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Illinois Compiled Statutes

115 ILCS 5/4 (2026)

Employer rights

✓ current as of May 2026
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(115 ILCS 5/4) (from Ch. 48, par. 1704)
    (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
    Sec. 4. Employer rights. Employers shall not be required to bargain over matters of inherent managerial policy, which shall include such areas of discretion or policy as the functions of the employer, standards of services, its overall budget, the organizational structure and selection of new employees and direction of employees. Employers, however, shall be required to bargain collectively with regard to policy matters directly affecting wages, hours and terms and conditions of employment as well as the impact thereon upon request by employee representatives, except as provided in Section 10.5. To preserve the rights of employers and exclusive representatives which have established collective bargaining relationships or negotiated collective bargaining agreements prior to the effective date of this Act, employers shall be required to bargain collectively with regard to any matter concerning wages, hours or conditions of employment about which they have bargained for and agreed to in a collective bargaining agreement prior to the effective date of this Act, except as provided in Section 10.5.
(Source: P.A. 98-599, eff. 6-1-14.)
 
    (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
    Sec. 4. Employer rights. Employers shall not be required to bargain over matters of inherent managerial policy, which shall include such areas of discretion or policy as the functions of the employer, standards of services, its overall budget, the organizational structure and selection of new employees and direction of employees. Employers, however, shall be required to bargain collectively with regard to policy matters directly affecting wages, hours and terms and conditions of employment as well as the impact thereon upon request by employee representatives. To preserve the rights of employers and exclusive representatives which have established collective bargaining relationships or negotiated collective bargaining agreements prior to the effective date of this Act, employers shall be required to bargain collectively with regard to any matter concerning wages, hours or conditions of employment about which they have bargained for and agreed to in a collective bargaining agreement prior to the effective date of this Act.
(Source: P.A. 83-1014.)

    
Notes of Decisions
Cited in 15 cases (1 in the last 5 years), 1998–2022 · leading case: City of Belvidere v. Illinois State Labor Relations Bd., 692 N.E.2d 295 (Ill. 1998).
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City of Belvidere v. Illinois State Labor Relations Bd., 692 N.E.2d 295 (Ill. 1998). · cites it 2× “Compare 115 ILCS 5/4 (West 1994) with 5 ILCS 315/4 (West 1994).”
Bd. of Trs. v. Illinois Labor Relations Bd., 862 N.E.2d 944 (Ill. 2007). · cites it 2× “115 ILCS 5/4 (West 2000) (recognizing that "[e]mployers shall not be required to bargain over matters of inherent managerial policy, which shall include such areas of discretion or policy as the functions of the employer, standards of services, its overall budget, the…”
Bd. of Educ. of the City of Chicago v. Illinois Educ. Labor Relations Bd., 2015 IL 118043 (Ill. 2016). · cites it 3× “” 115 ILCS 5/4 (West 2010). The instant DNH grievances are inarbitrable because their arbitration would conflict with section 4 of the Act.”
Bd. of Trs. of the Univ. of Illinois v. Illinois Educ. Labor Relations Bd., 836 N.E.2d 199 (Ill. App. Ct. 2005). · cites it 6× “" 115 ILCS 5/4 (West 2000). The Supreme Court of Illinois has set forth a test to determine when, under section 4, bargaining is "mandatory.”
Bd. of Educ. of the City of Chicago v. Illinois Educ. Labor Relations Bd., 2015 IL 118043 (Ill. 2015). · cites it 2× “” 115 ILCS 5/4, 10(a) (West 2010); Central City, 149 Ill.”
Chicago Teachers Union v. Chicago Sch. Reform Bd. of Trs., 787 N.E.2d 224 (Ill. App. Ct. 2003). “” 115 ILCS 5/4 (West 2000). The collective bargaining agreement must contain a grievance resolution procedure and must “provide for binding arbitration of disputes concerning the administration or interpretation of the agreement.”
Bd. of Educ. of the City of Chicago v. Illinois Educ. Labor Relations Bd., 2014 IL App (1st) 130285 (Ill. App. Ct. 2014). · cites it 2× “” 115 ILCS 5/4 (West 2010). ¶ 36 The statutory language mirrors the language in article 48-2 of the CBA and, thus, we reach the same conclusion here.”
Cmty. Unit Sch. Dist. No. 5 v. Illinois Educ. Labor Relations Bd., 2014 IL App (4th) 130294 (Ill. App. Ct. 2014). · cites it 2× “¶ 78 Sections 4 and 10 of the Act require educational employers to engage in collective bargaining with respect to “wages, hours and terms and conditions of employment” of educational employees.”
Cmty. Unit Sch. Dist. No. 5 v. The Illinois Educ. Labor Relations Bd., 2014 IL App (4th) 130294 (Ill. App. Ct. 2014). · cites it 2× “¶ 78 Sections 4 and 10 of the Act require educational employers to engage in collective bargaining with respect to "wages, hours and terms and conditions of employment" of educational employees.”
The Bd. of Educ. of the City of Chicago v. The Illinois Educ. Labor Relations Bd., 2014 IL App (1st) 130285 (Ill. App. Ct. 2014). “” 115 ILCS 5/4 (West 2010). The Board argues that it is only required to arbitrate a decision if it is required to bargain over it and, since section 4 provides that it is not required to bargain over its decision not to rehire probationary teachers, it cannot be required to…”
Sherrard Cmty. Unit Sch. Dist. No. 200 v. Illinois Educ. Labor Relations Bd., 696 N.E.2d 833 (Ill. App. Ct. 1998). · cites it 2× “” 115 ILCS 5/4 (West 1994). However, employers are also required by section 4 of the Act, as to the impact of policy matters upon which they are required, to bargain collectively pursuant to section 3(b) of the Act.”
Ball-Chatham Cmty. Unit Sch. Dist. No. 5 v. Illinois Educ. Labor Relations Bd., 2022 IL App (4th) 210428-U (Ill. App. Ct. 2022). · cites it 2× “The District disagreed, contending (1) the complaint about its failure to give the required notice of staff changes was untimely and (2) the complaint about its purported failure to appropriately place new hires on the salary schedule had no contractual basis, and even if it…”
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