SB3052 104TH GENERAL ASSEMBLY

LRB104 17908 SPS 31344 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3052

Introduced 1/28/2026, by Sen. Lakesia Collins

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.1038 new

Creates the Secure Jobs Act. Establishes a framework for employee discipline and discharge. Prohibits the unjust discharge of an employee. Contains provisions concerning factors to be considered when determining whether an employee has been discharged for just cause and the conditions that allow for a discharge based on bona fide economic reasons. Requires employers to use progressive discipline measures. Limits the use of electronic monitoring. Provides for severance pay. Directs the Department of Labor to adopt rules and administer the Act. Provides statutory remedies for wrongfully discharged employees and authorizes the recovery of damages. Creates the Wrongful Discharge Enforcement Fund as a special fund in the State treasury. Effective January 1, 2027.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Secure Jobs Act.

Section 5. Definitions. In this Act:

"Benefits" means the cash value of any employer-paid vacation leave, sick leave, medical insurance plan, disability insurance plan, life insurance plan, annuity, and pension benefit plan in effect on the date of discharge.

"Constructive discharge" means the voluntary termination of employment by an employee because of a situation created by an act or omission of the employer that an objective, reasonable person would find so intolerable that voluntary termination is the only reasonable alternative.

"Day or temporary laborer", "day and temporary labor services agency", and "third party client" have the meaning ascribed to those terms under Section 5 of the Day and Temporary Labor Services Act.

"Department" means the Department of Labor.

"Discharge" means any cessation of employment, including constructive discharge, indefinite suspension, layoff, or reduction in hours.

"Egregious misconduct" means deliberate or grossly negligent conduct that:

(1) endangers the safety or well-being of the individual, co-workers, customers, or other persons, including discrimination against, harassment of, or causing physical or emotional harm to co-workers, customers, or other persons;

(2) causes serious damage to the employer's or customers' property or business interests, including, but not limited to, theft; or

(3) involves grossly inappropriate behavior, such as working under the influence of intoxicants or controlled substances.

"Electronic monitoring" means the collection of information concerning worker activities, communications, actions, biometric information, as that term is defined in Section 10 of the Biometric Information Privacy Act, or behaviors by electronic means including, but not limited to, video or audio surveillance, electronic work pace tracking, and other means.

"Employ" means to suffer or permit to work.

"Employee" has the meaning given that term in Section 2 of the Illinois Wage Payment and Collection Act, and also includes a "day or temporary laborer" but does not include a casual employee who performs work in or around a private home that is irregular in nature. A person may be an employee of 2 or more employers at the same time. "Employee" does not include supervisors or persons who hold elective office.

"Employer" has the meaning given that term in Section 2 of the Illinois Wage Payment and Collection Act, and also includes a "third party client" and a "day and temporary labor services agency". More than one entity may be the employer of an employee, including in circumstances where one entity controls, is controlled by, or is under common control with another employer, or where one entity exerts control over the operations of another employer. An employer-employee relationship is presumed to exist when an individual performs labor or services for an employer. The party asserting that an individual is not an employee must establish by a preponderance of the evidence that the individual is an independent contractor.

"Just cause" means:

(1) an employee's failure to satisfactorily perform his or her job duties or to comply with employer policies;

(2) an employee's egregious misconduct; or

(3) bona fide economic reasons.

"Progressive discipline" means an employer's disciplinary system that provides a graduated range of reasonable responses to an employee's failure to satisfactorily perform his or her job duties or comply with employer policies, with the disciplinary measures ranging from mild to severe, depending on the frequency and degree of the failure, and the employee being afforded a reasonable period of time to address concerns.

"Reduction in hours" means a reduction in an employee's hours of work totaling at least 15% of the employee's average weekly work hours.

"Relator" means a current or former employee, contractor, subcontractor, or employee of a contractor or subcontractor of an alleged violator of this Act, regardless of whether that person has received full or partial relief, who seeks relief through a public enforcement action brought under this Act.

"Representative organization" means a nonprofit or labor organization selected by a relator to initiate a public enforcement action on the relator's behalf.

"Severance pay" has the meaning of that term as described in Section 50.

"Short-term position" means employment pursuant to a written contract that specifies that the position is to end after a specified period of time, not to exceed 6 months, where the employer can show that the work or need in question is expected to end, such as in the case of a seasonal job or a job to perform a specific project.

Section 10. Prohibition against discharge without just cause.

