Amendments to the Illinois Workplace Transparency Act taking effect in 2026 significantly expand employee protections, restrict commonly used employment agreement provisions, and increase potential liability for noncompliant employers. Illinois employers should proactively review their contracts, policies, and separation practices to mitigate risk.
Expanded Limits on Confidentiality and Non-Disparagement Provisions
The 2026 amendments further restrict the use of confidentiality, non-disparagement, and similar provisions in employment, separation, and settlement agreements. Covered agreements may not prohibit or interfere with an employee’s ability to report or discuss alleged unlawful employment practices, including discrimination, harassment, retaliation, wage and hour violations, workplace safety concerns, or other conduct protected by law. Provisions that attempt to limit an employee’s right to cooperate with government agencies or participate in investigations or legal proceedings are unenforceable.
New Restrictions on Forum, Venue, and Choice-of-Law Provisions
The amendments also place additional constraints on dispute-resolution terms. Employers may not require employees to litigate claims outside of Illinois or under the laws of another state when the claims arise from work performed in Illinois. Contractual provisions that restrict access to courts or administrative agencies may be deemed void if they conflict with the IWTA’s transparency and public-policy objectives.
Express Protection for Concerted Activity
The IWTA now expressly protects employees who engage in “concerted activities,” including discussions about wages, benefits, workplace conditions, or potential legal claims with coworkers or third parties. Employers are prohibited from retaliating against employees for engaging in such protected conduct, even where the activity involves the use of employer-issued devices or systems, provided the conduct is otherwise lawful.
Expanded Damages for IWTA Violations
The amendments also materially expand the remedies available under the IWTA. Employees, prospective employees, and former employees who successfully challenge an agreement that violates the Act, or who successfully defend against an employer’s claim for breach of a confidentiality or non-disparagement provision, may recover consequential damages, in addition to reasonable attorneys’ fees and costs.
These changes apply broadly and may affect offer letters, employment agreements, handbooks, separation agreements, and settlement templates currently in use. Employers that fail to update their documents and practices risk both unenforceability of key provisions and heightened monetary exposure.
If you have questions about the 2026 IWTA amendments, would like assistance reviewing or revising employment agreements, or need guidance responding to employee complaints, please contact our office at info@tristancervantes.com or 312-345-9200.
