Illinois Workplace Transparency Act: Employee Rights

Illinois updated the Workplace Transparency Act (WTA) effective January 1, 2026. The changes affect employment contracts, separation agreements, and settlement agreements. They matter most when those documents involve discrimination, harassment, retaliation, or other unlawful workplace conduct.

If you are an Illinois employee being asked to sign any workplace agreement, you should know what this law requires.

What Is the Workplace Transparency Act?

The Workplace Transparency Act (820 ILCS 96) became law in 2020. It protects employees from unlawful discrimination and harassment. It also limits what employers can demand as a non-negotiable condition of employment. And it sets rules for confidentiality clauses in settlement and termination agreements.

The 2026 amendments expand those protections. They close gaps that employers had used to their advantage.

Take-It-or-Leave-It Contracts: What Employers Cannot Do

A unilateral condition of employment is a contract term an employer imposes as non-negotiable. It is a take-it-or-leave-it requirement. Under the WTA, employers cannot use these contracts to do the following.

Silence you about workplace misconduct. Any non-negotiable clause that stops you from speaking truthfully about discrimination, harassment, retaliation, or wage theft is void under Illinois law. It is unenforceable.

Take away your legal rights. A unilateral contract term cannot force you to waive or arbitrate claims related to unlawful employment practices. This includes terms that shorten your filing deadline, apply non-Illinois law to your case, or require you to litigate outside Illinois.

Block you from acting with coworkers. The 2026 amendments added protection for concerted activity. That means organizing with coworkers to raise workplace concerns. An employer cannot use a take-it-or-leave-it contract to prevent this.

If a contract violates these rules, the illegal clause is void. The rest of the contract can still stand.

When Negotiated Agreements Can Include Broader Terms

The WTA treats negotiated agreements differently from take-it-or-leave-it ones. A mutually negotiated agreement can include terms that would otherwise be void. But it must meet specific requirements.

The agreement must be in writing. It must reflect real consideration from both sides. And it must confirm your right to do all of the following.

Report allegations of unlawful employment practices to the IDHR, EEOC, Illinois Department of Labor, OSHA, NLRB, or any other applicable agency.

Report criminal conduct to any appropriate government official.

Take part in any proceeding related to unlawful employment practices. This includes agency investigations and lawsuits brought by other employees.

Make truthful statements required by law or legal process.

Seek confidential legal advice.

Engage in concerted activity to address work-related issues. The 2026 amendments added this right. It must now be preserved in any mutual agreement that restricts other employee conduct.

If an agreement omits these protections, it is presumed to be a unilateral condition of employment. The stricter rules then apply.

Settlement and Separation Agreements: New Protections

The WTA sets clear rules for settlement and termination agreements that include confidentiality clauses. For a confidentiality clause to be enforceable, the agreement must satisfy all of the following.

Confidentiality must be your choice. It must be your documented preference and mutually beneficial. The employer cannot simply impose it.

You must be told about your right to legal review. The employer must notify you in writing that you can have an attorney or representative review the agreement before you sign.

Confidentiality must have its own consideration. That consideration must be separate from any money paid for your release of claims.

The agreement cannot release future claims. It can only cover claims that existed before you signed.

You get 21 days to review. You have at least 21 calendar days to consider the agreement. You can sign sooner if you choose.

You have 7 days to change your mind. After signing, you have 7 calendar days to revoke the agreement. It is not effective until that period expires.

The 2026 amendments add one more limit. A confidentiality clause cannot restrict future concerted activity related to workplace conditions. An employer can ask you to keep your own settlement private. But it cannot use that agreement to stop you from organizing with coworkers later.

Employers are also prohibited from inserting language that claims confidentiality is your preference. If an employer adds that language on its own, the confidentiality clause is void.

Your Right to Testify Cannot Be Waived

The WTA protects your right to testify. This covers any legal, administrative, legislative, or arbitral proceeding. It includes depositions.

Any agreement that waives your right to testify about criminal conduct or unlawful employment practices is void. This applies when you are required to attend a proceeding by court order, subpoena, or written agency request. The 2026 amendments confirm that this was always the law.

What Happens if an Employer Violates the WTA?

The 2026 amendments added consequential damages as a remedy. Previously, the statute allowed attorney’s fees and costs but not consequential damages.

Now, if you win a final judgment challenging an illegal contract provision, you can recover consequential damages. The same is true if you successfully defend against an employer trying to enforce an unlawful confidentiality clause. In either case, you are also entitled to attorney’s fees and costs.

This change increases the risk employers face when they push illegal contract terms. It also gives employees a stronger reason to challenge those terms.

Why This Matters for Illinois Employees

Employers routinely include confidentiality clauses, non-disparagement provisions, and arbitration requirements in employment and separation agreements. Some of those provisions violate the WTA. Employees who sign without knowing their rights may give up protections the law requires employers to preserve.

The WTA applies to contracts entered into, modified, or extended on or after the law’s effective date. For agreements signed or renegotiated on or after January 1, 2026, all of the amendments described above apply.

If you have been asked to sign an employment agreement or separation package, or if you have questions about an agreement you already signed, talk to an employment attorney before you act.

Talk to an Illinois Employment Attorney

Emery Law represents employees in Illinois. We handle discrimination, harassment, retaliation, wrongful termination, and wage claims. We also review employment and separation agreements and advise employees on whether the terms comply with Illinois law.

Ethan White is an employment attorney with nearly two decades of litigation experience. His practice focuses nearly exclusively on the employee side. If you have a workplace dispute or questions about a contract, contact Emery Law for a free initial consultation.