Compliance Alerts December 2025

Illinois employers should begin preparing now for several significant employment law changes taking effect in 2026. These updates affect employment and severance agreements, the use of artificial intelligence in employment decisions, paid break requirements for nursing employees, expanded protected leave rights, and eligibility for organ donation leave. Employers with Illinois employees should review policies, practices, and agreement templates for the new year.

Employment and Severance Agreement Requirements

Effective January 1, 2026, amendments to the Illinois Workplace Transparency Act (WTA) expand employee protections and impose new restrictions on employment-related agreements.

These changes apply to employment contracts, offer letters, settlement agreements, separation agreements, and other similar agreements entered into, renewed, or modified on or after January 1, 2026.  Collective bargaining agreements remain unaffected. The amended law significantly expands what constitutes an “unlawful employment practice” and applies to a wide range of state and federal employment laws, not just discrimination or harassment claims.

Agreements can no longer include unilateral terms that restrict employee rights. Clauses that reduce statutes of limitations, apply non-Illinois law to Illinois claims, require dispute resolution outside Illinois, or limit protected concerted activity will be invalid if used as a condition of employment or ongoing employment.

Confidentiality provisions in severance or settlement agreements will be subject to stricter requirements. Any confidentiality obligation related to alleged unlawful employment practices must be supported by separate and specific consideration, distinct from payment for a release of claims. Employers may not unilaterally state that confidentiality reflects the employee’s preference, and confidentiality provisions may not interfere with an employee’s right to engage in protected concerted activity or participate in government investigations or proceedings.

New AI Restrictions and Notice Requirements Under the Illinois Human Rights Act

Beginning January 1, 2026, amendments to the Illinois Human Rights Act will impose new obligations on employers that use artificial intelligence in employment decisions. Employers may not use AI tools in a manner that results in discrimination based on protected characteristics and must notify employees and job applicants when artificial intelligence is used to make or assist in making employment-related decisions. Employers using automated or algorithmic decision-making tools should review vendor practices, data inputs, and notice procedures to ensure compliance.

Paid Lactation Breaks for Nursing Employees

Starting January 1, 2026, amendments to the Illinois Nursing Mothers in the Workplace Act will require covered employers to pay employees for lactation breaks at their regular rate, unless doing so causes an undue hardship under the Illinois Human Rights Act. Employers may not require employees to use accrued paid leave for lactation breaks or reduce compensation in any other way during these breaks. The existing requirement to provide a private, non-bathroom space near the employee’s worksite for expressing breast milk remains unchanged.

New Job-Protected Leave for NICU Parents

The Family Neonatal Intensive Care Leave Act (NICLA) takes effect June 1, 2026, and provides job-protected, unpaid leave to employees whose child is receiving care in a neonatal intensive care unit (NICU). NICLA applies to employers with 16 or more employees. Employers with 16 to 50 employees must provide up to 10 days of NICU leave, while employers with 51 or more employees must provide up to 20 days. All employees are eligible regardless of tenure or hours worked. Leave may be taken continuously or intermittently, and employers may not require employees to use accrued paid leave. Reinstatement and anti-retaliation protections apply.

Expanded Organ Donation Leave Eligibility

Effective January 1, 2026, amendments to the Illinois Employee Blood and Organ Donation Leave Act expand eligibility for organ donation leave to include part-time employees. Eligible employees are entitled to up to 10 days of paid organ donation leave, paid at their average daily rate based on earnings during the past two months of employment. Employers should update leave policies and procedures accordingly.

What Illinois Employers Should Do Now

Employers with employees in Illinois should review and update their employment and severance agreement templates to ensure compliance with the amendments to the Workplace Transparency Act. Policies related to artificial intelligence, hiring technology, and employment decision-making should be evaluated for compliance with the new requirements. Leave and break policies should also be reviewed to address paid lactation breaks, NICU leave, and expanded eligibility for organ donation leave.

Advance planning and training will help reduce compliance risk as these new requirements take effect in 2026.