(a) An employer shall not discharge an employee without just cause. Just cause may not be based on off-duty conduct unless there is a demonstrable and material nexus between the conduct and the employee's job performance or the employer's legitimate business interests.

(b) The employer shall within 3 days provide a written explanation to any discharged employee of the specific reasons for the discharge. In determining whether an employer had just cause for discharge, a fact finder may not consider any reasons not included in the written explanation. If an employer fails to provide a written explanation to a discharged employee, the discharge shall not be deemed to be based on just cause. All information and judgments that the employer considered in making the determination shall be made available to the employee or his or her representative.

(c) The employer shall bear the burden of proving just cause including, if applicable, that the employer followed progressive discipline, by a preponderance of non-hearsay evidence in any proceeding brought under this Act.

(d) Any business that employs 50 or fewer employees may maintain a 90-day employment probationary period during which time the employment may be terminated at the will of either the employer or the employee for any reason or for no reason with notice given to the other party.

Section 15. Factors to be considered. In determining whether an employee has been discharged for just cause for failure to satisfactorily perform job duties or for failure to comply with employer policies, the fact finder shall consider, in addition to any other relevant factors, whether:

(1) the employee knew or should have known of his or her job duties or of the employer's policy;

(2) the employer provided relevant and adequate training to the employee;

(3) the employer's policy was reasonable and applied consistently;

(4) the employer undertook a thorough, fair and objective investigation; and

(5) the employer used progressive discipline.

Section 20. Discharge for failure to satisfactorily perform job duties. A discharge for failure to satisfactorily perform job duties or comply with employer policies shall not be deemed to be based on just cause unless the employer has used progressive discipline. If that the time period between a first warning or discipline and termination shall be not less than 15 days, and the employer may not rely on a warning or discipline issued more than one year in the past to justify a discharge.

Section 25. Progressive discipline. Under progressive discipline, an employer may discharge an employee immediately for egregious misconduct. A finding of misconduct for purposes of unemployment insurance eligibility shall not necessarily constitute serious misconduct for purposes of this Act. An employee discharged for egregious misconduct shall not be entitled to severance pay.

Section 30. Discharge based on bona fide economic reasons.

A discharge shall not be deemed to be based on bona fide economic reasons unless the following conditions are met:

(1) the discharge results from a reduction in production, sales, services, profit, or funding of the employer, or technological or organizational changes in the employer's operations that necessitate full or partial reduction of the employer's operations;

(2) the employees or groups of employees to be discharged are identified using broadly applicable criteria that do not appear to target individuals; and

(3) the bona fide economic reasons justifying the discharge were specified in writing to the employee at the time of the discharge and are supported by the employer's records.

A discharge shall be presumed not to be based on bona fide economic reasons where the employer hired or hires another employee to perform substantially the same work within 90 days before or after the discharge. Elimination of staff redundancy created by a merger or acquisition shall not be deemed a bona fide economic reason for discharge of employees.

Section 35. Employee actions that do not constitute just cause for termination. In no event shall any of the following actions by an employee constitute just cause for termination:

(1) an employee's communication about workplace practices or policies to any person, including to an employer, an employer's agent, other employees, a government agency, or the public, including through print, online, social media, or any other media; or

(2) an employee's refusal to work under conditions that the employee reasonably believes would expose him or her, other employees, or the public to an unreasonable health or safety risk.

An employer shall not retaliate against any employee or other person for the conduct. Notwithstanding any other provision of law, the conduct shall constitute protected conduct and may not be contractually prohibited, or subject to civil or criminal sanction or liability.

Section 40. Employer assessments. An employer must conduct its own assessment of an employee, and may not rely on data gathered through electronic monitoring in discharging or disciplining an employee. The employment decisions must be made based on human-provided information sources, such as supervisors' assessments and documentation or consulting co-workers. An employer must disclose in advance to employees any electronic monitoring or data collection at a workplace, disclose the purposes for which the data will be used, and provide employees meaningful opportunities to challenge any electronic monitoring or data systems. However, data gathered through electronic monitoring may be used in the following circumstances: for non-employment-related purposes; for discharging or disciplining an employee in cases of egregious misconduct or involving threats to the health or safety of other persons; or where required by State or federal law. Information on employee tardiness or absenteeism from electronic time-keeping systems that are used to measure employee work shifts for payroll purposes may be considered for purposes of employee discharge and discipline.

