2026 Workplace Transparency Act Protects Employees When Reporting Unlawful Practices
The 2026 Workplace Transparency Act amendment strengthens Illinois law by expanding protections for employees who report unlawful employment practices and engage in protected workplace activity. As of January 1, 2026, amendments to the Act clarify what employers may and may not require employees to agree to as a condition of employment, settlement, or termination. The changes reinforce long-standing public policy goals: preventing unlawful employment practices, preserving employee rights, and reducing employee retaliation when workers speak up about misconduct.
Illinois lawmakers enacted the original Workplace Transparency Act to balance two competing interests: the freedom of parties to contract and the State’s compelling interest in eliminating workplace discrimination, harassment, and retaliation. The 2026 amendment builds on that framework by closing gaps that allowed certain restrictive provisions to discourage reporting or silence employees through contractual pressure.
The Original Workplace Transparency Act and Employee Reporting Rights
Before the 2026 amendment, the Workplace Transparency Act already prohibited employers from using contracts, agreements, or policies to block employees from reporting unlawful conduct. Covered individuals include current, prospective, and former employees. The Act applies to a wide range of documents, including employment agreements, confidentiality provisions, waivers, and other conditions of employment.
Under the original law, employers could not prevent workers from reporting alleged unlawful employment practices to federal, state, or local agencies. These protections extended to discrimination, harassment, and retaliation claims actionable under Illinois or federal law. The Act also protected employees’ rights to engage in concerted activity, such as discussing workplace conditions or participating in investigations.
The law further addressed settlement and termination agreements. While confidentiality provisions were permitted in limited circumstances, they had to meet strict requirements, including being the employee’s documented preference, supported by separate consideration, and accompanied by notice of the employee’s right to consult an attorney. Agreements could not waive future claims or bar participation in government proceedings.
Key 2026 Changes to the Illinois Workplace Transparency Act
With the passing of Illinois Public Act 104-0320, the 2026 Workplace Transparency Act amendment expands and clarifies employee protections by addressing how employment agreements are structured and enforced. The amendment focuses on reducing employee retaliation and preventing employers from using non-negotiable terms to limit reporting or legal rights.
Two core changes stand out:
Stronger limits on unilateral employment conditions: Employers may not require employees or prospective employees to accept non-negotiable terms that prevent truthful statements or disclosures about unlawful employment practices or restrict participation in protected concerted activity. Agreements that attempt to limit these rights are void to the extent they conflict with the law.
Expanded remedies for violations: Employees who successfully challenge unlawful provisions may recover consequential damages, costs, and reasonable attorneys’ fees. This addition reinforces accountability and discourages employers from relying on restrictive language that violates public policy.
The amendment also clarifies the distinction between unilateral and mutual conditions of employment. While negotiated agreements are still allowed under Illinois law, they must demonstrate actual, knowing, and bargained-for consideration from both parties and explicitly preserve employees’ rights to report unlawful conduct, participate in proceedings, and seek legal advice.
How the 2026 Workplace Transparency Act Amendment Affects Employees
For employees, the 2026 Workplace Transparency Act amendment provides clearer protection when reporting misconduct or participating in investigations. Workers cannot be forced to choose between keeping their jobs and speaking truthfully about unlawful employment practices. This includes reporting discrimination, harassment, retaliation, or other violations enforced by agencies such as the Illinois Department of Human Rights, the Illinois Department of Labor, or the Equal Employment Opportunity Commission.
The amendments also address subtle forms of employee retaliation. Even when no direct discipline occurs, contractual provisions that chill reporting or restrict legal rights may now be challenged more effectively. Employees who sign agreements containing unlawful terms may seek relief without forfeiting their ability to pursue valid claims.
Importantly, the law continues to protect employees’ right to testify in administrative, legislative, arbitral, or judicial proceedings. Any agreement that attempts to waive this right is void and unenforceable under Illinois public policy.
For employees considering settlement or termination agreements, the 2026 changes underscore the importance of understanding what can (and cannot) be required. Employers must provide notice of the right to consult counsel and allow adequate time for review to reinforce informed decision-making.
Reinforcing Transparency and Accountability in Illinois Workplaces
The 2026 amendment to the Workplace Transparency Act reinforces Illinois’ commitment to transparency, accountability, and lawful employment practices. By tightening restrictions on unilateral employment agreements and expanding remedies for violations, the law strengthens protections against employee retaliation and unlawful silence.
For employees, the Act confirms that reporting misconduct is a protected activity that cannot be contractually waived away. For employers, it emphasizes the need for carefully drafted agreements that respect statutory rights and public policy. As of January 1, 2026, Illinois workplaces operate under clearer rules designed to protect individuals who raise concerns about unlawful employment practices.
To make sure your rights are protected under the Workplace Transparency Act, contact the employment and civil rights law firm of O’Malley & Madden, P.C.
