Happy Holidays & Upcoming Center Closure | | Countdown to Compliance: Illinois Employers should Prepare for New Laws Becoming Effective in 2026 | | |
As the new year approaches, Illinois will ring in 2026 with a new wave of legislative changes impacting employment practices. Among the most notable are expansions to employee leave entitlements and new limitations on certain employment agreements under the Illinois Workplace Transparency Act. By understanding these developments early and implementing proactive policy updates, employers can position themselves for a smooth transition into the new year. The following highlights the key provisions employers should know and offers practical steps for maintaining compliance in the year ahead.
Extending Existing Employment Laws
Many of the changes Illinois employers will see in 2026 come through amendments to familiar Illinois employment statutes. With the exception of the Military Leave Act, the following amendments are set to take effect on January 1, 2026.
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Illinois Workplace Transparency Act (IWTA): Recent amendments to the IWTA significantly broaden the scope of the statute and impose new restrictions on employment-related agreements. The IWTA focuses primarily on prohibiting confidentiality and arbitration provisions that limit disclosure of “unlawful employment practices”—which the Act previously defined as discrimination, harassment, or retaliation claims. The latest changes to the IWTA now extend the definition of “unlawful employment practices” to cover any practice made unlawful under the Illinois Human Rights Act or Title VII of the Civil Rights Act of 1964, or any other State of federal rule or law governing employment, including those that are enforced by the Illinois Department of Human Rights, Illinois Department of Labor, Illinois Labor Relations Board, Equal Employment Opportunity Commission, United States Department of Labor, Occupational Safety and Health Administration, and the National Labor Relations Board. This expanded definition now encompasses a wider range of potential claims that may be covered by the Act’s restrictions. The amendments also strengthen employee rights regarding confidentiality and nondisclosure provisions. Employers may no longer require employees, applicants, or former employees to sign agreements that restrict their ability to report or discuss alleged unlawful employment practices or to engage in concerted activity to address work-related issues. In addition, unilateral employment agreements that purport to shorten the applicable statute of limitations, apply non-Illinois law to an Illinois employee’s claim, or require venue outside of Illinois to adjudicate an Illinois employee’s claim are now against public policy and void to the extent the provision denies an employee a substantive or procedural right or remedy.
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Victims' Economic Security and Safety Act (VESSA): A new provision was added to VESSA, increasing employer obligations, as well as potential liability. As employers are likely already aware, VESSA was enacted to allow victims of violence to take up to two weeks of job-protected leave from work. This new provision expands protections for victims as it now also prohibits employers from discriminating or retaliating against employees who use employer-issued electronic devices to record or communicate about domestic violence, sexual violence, gender violence, or other violent crimes against the employees or their family or household members. Additionally, employers must grant employees access to information on those devices related to those crimes and must post a notice explaining employees' rights under the law. A copy of the required notice can be found here Required Posters & Disclosures - Employers.
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Employee Blood and Organ Donation Leave Act: Part-time employees will now also qualify for 10 days of paid organ donation leave, which was previously only offered to full-time employees. Daily pay should be calculated based on the daily average pay the employee received during the last two months of employment.
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Nursing Mothers in the Workplace Act: This amendment requires employers to provide compensated lactation breaks at the employee's regular rate of compensation. Employers may not require an employee to use paid leave for such purposes or reduce compensation for these breaks.
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Illinois One Day Rest in Seven Act: This amendment added further protections for employees that raise complaints regarding violations of this Act. The amendment prohibits retaliation, adverse actions, or discrimination against employees for: (1) exercising a right under that Act; (2) making a complaint to their employer or the governing agency; (3) causing to be instituted any proceeding under or related to that Act; or (4) testifying in an investigation or proceeding under the Act.
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Illinois Human Rights Act: Illinois employers will have new obligations related to their use of artificial intelligence in employment-related decisions. Employers must notify employees of their use of AI if being utilized with respect to employment decisions. Employers will also need to ensure that their use of AI does not: (1) have the effect of discriminating on the basis of protected classes and (2) use zip codes as a proxy for protected classes.
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Military Leave Act (formerly known as the Family Military Leave Act): A new amendment expanded entitled leave to also include up to eight hours of leave per calendar month to participate in funeral honors, up to a total of 40 hours in a calendar year, for qualifying individuals. This law went into effect August 1, 2025.