PrestigePEO is here to help. Please contact your HRBP with any questions.

In another move towards redefining the visa process for H-1B workers and their families, the federal government has unveiled broad new social media examining requirements.    Effective December 15, 2025, these new requirements demand that the social media profiles of H-1B applicants are made public, as well as the social media profiles of their H-4 spouses and children, allowing for expanded security screening of all online activity and work history. Public access means that all posts, photos, comments, connections, and related commentary across all social media platforms would be accessible and visible, for evaluation, including work history verification, inconsistencies that may be found in the application, and potential security issues.

In addition, the social media history of an applicant’s spouse or children could initiate increased analysis of the entire family.   Consular processing will not be completed if social media accounts are not compliant with these new requirements.  These changes are expected to result in application processing delays of weeks or months. This new rule is similar to the changes made to the F-1 applicant (student visa) process with regards to on-line social media vetting. As of Mid-December, applicants and their families who are processing these types of visas in India, are already reporting delays in interviews that have been rescheduled from December to as late as April 2026.  These new screening requirements are anticipated to create even more processing delays over time.

Experts agree that international travel for H-1B workers returning in the near future could become riskier if their social media does not satisfy this public profile access requirement, which may result in delays.  Employers should coordinate contingency arrangements with workers, such as remote work options, should travel become an issue.

It is important that employers understand these new requirements and prepare their workforce for these changes.  All H-1B workers should be notified about the new public profile requirements, inclusive of their spouses and children and be advised to review their social medial platforms for accuracy and alignment with application materials. Any anticipated international travel should be evaluated, and potential delays considered.  Delays in petition adjudication should be expected and planned for as well.  Employers are encouraged to review workers’ job titles, job descriptions, and job duties in order to coordinate efforts and ensure accuracy and consistency in social media profile depictions.

PrestigePEO is here to help and will continue to monitor these developments. Please contact your HRBP with any questions.

New Hampshire has enacted several employment laws affecting leave, job protection, and hiring practices. Some are voluntary, while others become mandatory based on employer size. Business owners should review each law’s requirements and prepare to ensure compliance.

Granite State Paid Family Leave Plan (Voluntary)

Status: In effect
Who it applies to: Employers that choose to participate

What this law means

New Hampshire offers a voluntary paid family leave program, the Granite State Paid Family Leave Plan. Employers may provide Family and Medical Leave Insurance, which partially replaces employee pay during approved family-related absences.

The state purchases this insurance for its employees and requires carriers to offer the same coverage to private employers and individuals without employer coverage. This structure aims to keep costs affordable.

If an employer offers this coverage, eligible employees may receive:

• Sixty percent of their average weekly pay
• Up to six weeks of wage replacement each year
• Coverage for leave related to childbirth, adoption or foster placement, caring for certain family members with severe health conditions, and particular military-related family needs

Employees without employer-sponsored coverage may purchase insurance through a state-managed pool, with premiums capped at five dollars per week.

Employers that sponsor this insurance must:

• Return the employee to the same or a similar job after the leave.
• Continue health insurance during the leave.
• Avoid punishing or retaliating against employees for using the benefit.

Employers that pay premiums may also claim a tax credit equal to half of the premium cost.

What employers should do

• Decide whether offering paid family leave insurance fits your business goals.
• Update written policies if you opt to assess whether paid family leave insurance aligns with your business objectives. Teams can handle deductions if employees buy coverage individually.
• Track premiums accurately for tax purposes.

Job Protection for Employees with Deployed Spouses (House Bill 225)

Signed: July 15, 2025
Effective: January 1, 2026
Who it applies to: Employers with 50 or more employees at a single New Hampshire location

What this law means

Starting in 2026, covered employers must protect the jobs of employees whose spouses are involuntarily deployed for military service due to war, national emergencies, or similar operations.

