Labor & Employment Law Update

Beginning January 1, 2027, Illinois employers will face expanded obligations under the Illinois Human Rights Act (IHRA). New amendments increase potential liability for employment policies that disproportionately affect protected groups and require employers to provide reasonable accommodations for menopause-related conditions.

Employers should review workplace policies, accommodation procedures, and manager training programs before the changes take effect.

Employment Policies May Face Greater Scrutiny Under Expanded Disparate Impact Protections

The Civil Rights Safeguard Act clarifies that employers may face liability not only for intentionally discriminatory policies, but also for policies that disproportionately affect certain protected groups.

 Under the amendment, an employer may violate the IHRA if its policies or practices have the effect discriminating against employees or applicants based citizenship status, family responsibilities, work authorization status, arrest record, or conviction status, unless the employer can show the policies or practices serve a legitimate purpose.

The law also places similar requirements on financial institutions, requiring them to justify practices that may have a discriminatory effect.

Illinois Employers Must Accommodate Menopause-Related Conditions

The Illinois Menopause Equity and Care Act expands workplace protections for employees experiencing menopause-related conditions, including perimenopause, menopause, and associated symptoms such as sleep disruption, cognitive changes, mood changes, and vasomotor symptoms.

Beginning January 1, 2027, the Act will require employers to offer reasonable accommodations for menopause-related conditions, including flexible scheduling, modified work hours, and temperature or climate-adjusted workspaces. They will also be required to update workplace notices regarding reasonable accommodations for pregnancy, which includes menopause-related condition accommodations.

What Employers Should Do Before January 1, 2027

Illinois employers should use the months leading up to the effective date to review policies and procedures that may be affected by the amendments. In particular, employers should:

• Carefully consider whether any of the identified policies serve a legitimate business purpose that is defensible under the law;
• Update policies and employee handbooks to reflect these new amendments and added rights for Illinois-based employees;
• Ensure managers and supervisors are well trained on the updates,capable of recognizing policies or practices that may be affecting some groups more than others, and aware of expanded rights for menopausal and peri-menopausal employees; and
• Work with counsel early to identify any potential policies or practices that may be impacting protected groups disproportionately.