New Illinois Retaliation Claim Exposure - What Employers Need to Know in 2026

Retaliation claims — where a worker alleges negative action after asserting a legal right — have been getting increased attention in Illinois. That trend is driven in part by state and federal enforcement activity from agencies like OSHA (the Occupational Safety and Health Administration) and the IDOL (Illinois Department of Labor), but also by recent statutory changes that broaden worker protections.

As retaliation claims grow, employers benefit from understanding what’s happening and how it affects workplaces across the state.

Enforcement Activity Encourages Reporting

The core idea behind retaliation protections is simple: employees shouldn’t be punished for asserting legal rights. OSHA has long enforced federal anti-retaliation provisions tied to safety, discrimination, wage, and whistleblower protections — and continues to do so nationally. At the state level, employees who feel they’ve faced retaliation can file complaints with the IDOL. While IDOL handles a range of wage and workplace rights claims, its role in investigating retaliatory actions — particularly those tied to newly expanded protections — is becoming more visible.

New Anti-Retaliation Laws Expand Protections

Illinois has recently strengthened anti-retaliation language in several workplace laws:

  • One Day Rest in Seven Act (SB 3180, 2025): The ODRSA mandates that employers in Illinois provide employees with at least 24 consecutive hours of rest within every seven-day period. Under an amendment enacted into law in March 2025, the act now expressly prohibits retaliation against employees who exercise their rights to meal and rest breaks or who report violations. Violations can result in penalties and relief for the worker through IDOL enforcement — even though private lawsuits aren’t available under this law.

  • Family Neonatal Intensive Care Leave Act (NICLA, 2026): The NICLA, signed into law effective January 1, 2026, requires employers of between 16 and 50 workers to provide up to 10 days of unpaid leave to employees who have a child in the NICU. Larger employers must provide up to 20 days. The law applies to both part- and full-time workers. It covers a broader swath of workers than the federal Family and Medical Leave Act, although workers eligible for FMLA must exhaust that leave first before utilizing NICU leave. NICLA also prohibits employers from taking adverse actions against an employee for exercising rights under the law. Employees who believe their rights have been violated under the Act have 60 days from the last event constituting the alleged violation to file a claim with the IDOL or a lawsuit in court. The Act provides potential penalties up to $5,000 per affected employee.

These developments send a strong message: retaliation protections in Illinois are not static — they’re expanding.

Key Takeaways for Employers

  • Review and update policies to reflect expanded retaliation proscriptions.

  • Train managers so that disciplinary actions aren’t perceived as retaliatory.

  • Take employee complaints seriously and document responses carefully.

Retaliation claims in Illinois are rising because the law and enforcement structures have evolved to give workers clearer protections and more ways to assert them. That means employers must be proactive in compliance and communication — and understanding this enforcement landscape is critical for every workplace in Illinois.

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