Covered employers may not terminate, refuse to hire, demote, or take adverse action against employees due to a spouse’s deployment. Employees may take unpaid leave for deployment-related reasons. Continuing benefits during leave is optional for employers. Retuning the employee to the same position or a comparable one is important, unless returning the employee is truly impossible or unreasonable.

Employees must notify employers within 30 days of receiving a deployment notice. Employers must provide written confirmation of receipt and compliance. Violations may result in complaints, reinstatement, back pay, and legal costs.

What employers should do

• Verify if your business meets the 50-employee threshold.
• Implement a military spouse protection policy before January 1, 2026.
• Create a simple process for notice and documentation.
• Train managers to avoid disciplinary actions related to a spouse’s deployment.
• Plan for return-to-work decisions.

Expanded Hiring Preferences for Veterans and Military Spouses (House Bill 64)

Signed: June 23, 2025
Effective: August 22, 2025
Who it applies to: Employers that use hiring or promotion preferences

What this law means

This law broadens eligibility for voluntary hiring preference policies. Employers may now include:

• Veterans
• Active-duty service members
• Military spouses

A military spouse is defined as someone legally married to an active-duty service member and registered in the federal Army Benefits System.

The law also permits the state to give purchasing preference to qualifying military spouse-owned and disabled veteran-owned businesses that meet ownership and control requirements.

Employers are not required to offer hiring preferences, but if they do, the law now clearly defines eligible groups.

What employers should do

• Review and update hiring preference policies.
• Ensure hiring managers understand the expanded eligibility.
• Apply preferences consistently and document all decisions.
• Determine whether your business qualifies for state purchasing preferences.

Bottom line

These changes expand protections for military families and clarify employer options for leave and hiring. Employers who update policies and train managers now will be better prepared for 2026.

As always, PrestigePEO is here to help with any compliance needs. For questions regarding these new regulations or other matters, please contact your HRBP for assistance.

Since the New Jersey Pay Transparency Act (the “Act”) went into effect in June of this year, there has been some uncertainty regarding its scope. In an effort to ease such uncertainty and to address concerns, New Jersey’s Department of Labor and Work Force Development (NJDOL) issued proposed regulations. As of now, these regulations have not been fully adopted but the NJDOL considers them to be instructive and has utilized the proposed regulations in the information that can be found on the NJDOL website regarding pay transparency.

Definition of Employer

The Act’s definition of Employer is rather straightforward but lacks clarity with respect to remote work or applications that are received from outside of New Jersey.

“Employer” means any person, company, corporation, firm, labor organization, or association which has 10 or more employees over 20 calendar weeks and does business, employs persons, or takes applications for employment within this State, including the State, any county or municipality, or any instrumentality thereof. The term shall include job placement and referral agencies and other employment agencies.[1]

In an attempt to provide additional clarity, the proposed regulations add the following to how Employer is defined in the Act:

“Employer” means any person, company, corporation, firm, labor organization, or association which has 10 or more employees over 20 calendar weeks, whether those employees work inside or outside of New Jersey, and does business, employs persons, or takes applications for employment within New Jersey, including the State, any county or municipality, or any instrumentality thereof. The term “employer” shall include employment agencies. To “take applications for employment within New Jersey” means both that the solicitation occurred in New Jersey and that the physical location of the prospective employment is in whole, or in substantial part, within New Jersey. [2]

The proposed regulations make it clear that an employer qualifies under the Act if they have 10 or more employees, regardless of where those employees conduct their work from. For employers based outside of New Jersey, these guidelines indicate that such businesses may be subject to the requirements of the Act if the employer accepts applications for employment by employees residing in New Jersey and who subsequently work remotely from within New Jersey.

Posting Requirements

Employers subject to the Act must include the position’s pay rate (either hourly or salary), the pay range (either salary or hourly), a general description of benefits offered, and any other compensation programs the employee could be eligible for, for internal and external job postings. The proposed regulations further define “benefits” under the Act to include, “employee fringe benefits, including, but not limited to, health insurance, life insurance, disability insurance, paid time off (including vacation, holidays, personal leave, and sick leave), training, and pension.” [3] The proposed rules also denote a broad definition for other compensation programs, which includes, but is not limited to, profit-sharing, bonuses, and commissions. If an employer elects to utilize pay ranges, the proposed regulations state that the maximum end of the pay range should not exceed 60% of the minimum.

