Employers in Illinois and across the country should stay informed on key legal developments impacting workplace practices. Here are five important labor and employment updates for June 2026.
1. IDOL Revised Regulations Regarding the Clerical Exemption To the IDTLSA
The Illinois Department of Labor has adopted revised regulations that provide much-needed clarity on the scope of the “clerical” exception to the Illinois Day and Temporary Labor Services Act (“IDTLSA”).
Under the IDTLSA, day or temporary laborers are entitled to “equal pay for equal work” if they perform more than 720 hours of work within a 12-month period at the same third-party client site. Such “equal pay for equal work” can be calculated in one of two ways. First, a day and temporary labor services agency can pay day or temporary laborers who cross the 720-hour threshold the same hourly wage as either a directly hired comparator employee who performs substantially similar work or, if there is no comparator, the lowest paid directly hired employee who is entitled to overtime under the Fair Labor Standards Act. Second, agencies can pay day or temporary laborers who cross the 720-hour threshold according to rates set forth by the United States Bureau of Labor Statistics. The IDTLSA also requires day and temporary labor services agencies to provide employees who cross the 720-hour threshold “substantially similar benefits to the job classification of employees performing the same or substantially similar work on jobs and performed under similar working conditions.” Alternatively, agencies can pay day or temporary laborers the hourly average cash equivalent to the cost of the benefits.
These requirements can be onerous for day and temporary labor services agencies. But critically, the IDTLSA does not apply to labor “of a professional or clerical nature.” The Department of Labor previously set forth regulations stating that the “professional” exception covers “any employee engaged in work predominantly intellectual and varied in character, rather than routine mental, manual, mechanical or physical work.” But until now, day and temporary labor services agencies have been left to guess at the scope of the “clerical” exception. The revised regulations, which took effect on April 28, 2026, state that “clerical” means “administrative work in an office or office-like setting and may include a combination of answering telephones, bookkeeping, typing or word processing, office machine operations, processing e-mail and other correspondence, and filing.”
2. New Minimum Wages Set to Take Effect in Cook County and Chicago
On July 1, 2026, the minimum wage in Cook County will increase from $15.00 to $15.40 per hour for non-tipped employees, and from $9.00 to $9.25 per hour for tipped employees. A copy of the updated 2026 Notice to Employees is available here.
Likewise, on July 1, 2026, the minimum wage in the City of Chicago will increase from the current $16.60 per hour to $17.05 per hour. The minimum wage for tipped employees, however, remains at the current $12.62 per hour, notwithstanding the previously planned increase to $12.96 per hour. The City Council passed a new ordinance on May 20, 2026, pausing the upcoming increase until June 30, 2028, for larger businesses with 21 or more employees and June 30, 2030, for smaller ones with more than 3 but fewer than 21 employees, and delaying the planned phaseout of the tip credit for tipped workers under the One Fair Wage Ordinance.
The Illinois minimum wage currently remains at $15.00 per hour and $9.00 per hour for tipped employees (the rates in effect since January 1, 2025) until new legislation mandates further increases. The current mandatory poster for Illinois employers is available here.
3. Trump Administration Continues to Overhaul the Focus of the EEOC
The Trump Administration continues to retool the focus and mission of the Equal Employment Opportunity Commission (EEOC). In the latest move, the EEOC unveiled a new four-year National Enforcement Plan (NEP), which replaces the Biden Administration’s priority guidelines. The new NEP emphasizes combating “unlawful diversity, equity and inclusion programs” and stamping out employer “preferences” for foreign visa holders. Regarding DEI programs, the NEP specifically references Ames v. Ohio Department of Youth Services, in which the Supreme Court held that plaintiffs in “majority groups” are not subject to a higher burden of proof under Title VII. The NEP comes on the heels of EEOC Chair Andrea Lucas’ prior proclamations that the Commission will pay particular attention to religious discrimination.