New Leave Obligation for Illinois Employers
Brand new to the legal landscape in Illinois is the Neonatal Intensive Care Leave Act. Employers will be required to provide unpaid leave to all employees who have a child that is a patient in a neonatal intensive care unit. The amount of leave will depend on the size of the employer. Employers with a minimum of sixteen employees will be required to provide ten days of leave, while employers with more than fifty employees will be required to provide twenty days of leave. Noteworthy for employers is that leave granted under this Act is in addition to any leave an employee may otherwise be entitled to under the federal Family and Medical Leave Act. This law goes into effect June 1, 2026.
| | Finance & Accounting Tip of the Month - December 2025 | | |
Prepare for 2026 with a budget that reflects reality
As the year wraps up, build your 2026 budget using real numbers—not guesses. Review this year’s income, expenses, and seasonal trends to project more accurately. A realistic budget helps you set attainable goals, anticipate cash needs, and measure performance month to month. It’s your roadmap for financial confidence in the new year.
👉 Get Additional No-Cost Guidance from the Illinois SBDC: www.sauksbdc.com
| | Marketing Tip of the Month - December 2025 | | |
Start the new year with a strong online presence
Your website and social media pages are often your first impression—make sure they’re up to date. Refresh your homepage, update business hours, and post something new before January hits. Consistent online activity signals credibility to both customers and search engines. Small updates now can bring in big visibility later.
👉 Get Additional No-Cost Guidance from the Illinois SBDC: www.sauksbdc.com
| | Illinois Small Business Regulatory Alerts | | The Illinois Business Information Center is a statewide resource that provides Regulatory Alerts, License and Permit Assistance, Resource Referrals, and Small Business Environmental Assistance. Below contains some links to recent proposed and adopted State regulatory rules that may impact small businesses. | | Community Spotlight: JJM Printing | | Dixon Chamber of Commerce - Upcoming Events | | Sauk Valley Area Chamber of Commerce - Upcoming Events | | Rock Falls Chamber of Commerce - Upcoming Events | | On-Demand Grant Ready Webinar | | |
🚨 Grant seekers, this one’s for you! 🚨
Our Grant Ready workshop that was held in July was amazing! It was packed with practical advice to help entrepreneurs get funding-ready and actually land the grants they’re chasing. Now, this workshop is available on-demand as a webinar, free to be accessed at anytime, anywhere!
💼 From breaking down the grant prequalification process to real perspectives from local seasoned grant writers, this on-demand session delivers excellent advice. You’ll learn what it really takes to prequalify for grants, how to tap into the right resources, and get real, unfiltered answers from professionals who live and breathe grant writing.
Access the on-demand webinar by clicking the button below.
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Disclaimer: This catalog of training event(s) is supported by federal taxpayer funds. By registering, I certify that I am legally authorized to receive services funded by U.S. taxpayer dollars, in accordance with applicable federal law and regulations.
ADA: In accordance with the American Disabilities Act and state law, you may request accommodations due to a disability by contacting us directly. Advance notice may be necessary for some accommodations. Any client or training registration(s) must be completed prior to accommodation requests.
| | On-Demand Starting a Business in Illinois Webinar | | |
Join us for an enlightening webinar on Starting a Business in Illinois, presented by Justin Bergman at the Illinois SBDC at Sauk Valley Community College. This on-demand webinar is designed to provide aspiring entrepreneurs with the knowledge and tools necessary to successfully launch their own businesses.
Training Outline
· Business Feasibility: Understand your “Why?” and evaluate the viability of your business idea.
· Business Planning: Learn how to create a robust business plan that can guide your business towards success.
· Business Structures: Explore different business structures and determine which one is the most suitable for your business.
· Setting Up a Business: Get step-by-step guidance on how to set up your business, from choosing a name to registering your business.
· Licenses and Permits: Navigate the complexities of obtaining the necessary licenses and permits for your business.
· Employees: Learn about hiring practices, labor laws, and how to manage your workforce effectively.
· Taxes and Record Keeping: Gain insights into tax obligations, financial management, and record keeping to ensure your business stays compliant.
