Effective January 1, 2026, the amended Workplace Transparency Act (WTA) expanded employee protections and imposed additional limits on certain employer agreements. It applies to agreements between Illinois employers and their employees or service providers (including contractors and consultants) but does not apply to collective bargaining agreements.

The changes include:

• Broader “unlawful employment practices.” Which now encompasses any claim under any “state or federal law governing employment.” This includes wage claims and workplace safety issues, in addition to any claims of discrimination, harassment, or retaliation.
• Protection for concerted activity. Agreements may not restrict protected concerted activity, the definition of which was broadened to include “activities engaged in for the purpose of collective bargaining or other mutual aid or protection.” Provisions limiting such activity are void and unenforceable. Agreements must clearly explain workers’ rights to engage in protected concerted activity.
• Limits on unilateral employer clauses. Employers are prohibited from including unilateral provisions that:

1. 1. Require an employee to waive, arbitrate, or otherwise diminish any existing or future claim, right or benefit related to an unlawful employment practice;
   2. Force employees to use another state’s law for their claims;
   3. Require employees to go to court outside of Illinois for workplace claims; or
   4. Shorten the legal time an employee has to make a claim.

These conditions may be allowed if mutual, in writing, and supported by actual knowing and bargained for consideration, and the agreement acknowledges employees’ rights to report unlawful or criminal conduct.

• Limits on confidentiality in settlement and separation agreements. If an employer seeks confidentiality in a settlement or separation agreement, it must provide separate consideration beyond what is already exchanged for the release of claims. Employers may not state unilaterally that confidentiality is the employee’s preference and may not restrict employees from engaging in future or anticipated concerted activity.
• Expanded remedies. More damages are available to employees beyond attorneys’ fees, including consequential damages and fees, costs, and damages associated with defending an action for breach of a confidentiality agreement. This also applies to successful challenges of the validity or enforceability of employment agreements.
• Participation in proceedings. Employees are permitted to testify in administrative, legislative, judicial and arbitration proceedings related to alleged criminal conduct and unlawful employment practices. They can participate in depositions pursuant to a court order, subpoena or other written request from an administrative agency or the legislature. Agreements must expressly acknowledge these rights.

Employers should review and update templates for offer letters, employment agreements, NDAs, separation or settlement agreements, arbitration agreements, and policy acknowledgments to ensure (a) mutuality, (b) clear disclosure of employee rights, and (c) compliance with requirements regarding venue, choice‑of‑law, and deadlines for bringing claims.

As employment attorneys serving Champaign and communities across Illinois, Thomas Mamer LLP helps clients understand what these changes mean for their businesses, careers, and legal protections.