Workforce Bulletin

Recent amendments to the Illinois Workplace Transparency Act (WTA) (HB 3638) require changes to Illinois employment agreements and separation agreements, beginning as of January 1, 2026.

The WTA, first enacted in response to the #MeToo movement, imposes certain procedural requirements on employment-related contracts for Illinois employees. These amendments impose additional restrictions, the most significant of which involves confidentiality clauses in separation agreements.

We recommend our colleagues’ post on the Retail Labor and Employment Law blog: Three Lawsuits Brought by the U.S. EEOC Challenge Employer Separation Agreements, by Lauri F. Rasnick, Susan Gross Sholinsky, Frank C. Morris Jr., and Nancy L. Gunzenhauser.

Following is an excerpt:

The federal Equal Employment Opportunity Commission (“EEOC” or “Agency”) has been spending a fair amount of time in recent months challenging the validity and legality of employers’ separation agreements. This is apparently part of the EEOC’s core priorities, including “targeting ...

The federal Equal Employment Opportunity Commission (“EEOC” or “Agency”) has been spending a fair amount of time in recent months challenging the validity and legality of employers’ separation agreements. This is apparently part of the EEOC’s core priorities, including “targeting policies and practices that discourage or prohibit individuals from exercising their rights under employment discrimination statutes, or which impede the EEOC’s investigative or enforcement efforts.” Retail employers have not been exempted from the agency’s scrutiny. A ...