ILCS » Chapter 820 · Act 96
Illinois Compiled Statutes

820 ILCS 96/1-25 (2026)

Conditions of employment or continued employment

✓ laws through the 2026 session (checked Sept. 2026)
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(820 ILCS 96/1-25)
    Sec. 1-25. Conditions of employment or continued employment.
    (a) Any agreement, clause, covenant, or waiver that is a unilateral condition of employment or continued employment and has the purpose or effect of preventing an employee or prospective employee from making truthful statements or disclosures about alleged unlawful employment practices or engaging in protected concerted activity to address work-related issues is against public policy, void to the extent it prevents such statements or disclosures, and severable from an otherwise valid and enforceable contract under this Act.
    (b) Any agreement, clause, covenant, or waiver that is a unilateral condition of employment or continued employment and requires the employee or prospective employee to waive, arbitrate, or otherwise diminish any existing or future claim, right, or benefit related to an unlawful employment practice to which the employee or prospective employee would otherwise be entitled under any provision of State or federal law, including that which purports to shorten the applicable statute of limitation, apply non-Illinois law to an Illinois employee's claim, or require a venue outside of Illinois to adjudicate an Illinois employee's claim, is against public policy, void to the extent it denies an employee or prospective employee a substantive or procedural right or remedy related to alleged unlawful employment practices, and severable from an otherwise valid and enforceable contract under this Act.
    (c) Any agreement, clause, covenant, or waiver that is a mutual condition of employment or continued employment may include provisions that would otherwise be against public policy as a unilateral condition of employment or continued employment, but only if the agreement, clause, covenant, or waiver is in writing, demonstrates actual, knowing, and bargained-for consideration from both parties, and acknowledges the right of the employee or prospective employee to:
        (1) report any good faith allegation of unlawful
    
employment practices to any appropriate federal, State, or local government agency enforcing discrimination laws;
        (2) report any good faith allegation of criminal
    
conduct to any appropriate federal, State, or local official;
        (3) participate in a proceeding related to unlawful
    
employment practices, including any litigation brought by any federal, State, or local government agency or any other person who alleges that the employer has violated any State, federal, or local law, regulation, or rule;
        (4) make any truthful statements or disclosures
    
required by law, regulation, or legal process;
        (5) request or receive confidential legal advice; and
        (6) engage in concerted activity to address
    
work-related issues.
    (d) Failure to comply with the provisions of subsection (c) shall establish a rebuttable presumption that the agreement, clause, covenant, or waiver is a unilateral condition of employment or continued employment that is governed by subsection (a) or (b).
    (e) Nothing in this Section shall be construed to prevent an employee or prospective employee and an employer from negotiating and bargaining over the terms, privileges, and conditions of employment.
(Source: P.A. 104-320, eff. 1-1-26.)

    
Notes of Decisions
Cited in 5 cases (5 in the last 5 years), 2022–2026 · leading case: Nikoloff v. Northop Grumman Sys. Corp., 2026 IL App (1st) 252002-U.
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Nikoloff v. Northop Grumman Sys. Corp., 2026 IL App (1st) 252002-U. · cites it 3× “The plaintiff’s response also disputed an argument raised by the defendant that, if Illinois law applied here, then section 1-25(b) of the Workplace Transparency Act (820 ILCS 96/1-25(b) (West 2024))—which prohibits provisions in Illinois employment -7- No.”
Bergman, No. 3:25-cv-01318 (S.D. Ill. Feb. 3, 2026). · cites it 2× “820 ILCS 96/1-25(b). Laws that categorically prevent arbitration of particular claims are the type of conflicting state rules that the Supreme Court has held are displaced by the FAA.”
Budzyn v. KFC, No. 1:21-cv-04152 (N.D. Ill. Feb. 28, 2022). “Moreover, as the Illinois Legislature recognized in passing the IW’TA, Illinois seeks to ensure that all workplaces are free of unlawful discrimination and harassment by requiring that arbitration agreements comply with the standards set forth in 820 ILCS 96/1-25(d). ‘That said,…”
Nanberg v. 21st Century Flooring, LLC, No. 1:21-cv-06623, 2022 WL 4482761 (N.D. Ill. Sept. 27, 2022). “See 820 ILCS 96/1-25(b). As Plaintiffs themselves point out, however, the statute expressly states that it applies only to contracts “entered into, modified, or extended on or after” January 1, 2020.”
Saxon v. Sw. Airlines Co., No. 1:19-cv-00403, 2023 WL 2456382 (N.D. Ill. Mar. 10, 2023). “820 ILCS 96/1-25(b). This provision is limited to unlawful employment practices, which are defined as forms of “unlawful discrimination, harassment, or retaliation.”
820 ILCS 96/1-25(b): 4 cases
Nikoloff v. Northop Grumman Sys. Corp., 2026 IL App (1st) 252002-U. “The plaintiff’s response also disputed an argument raised by the defendant that, if Illinois law applied here, then section 1-25(b) of the Workplace Transparency Act (820 ILCS 96/1-25(b) (West 2024))—which prohibits provisions in Illinois employment -7- No.”
Bergman, No. 3:25-cv-01318 (S.D. Ill. Feb. 3, 2026). “820 ILCS 96/1-25(b). Laws that categorically prevent arbitration of particular claims are the type of conflicting state rules that the Supreme Court has held are displaced by the FAA.”
Nanberg v. 21st Century Flooring, LLC, No. 1:21-cv-06623, 2022 WL 4482761 (N.D. Ill. Sept. 27, 2022). “See 820 ILCS 96/1-25(b). As Plaintiffs themselves point out, however, the statute expressly states that it applies only to contracts “entered into, modified, or extended on or after” January 1, 2020.”
Saxon v. Sw. Airlines Co., No. 1:19-cv-00403, 2023 WL 2456382 (N.D. Ill. Mar. 10, 2023). “820 ILCS 96/1-25(b). This provision is limited to unlawful employment practices, which are defined as forms of “unlawful discrimination, harassment, or retaliation.”
820 ILCS 96/1-25(d): 1 case
Budzyn v. KFC, No. 1:21-cv-04152 (N.D. Ill. Feb. 28, 2022). “Moreover, as the Illinois Legislature recognized in passing the IW’TA, Illinois seeks to ensure that all workplaces are free of unlawful discrimination and harassment by requiring that arbitration agreements comply with the standards set forth in 820 ILCS 96/1-25(d). ‘That said,…”
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