Labor & Employment

Makes appropriations for the ordinary and contingent expenses of the Department of Employment Security for the fiscal year beginning July 1, 2026, as follows: General Funds $20,855,000; Other State Funds $6,500,000; Federal Funds $419,066,800; Total $446,421,800.

Creates the Surveillance-Based Wage Discrimination Act. Provides that a person shall not use surveillance data as part of an automated decision system to inform the individualized wage paid to an employee. Sets forth exemptions to the provisions. Provides that the Attorney General shall enforce the Act. Sets forth provisions concerning private rights of action and penalties for violations.

Amends the Illinois Human Rights Act. Makes it a civil rights violation, unless required by applicable security regulations established by the federal government or the State, for an employer to include a statement in a job advertisement, posting, application, or other material that an applicant must have a driver's license unless both of the following conditions are satisfied: (1) the employer reasonably expects driving to be one of the bona fide job functions for the position; and (2) the employer reasonably believes that using an alternative form of transportation is not comparable in travel time or cost to the employer. Provides that an alternative form of transportation includes, but is not limited to, any of the following: using a taxi or ride hailing service, carpooling, bicycling, walking, or public transportation

Amends the Hospital Licensing Act. Provides that a hospital licensed under the Act shall not charge a covered hospital employee more than 10% of the total health insurance premium cost. Provides that any agreement permitting a charge to a covered hospital employee in excess of 10% of the total health insurance premium cost shall be deemed invalid, void, and unenforceable. Provides that a hospital in violation of those provisions shall pay a civil penalty of $500 to the Department of Public Health for each impacted covered hospital employee.

Amends the Employment of Teachers Article of the School Code. Provides that beginning with continuing education coursework commenced on or after July 1, 2026, a school district, special education cooperative, or other public educational employer may recognize graduate-level continuing education coursework for purposes of salary advancement or lane changes only if the continuing education coursework meets specified requirements. Provides that nothing in the provisions impairs the ability of the parties to a collective bargaining agreement to negotiate salary schedules or compensation structures, as long as any graduate-level continuing education coursework recognized for salary advancement or lane changes complies with those specified requirements. Allows the State Board of Education, in consultation with the Board of Higher Education, to adopt rules as necessary to implement the provisions. Effective July 1, 2026.

Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2026, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately.

Amends the Mental Health and Developmental Disabilities Administrative Act. Requires the Department of Human Services to file an amendment to the Home and Community-Based Services Waiver Program for Adults with Developmental Disabilities that shall include an increase in the rate methodology sufficient to provide for a wage rate of 150% of the statewide, regional, or local minimum wage for services delivered on or after January 1, 2027, for all direct support personnel and all other frontline personnel who are not subject to the Bureau of Labor Statistics' average wage increases and who work in residential and community day services settings. Provides that for services delivered on or after January 1, 2027, the rates shall include adjustments to employment-related expenses as defined by rule by the Department. Requires the Department to adopt rules, including emergency rules, to implement the rate increases. Contains provisions on benchmark rates for therapy and counseling for adults with intellectual and developmental disabilities; tiered rates for community day services; community integration supports for community day services; and benchmark rates for CILA transportation cost and for the supported employment program for adults with intellectual and developmental disabilities. Amends the Medical Assistance Article of the Illinois Public Aid Code. Requires the Department of Healthcare and Family Services to submit a Title XIX State Plan amendment to the federal Centers for Medicare and Medicaid Services that shall include an increase in the rate methodology sufficient to provide for a wage rate of 150% of the statewide, regional, or local minimum wage for services delivered on or after January 1, 2027, for all direct support personnel and all other frontline personnel at ID/DD and MC/DD facilities. Provides that the State Plan amendment shall provide wage increases for all residential non-executive direct care staff. Effective immediately.

Amends the Smart Start Illinois Act. Expands eligibility under the Smart Start Child Care Workforce Compensation Program to Head Start and Early Head Start programs.

Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that, if the payment of a retirement annuity is made to an annuitant more than one month after that retirement annuity payment became payable, then the Fund shall pay interest to the annuitant in an amount equal to 6% of that payment of the retirement annuity. Amends the Illinois Insurance Code. In provisions concerning the municipal employee's continuance privilege, provides that if an employee has elected to have the monthly premium deducted by the Illinois Municipal Retirement Fund from the employee's monthly pension payment, then the Illinois Municipal Retirement Fund shall promptly remit the premium payments to the insurance company, regardless of whether the employee's monthly pension payment has been paid to the employee. Amends the State Mandates Act to require implementation without reimbursement.

Amends the Illinois Power Agency Act. In provisions concerning colocation of photovoltaic community renewable generation projects, changes references from "community renewable generation project" to "photovoltaic community renewable generation project" and "community solar projects" to "photovoltaic community renewable generation projects". Requires a project labor agreement for the new construction of certain facilities related to community-driven community solar projects. In a provision applying prevailing wage requirements to facilities for which a renewable energy credit delivery contract is signed, removes an exception for multi-family residential buildings with aggregate geothermal system tonnage, including colocated projects, of no more than 29 tons. Amends the Energy Transition Act. Provides that the Department of Corrections and the Department of Commerce and Economic Opportunity shall jointly develop activities to support the recruitment of eligible candidates to the Illinois Climate Works Preapprenticeship Program. Provides that the activities shall include coordinating on sharing with community-based providers the contact information of persons preparing to be released into the community, including names, addresses, phone numbers, and email addresses, if the person preparing to be released consents to the person's contact information being shared. Makes other changes.