Section 45. Discharge; short-term position. Discharge at the end of a short-term position shall not require a showing of just cause and shall not entitle an employee to severance pay. A position shall not be deemed to be a short-term position where the employer hires another employee, including another employee who is a day or temporary laborer, to perform substantially the same work within 90 days before or after the discharge. However, discharge prior to the end of the term of a short-term position shall require a showing of just cause and shall entitle the employee to severance pay.

Section 50. Severance pay. An employee shall accrue an entitlement to one hour of severance pay for every 12.5 hours worked during his or her first 2,080 hours of employment, and one hour for every 50 hours worked thereafter. Within 14 days after discharge, the employer shall pay the employee his or her accrued severance pay, calculated based on the number of hours accrued multiplied by the employee's rate of pay upon discharge. However, an employee who is discharged at the end of a short-term position shall not be entitled to severance pay. Severance pay shall be exclusive of final compensation due an employee upon separation, as provided for under Section 2 of the Illinois Wage Payment and Collection Act. For purposes of determining an employee's hours of employment, tenure, or seniority, multiple periods worked for the employer, including through a day and temporary services agency, and any time worked for a predecessor employer shall be aggregated.

Section 55. Employment through day and temporary labor services agencies.

(a) If an employee is a day or temporary laborer who has worked 100 hours or more for a single third party client, the third party client shall be deemed his or her employer, shall become subject to the protections of this Act as regards the employee, and may not discharge the employee without just cause. However, if the employee's employment with the third party client qualifies as a short-term position, then a showing of just cause for discharge at the end of the position's defined term shall not be required, nor shall payment of severance pay at the end of the position's defined term be required. In such a case the third party client must show that all of the criteria and conditions for a short-term position in Section 45 and in the definition of short-term position are satisfied in order for the employment of the day or temporary laborer to qualify as a short-term position.

(b) If an employee is a day or temporary laborer who has not worked 100 hours or more for a single third party client, but has worked 100 hours or more for a temporary labor services agency, aggregating all hours worked for multiple third party clients, the employee shall become subject to more limited protection under this Act. The employee shall be given priority by the temporary labor services agency for future work assignments over employees who have not worked 100 hours or more for the agency. When the employee is discharged by the day and temporary labor services agency, the employee shall be entitled to payment of severance pay, as determined under Section 50. The employee shall be deemed discharged if he or she receives no work assignment offers from the temporary labor services agency for a period of 21 days or more. However, if the employee's employment with the temporary labor services agency ends in order for the employee to commence direct employment with a third party client, then no payment of severance pay shall be required.

(c) Employers that are third party clients and employers that are day and temporary labor services agencies shall be jointly and severally responsible with one another for compliance with the Act's requirements.

Section 60. Collective bargaining agreement exemption. The requirements of this Act shall not apply to employees who are covered by a valid collective bargaining agreement.

Section 65. Notice and posting of rights.

(a) The Department shall publish and make available notices informing employees of their rights protected under this Act. Employers shall post the notices in a conspicuous location in the workplace or at any job site, and shall give a notice to each employee at the time of hiring and on an annual basis. The notices shall be made available in a downloadable format on the Department's website in English, Spanish, Polish, Mandarin, and Cantonese.

(b) Every employer shall conspicuously post at any workplace or job site where any employee works the notices described in subsection (a) that apply to the particular workplace or job site. The notices shall be in English and any language spoken as a primary language by at least 5% of the employees at that location if the Department has made the notice available in that language.

Section 70. Recordkeeping.

(a) Employers shall retain records documenting their compliance with the applicable requirements of this Act. In addition, day and temporary labor services agencies shall maintain records of each individual day or temporary laborer's start date with the day and temporary labor services agency and the dates on which that laborer was placed with a third party client. Employers shall retain the records for a period of 3 years and shall allow the Department access to the records and other information, in accordance with applicable law and with appropriate notice, in furtherance of an investigation conducted in accordance with this Act.

(b) An employer's failure to maintain, retain, or produce a record or other information required to be maintained by this Section relevant to a material fact alleged by an employee in a complaint brought under this Section or requested by the Department pursuant to an investigation, creates a rebuttable presumption that the fact is true.

Section 75. Administrative implementation and enforcement.

(a) The Department shall administer and enforce the provisions of this Act and shall, within 120 days after its effective date, adopt rules necessary to administer and enforce the provisions of this Act. The rules shall include the procedures for investigations and hearings under this Act. The adoption, amendment, or rescission of rules shall be in conformity with the requirements of the Illinois Administrative Procedure Act.