Penalties for Violation

The Act states that there is an initial penalty of $300 for a first violation under the law and that for each subsequent violation, the penalty is $600. The proposed regulations, however, note that for second and subsequent violations, the penalty shall not exceed $600. There is an accompanying factor test to assist the Commissioner of the Department of Labor and Workforce Development, or their designee, in determining the penalty amount; those factors are:

1. The seriousness of the violation(s);
2. The past history of previous violations by the employer;
3. The good faith of the employer;
4. The size of the employer’s business; and
5. Any other factors which the Commissioner deems appropriate[4].

Employers are held responsible for postings on third-party platforms/recruiters that violate the Act so long as the Employer retains control over the content of any job postings. Employers may not be held responsible if a third-party platform pulls data from various sources and shares the posting without the Employer’s knowledge or involvement. The proposed regulations group multiple postings for one position or promotion as one violation rather than as each individual posting as a violation.

What should Employers do now?

Although the proposed regulations have not been officially adopted, the NJDOL appears to rely heavily on the proposed regulations as guidelines to enforce the Act. Employers should continue to comply with the Act when posting internal or external positions and should be mindful of postings for remote workers.

PrestigePEO is here to help. For questions regarding the existing Act, these proposed regulations, or other matters, please contact your HRBP for assistance.

[1]https://pub.njleg.state.nj.us/Bills/2024/PL24/91_.PDF

[2] https://www.nj.gov/labor/assets/PDFs/Legal%20Notices/Notices%20of%20Proposal/57%20N.J.R.%202220_a_.pdf

[3] https://www.nj.gov/labor/assets/PDFs/Legal%20Notices/Notices%20of%20Proposal/57%20N.J.R.%202220_a_.pdf

[4] https://www.nj.gov/labor/assets/PDFs/Legal%20Notices/Notices%20of%20Proposal/57%20N.J.R.%202220_a_.pdf

On October 29, new requirements for the Massachusetts Equal Pay Act (MEPA) took effect which extended the requirement from large employers to all employers of at least 25 employees to disclose wage range information on job posting and upon request to employees and applicants. For purposes of the law’s coverage and for accurate counts of employees, all full-time, part-time, seasonal, and temporary employees are included. Employers that fall into the expanded category are now required to:

1. Include the pay range for a job position on all job postings;
2. Disclose the pay range for a position to existing employees who receive a promotion or a transfer to a new position with different responsibilities;

And

3. Provide pay range information for a particular position to an employee who holds the position or to an applicant upon receipt of request.

Pay Range

Under the law, “pay range” is defined as the annual salary range or hourly wage that the employer reasonably and in good faith expects to pay for such position at the time or posting or request. This does not include disclosure of commission structures, equity grant information, or bonuses.

Anti-discrimination and disclosure

Employers are prohibited from seeking the wage or salary history of a prospective employee but does not prohibit voluntary disclosure. Employers are also prohibited from retaliating against an employee or applicant who exercises their rights under this law.

Remote Work

Lastly, the law is extended to remote workers whose positions can be performed remotely to a Massachusetts worksite as well as remote workers with a primary place of work in Massachusetts. This means that remote workers who telecommute to a Massachusetts worksite, even if they reside in another state, are included or if a remote workers’ primary location for a job is in Massachusetts, then they are covered.

Enforcement

Enforcement of the law is cabined to the State Attorney General as there is no private right of action for violations. Fines for violations start at $500 and can climb to penalties from $7,500-$25,000. However, within the first year of the law’s enforceability, employers have a 48-hour window to correct job postings before penalties are levied.

As always, Prestige is here to help with any compliance needs. For questions regarding these new regulations or other matters, please contact your HRBP for assistance.