law changes in 2025 reflect Illinois’ commitment to fairness, transparency, and equity in the workplace. Employers who adapt proactively will build compliant, inclusive, and engaged workplaces. Job seekers who understand their rights can navigate the job market with confidence and negotiate from a position of strength.