(b) An aggrieved employee or his or her duly authorized representative may file a complaint with the Department regarding violations by an employer of this Act or of any implementing rules. Upon receiving a complaint or on its own initiative, the Department shall investigate potential violations, make a determination whether a violation has occurred, and take appropriate action to enforce the provisions of this Act and any implementing rules.

(c) If an employer is found by the Department to have violated this Act or any rules adopted under this Act, the Department shall order the following, in addition to any other remedy provided by law:

(1) In the case of unlawful discharge or unlawful electronic monitoring, actual and liquidated damages payable to each aggrieved worker equal to, at the aggrieved party's election, $10,000 or 3 times the actual damages including, but not limited to, unpaid wages, benefits, other remuneration owed, and compensation for emotional pain, suffering, inconvenience, and mental anguish, unless an adjudicator finds that mitigating circumstances are present, in which case the adjudicator may order that the preceding liquidated damages amount be reduced as circumstances make appropriate, as well as reinstatement, restoration of hours, other injunctive relief (including to rectify conditions that led to constructive discharge), punitive damages, and other remedies as may be appropriate.

(2) In the case of discharge where severance pay was not provided, payment of severance pay together with an additional 2 times that amount as liquidated damages, and other remedies as may be appropriate including punitive damages.

(3) In the case of failure to provide a timely written explanation for a discharge, injunctive relief and liquidated damages in an amount equal to $5,000, unless an adjudicator finds that mitigating circumstances are present, in which case the adjudicator may order that the preceding liquidated damage amount be reduced as circumstances make appropriate, and other remedies as may be appropriate, including punitive damages.

(4) Payment of a further sum to the Department as a civil penalty in an amount of $10,000 for unlawful discharge in violation of this Act or unlawful electronic monitoring, in an amount of $5,000 for failure to provide a timely written explanation for a discharge, or in an amount of $1,000 for other violations of this Act, including the Act's recordkeeping requirements or failure to produce records requested in an investigation. However, if an adjudicator finds that mitigating circumstances are present, the adjudicator may order that the preceding civil penalty amounts be reduced as circumstances make appropriate. The civil penalties imposed in accordance with this Section shall be imposed on a per employee and per instance basis for each violation.

(5) Payment of the complainant's reasonable attorneys' fees, expert fees, and other costs. For the purposes of this provision, a complainant shall be deemed to have prevailed and entitled to an award of fees and costs if commencement of a complaint has acted as a catalyst to effect policy change on the part of the respondent, regardless of whether that change has been implemented voluntarily, as a result of a settlement, or as a result of a judgment in the party's favor.

(6) In assessing an appropriate remedy, due consideration shall be given to the gravity of the violation, the history of previous violations, and the good faith of the employer.

(7) All amounts specified in this Act shall be updated annually to keep pace with the rising cost of living by increasing each amount in proportion to the increase over the most recent 12-month period for which data are available in the value of the Consumer Price Index for All Urban Consumers (CPI-U), as calculated by the Bureau of Labor Statistics of the United States Department of Labor, and rounding the new amounts to the nearest multiple of $5. The increased amounts shall be announced by October 1 of each year, and shall take effect on January 1.

(8) Either party may bring an administrative appeal to enforce, vacate, or modify the order, determination, or other disposition.

(9) No procedure or remedy set forth in this Section is exclusive or a prerequisite for asserting a claim for relief to enforce any rights under this Act in a court of law.

(10) Any employer who has been ordered by the Department or ordered by a court to pay unpaid backpay, front pay and benefits, severance pay, liquidated or punitive damages, or civil penalties, and who fails to seek timely review of the demand or order as provided for under this Act and who fails to comply within 15 calendar days after the demand or within 35 days after an administrative or court order is entered shall also be liable to pay a penalty to the Department of 20% of the amount found owing and a penalty to the employee of 1% per calendar day of the amount found owing for each day of delay in paying the wages to the employee. All moneys recovered as fees and civil penalties under this Act, except those owing to the affected employee, shall be deposited into the Wrongful Discharge Enforcement Fund, a special fund which is hereby created in the State treasury. Moneys in the Fund may be used only for enforcement of this Act.

Section 80. Civil action. Except as otherwise provided by law, any person claiming to be aggrieved by an employer's violation of this Act has a cause of action in any court and, upon prevailing, shall be awarded the relief specified in Section 75 and, if the court finds in favor of the plaintiff, it shall award the prevailing party, in addition to other relief, his or her reasonable attorneys' fees, expert fees, and other costs. As used in this Section, "prevailing" party includes a party whose commencement of litigation has acted as a catalyst to effect policy change on the part of the defendant, regardless of whether that change has been implemented voluntarily, as a result of a settlement, or as a result of a judgment in the party's favor. Penalties and fees under this Act may be assessed by the Department and recovered in a civil action brought by the Department in any court or in any administrative adjudicative proceeding under this Act. In any civil action or administrative adjudicative proceeding under this Act, the Department shall be represented by the Attorney General.