The Plan underscores the importance of employers adapting to the EEOC’s evolving priorities. This may include “toning down,” “rebranding” and/or suspending DEI programs, such as scrapping or modifying hiring and employee retention goals that could be construed as unlawful quotas or discriminating against members of majority groups. As employers recall, the Biden Administration’s policies and priorities spurred a flurry of activity by employers to devise, implement, and apply employment-related policies and practices that mollified the EEOC, the NLRB, and other federal and state agencies. This is no different. Employers must continue to adapt and be mindful of which employment practices are more likely than others to draw unwanted attention from the EEOC.
4. IDHR Proposes Rules Regarding Use of AI In Employment
The Illinois Department of Human Rights has proposed rules that would require employers to provide detailed notices whenever AI is used to “influence or facilitate” covered employment decisions—including hiring, recruiting, promotion, discipline, scheduling, productivity monitoring, resume screening, and even any other “conditions” of employment—and would apply even where AI merely assists human decision-making. Employers would also need to disclose information about the AI tool, vendor, purpose, data collected, affected job categories, and accommodation rights, while maintaining related records for at least three years. The proposed regulations are broader than many other states’ AI employment laws, and signal Illinois continued aggressive posture on workplace AI transparency and anti-discrimination enforcement.
At a high level, the proposed rules require employers to:
- Provide notice to employees, applicants, and bargaining representatives when AI is used in employment decisions.
- Provide notice annually to current employees, and whenever a new or substantially updated AI system is adopted.
- Include the notice in handbooks/policies, workplace postings, websites/intranets, and job postings.
- Disclose specified information about the AI system, including the developer/vendor, purpose, employment function affected, data processed, and accommodation procedures.
- Make notices accessible, including in commonly spoken workforce languages and in formats accessible to individuals with disabilities.
- Retain AI-related notices, disclosures, and records of AI use for at least three years.
5. Chicago Issues Revised Rules Regarding Paid Leave and Paid Sick and Safe Leave Ordinance
Effective June 1, 2026, Chicago has issued revised rules implementing its Paid Leave and Paid Sick and Safe Leave Ordinance. Although the rules in many respects confirm the existing provisions of the Ordinance, there are some notable clarifications and new compliance expectations, including the following:
- The rules make clear that non-exempt employees accrue leave for all hours worked – including overtime. Exempt employees’ accrual calculations are capped at 40 hours per workweek.
- The rules state that joint employers are responsible, both individually and jointly, for compliance with all applicable provisions of the Ordinance. The rules note that joint employment can occur in a variety of situations, such as when an employer uses a temporary staffing agency, a PEO, or another entity that serves the same or a similar function.
- The rules make clear that employers may take disciplinary action for misuse of paid sick leave and provide examples of such misuse, such as a pattern of taking paid sick leave on or adjacent to the weekend, holiday, or vacation, when other leave has been denied, or when the employee is scheduled to work an undesirable shift or perform undesirable duties.
- The rules clarify that when an employee needs to use paid sick leave to care for a family member whose “place of care” has been closed, “place of care” includes informal childcare arrangements such as babysitters and family and friends who take care of children and have become unavailable.
- The rules provide that failing to transfer accrued and unused leave balances to a successor employer constitutes a violation of the Ordinance, and the original and successor employer are individually and jointly liable for the violation.
If you have any questions about navigating the latest developments in the labor and employment landscape, please contact Kristin Michaels or your Neal Gerber Eisenberg attorney.
This alert is a monthly labor and employment legal update from Neal Gerber & Eisenberg’s Labor & Employment team. Our practice group partners with employers of all sizes to help anticipate, manage, and develop practical solutions to labor and employment issues at both the national and local levels.
The content above is based on information current at the time of its publication and may not reflect the most recent developments or guidance. Neal, Gerber & Eisenberg LLP provides this content for general informational purposes only. It does not constitute legal advice, and does not create an attorney-client relationship. You should seek advice from professional advisers with respect to your particular circumstances.