The new 2024 On-Demand Webinar includes updated information on:
· FinCEN Beneficial Ownership Information
· Illinois Minimum Wage
· Illinois Sexual Harassment Training
· Illinois Secure Choice Program
This on-demand webinar is a must-attend for anyone considering starting a business in Illinois. Don’t miss this opportunity to learn from Justin Bergman and take the first step towards your entrepreneurial journey.
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Disclaimer: This catalog of training event(s) is supported by federal taxpayer funds. By registering, I certify that I am legally authorized to receive services funded by U.S. taxpayer dollars, in accordance with applicable federal law and regulations.
ADA: In accordance with the American Disabilities Act and state law, you may request accommodations due to a disability by contacting us directly. Advance notice may be necessary for some accommodations. Any client or training registration(s) must be completed prior to accommodation requests.
| | On-Demand Introduction to Marketing for Small Businesses Webinar | | |
Presented by the Illinois SBDC at Sauk Valley Community College, this on-demand webinar equips small business owners with essential marketing strategies to drive growth and success. Join Justin Bergman, Center Director, as he shares expert insights on:
- Identifying your target market.
- Developing a compelling brand identity.
- Setting clear, actionable marketing objectives.
- Creating a consistent and effective marketing plan.
The webinar dives into the practical use of both traditional and digital marketing tools, offering actionable tips tailored to small business needs.
Small businesses are encouraged to utilize additional resources available at the Illinois SBDC to develop customized marketing plans that align with their unique industry demands.
Access this valuable learning opportunity today to set your business on a path to growth and resilience!
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Disclaimer: This catalog of training event(s) is supported by federal taxpayer funds. By registering, I certify that I am legally authorized to receive services funded by U.S. taxpayer dollars, in accordance with applicable federal law and regulations.
ADA: In accordance with the American Disabilities Act and state law, you may request accommodations due to a disability by contacting us directly. Advance notice may be necessary for some accommodations. Any client or training registration(s) must be completed prior to accommodation requests.
| | On-Demand Advantage Illinois Loan Program Webinar | | |
Disclaimer: This catalog of training event(s) is supported by federal taxpayer funds. By registering, I certify that I am legally authorized to receive services funded by U.S. taxpayer dollars, in accordance with applicable federal law and regulations.
ADA: In accordance with the American Disabilities Act and state law, you may request accommodations due to a disability by contacting us directly. Advance notice may be necessary for some accommodations. Any client or training registration(s) must be completed prior to accommodation requests.
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Illinois SBDC at Sauk Valley Community College
Past & Upcoming Stakeholder Meetings
| All Stakeholder Meetings hosted by the Illinois SBDC at Sauk Valley Community College are open to the public to attend in accordance with the Open Meetings Act. | |
2025 Quarter 1 Stakeholder Meeting, Thursday, March 6
View Meeting Recording
2025 Quarter 2 Stakeholder Meeting, Thursday, May 1
View Meeting Recording
2025 Quarter 3 Stakeholder Meeting, Thursday, September 11
View Meeting Recording
2025 Quarter 4 Stakeholder Meeting, Thursday, November 6
View Meeting Recording
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Illinois SBDC at Sauk Valley Community College - Center Staff:
Kim Ewoldsen, Executive Director of Donor Relations & Economic Development, 815-600-6267
Justin Bergman, Director of the Illinois SBDC at Sauk Valley Community College, 815-835-6221
Nancy Schaefer, Illinois SBDC Administrative Assistant, 815-835-6248
Pam Clodfelter, Illinois SBDC Advisor, 815-835-6244
Mailing Information:
Sauk Valley Community College
Attention: Illinois Small Business Development Center
173 Illinois Route 2
Dixon, Illinois 61021
Contact Information:
Phone: (815) 835-6244
Email: SBDC@SVCC.edu
Web: www.sauksbdc.com
The Illinois SBDC at Sauk Valley Community College is Funded in part through a Cooperative Agreement with the U.S. SBA, the Illinois Department of Commerce & Economic Opportunity and Sauk Valley Community College. Additional funding provided by the stakeholders of the Illinois SBDC at Sauk Valley Community College.
Illinois SBDC services and trainings are provided in a nondiscriminatory way to all legal residents and citizens in the US.
In accordance with the American Disabilities Act and state law, you may request accommodations due to a disability by contacting us directly. Advance notice may be necessary for some accommodations. Any client or training registration(s) must be completed prior to accommodation requests.
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