Section 85. Public enforcement action. A relator or representative organization may initiate a public enforcement action in any court to pursue civil penalties, injunctive relief, and declaratory relief, as specified in Section 75, on behalf of the Department, for a violation of the provisions of this Act affecting the relator and other current or former employees, according to the following procedures:

(a) The relator or representative organization shall give written notice to the Department of the specific provisions of this Act alleged to have been violated, including the facts and theories to support the alleged violation. The notice shall be given in the manner as the Department may prescribe by rule.

(b) If the Department intends to investigate the alleged violation, it shall notify the relator or representative organization of its decision within 65 calendar days after the postmark date of the notice. Within 60 calendar days after that decision, the Department may investigate the alleged violation and take any enforcement action authorized by law. If the Department determines that additional time is necessary to complete the investigation, it may extend the time by not more than 60 additional calendar days and shall notify the relator or representative organization of the extension.

(c) Notwithstanding any other provision of law, a public enforcement action brought under this Act must be commenced within the limitations period specified in Section 90. The statute of limitations for bringing a public enforcement action under this Act shall be tolled from the date a relator or representative organization files a notice under this Section with the Department, or the Department commences an investigation, whichever is earlier.

(d) The relator or representative organization may commence a civil action under this Act if the Department determines that no enforcement action will be taken, or if no enforcement action is taken by the Department within the time limits prescribed.

(e) The Department may intervene in an action brought under this Act and proceed with any and all claims in the action as of right within 30 days after the filing of the action, or for good cause, as determined by the court, at any time after the 30-day period after the filing of the action.

(f) Civil penalties recovered in a public enforcement action brought under this Act shall be distributed as follows:

(1) If the Department does not intervene in the action, 60% to the Department, and 40% to the relator or representative organization, to be distributed to the employees affected by the violation, including a service award that reflects the burdens and risks assumed by the employee or representative organization in prosecuting the action.

(2) If the Department does intervene in the action, 70% to the Department, and 30% to the relator or representative organization, the latter of which shall be distributed to the employees affected by the violation, including a service award that reflects the burdens and risks assumed by the employee or representative organization in prosecuting the action.

(3) The share of penalties recovered for the Department under this Act shall be used solely to support the Department's education and enforcement activities relating to this Act, with approximately 25% of these penalties reserved for grants to community organizations for outreach and education about employee rights under this Act.

(g) In any public enforcement action commenced under this Act, the court shall allow a prevailing relator or representative organization to recover all reasonable attorneys' fees, expert fees, and other costs. For the purposes of this provision, a "prevailing" relator or representative organization includes a relator or representative organization whose commencement of litigation has acted as a catalyst to effect policy change on the part of the defendant, regardless of whether that change has been implemented voluntarily, as a result of a settlement, or as a result of a judgment in the relator or representative organization's favor.

(h) No public enforcement action brought under this Act shall be required to meet class action certification requirements under Part 8 of Article II of the Code of Civil Procedure or Rule 23(a) of the Federal Rules of Civil Procedure.

(i) The relator or representative organization may not recover compensatory damages or back pay, or seek reinstatement, in a public enforcement action. But the filing of a public enforcement action does not preclude an employee from pursuing these remedies in another forum.

(j) The right to bring a public enforcement action under this Act shall not be impaired by any private contract.

Section 90. Limitation of actions. Notwithstanding any other provision of law, an action under this Act must be filed within 3 years after the complainant knew or should have known of the alleged violation. However, this statute of limitations period shall be tolled for the duration of any state of emergency declared by the State or by any city or county in which the action is commenced.

Section 95. Non-preemption. This Act does not preempt, limit, or otherwise affect the authority of any other unit of government to adopt laws, rules, requirements, policies, or standards providing additional employment or workplace protections.

Section 100. Violations. An employer that violates this Act is guilty of a Class A misdemeanor.

Section 105. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 900. The State Finance Act is amended by adding Section 5.1038 as follows:

(30 ILCS 105/5.1038 new)

Sec. 5.1038. The Wrongful Discharge Enforcement Fund.

Section 999. Effective date. This Act takes effect January 1, 2027.