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The CEO Views > Blog > Industry > Legal > Wrongful Termination in IL: New 2026 Laws You Need to Know
Legal

Wrongful Termination in IL: New 2026 Laws You Need to Know

The CEO Views
Last updated: 2026/02/04 at 12:35 PM
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Wrongful Termination in IL New 2026 Laws You Need to Know

Getting fired from your job is a scary experience that can leave you wondering how you will pay your bills. In Illinois, most workers are “at-will,” which usually means a boss can let you go for almost any reason at all. However, your employer cannot fire you for a reason that breaks state or federal laws. If you suspect your firing was illegal, you should talk to an Illinois employment law lawyer to see if you have a case.

How Illinois Recognizes Wrongful Termination

Illinois follows at-will employment rules, but there are several big exceptions that protect workers. You are wrongfully terminated if your boss fires you because of who you are or because you stood up for your legal rights. For example, it is illegal for a company to let you go because of your race, religion, gender, or age. You are also protected if you are fired as a way to “get back at you” for something legal you did, which is called retaliation.

There are many ways a termination can cross the line into illegal territory in our state. An Illinois employment law lawyer often looks for these common signs of an unlawful firing:

  • Whistleblowing: Being fired for reporting your company for breaking safety rules or stealing money.
  • Worker’s Compensation: Losing your job because you filed a claim after getting hurt on the job.
  • Discrimination: Firing an employee based on a protected trait like a disability or pregnancy.
  • Breach of Contract: Firing you when you have a written agreement that says you can only be let go for “just cause.”
  • Civic Duties: Letting you go because you had to miss work for jury duty or to vote in an election.

New 2026 Laws: The Workplace Transparency Act Expansion

Starting January 1, 2026, Illinois has made it much harder for bosses to hide bad behavior through secret agreements. The updated Workplace Transparency Act (WTA) now bans employers from using “one-sided” contracts that stop you from speaking out about illegal things at work. If your boss tries to make you sign an agreement that says you cannot talk about harassment or safety issues, that contract might be void under the new law. These changes ensure that workers can tell their stories without fear of being sued by their former company.

These new rules also stop companies from forcing you into out-of-state courts. In the past, some bosses would put a clause in a contract saying you had to go to a different state, like Delaware or New York, to sue them. Now, if you live and work in Illinois, the law says your case must stay in Illinois courts, where our local laws apply. To ensure your rights are protected under these new rules, you should contact an Illinois employment lawyer from Favaro & Gorman.

  • No hidden venues: Bosses cannot force Illinois workers to travel across the country for a legal fight.
  • Statute of limitations: Companies are now banned from shortening the time you have to file a lawsuit in your contract.
  • Separate payments: If an employer wants you to stay quiet as part of a settlement, they must pay you extra money just for that “confidentiality” clause.
  • Consequential damages: Workers who win a case against an illegal contract can now get extra money for the harm the contract caused them.

Artificial Intelligence and the Human Rights Act in 2026

Another major change for 2026 involves the use of technology in the hiring and firing process. Many companies in Illinois now use Artificial Intelligence (AI) to decide who gets a promotion or who gets laid off. The 2026 update to the Illinois Human Rights Act (IHRA) makes it clear that using “biased” computers is just as illegal as a biased human boss. If a computer program picks people to fire based on their age or zip code, the company is responsible for that discrimination.

Employers must now tell you if they are using AI to make big decisions about your job. If you were fired after an AI “score” came back low, you have the right to know how that score was calculated. This law helps prevent “digital discrimination” where people are treated unfairly by a machine. Your attorney can help you dig into these technical details to see if a computer program was the reason you lost your job illegally.

Fight Back Against Your Illegal Termination Today

You do not have to accept an unfair firing as just “bad luck” when the law is on your side. The new 2026 rules in Illinois give you more power than ever to hold your former boss accountable for their actions. Taking the first step to talk to a legal team can help you understand if you are owed money for your lost wages and stress. Reach out for a consultation today to see how you can protect your career and your future.

The CEO Views February 4, 2026
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