New Illinois laws for 2026 are bringing major changes to healthcare, workplace rights, housing protections, and public safety across the state. As we head into the new year, Illinois residents will see hundreds of laws take effect on January 1st. Governor JB Pritzker has signed legislation that will reshape everything from prescription drug costs to AI discrimination protections, tenant rights to criminal justice reforms.
At Disparti Law Group, we’ve been following these developments closely because they directly impact our clients and the Chicago community. This complete guide breaks down what’s changing and, more importantly, what these new laws mean for you and your family.
Your Prescription Costs Are About to Get More Manageable
If you’ve been watching your medication costs climb year after year, there’s finally some relief on the horizon. NBC Chicago reports that insurance policies renewed or issued in 2026 will include several new cost protections.
Inhalers for asthma and COPD patients will finally have out-of-pocket cost caps. No more choosing between your inhaler and other necessities—insurance companies have to limit what you pay.
EpiPens are getting price limits too. Twin-packs of epinephrine auto-injectors will be capped at $60. For families with kids who have severe allergies, that’s a game-changer.
And here’s a big one: when your pharmacy tells you the generic version of your medication is out of stock, your insurance can’t just shrug and leave you holding the bill for the expensive brand-name version. Senate Bill 2672 closes that loophole. Generic drugs make up about 90% of prescriptions filled in the U.S., so supply chain issues have left a lot of people in tough spots.
Birth Control Access Without the Doctor’s Visit
House Bill 3489 is changing reproductive healthcare access in a practical way. Starting in January, pharmacists can dispense contraceptives—including emergency contraceptives like Plan B—without you needing to schedule a doctor’s appointment first.
Need emergency contraception? Walk into your Chicago pharmacy and get it the same day. No appointment, no waiting.
New Health Screenings Your Insurance Will Cover
Senate Bill 773 adds coverage for yearly menopause health visits for women 45 and older. It’s about time this aspect of women’s healthcare got the attention it deserves.
There’s also a new requirement for insurance to cover peripheral artery disease screening when it’s medically necessary. ABC7 Chicago notes that cardiologists and medical experts believe catching PAD early could help prevent many unnecessary amputations each year.
Plus, Senate Bill 1238 expands coverage for non-opioid pain management options. If you’re dealing with chronic pain, you’ll have access to safer alternatives than relying solely on prescription opioids.
Hospitals Have to Tell You About Hidden Fees Now
Ever gotten a hospital bill with mysterious “facility fees” that nobody mentioned beforehand? The Health Care Facility Fee Transparency Act is putting a stop to that. Hospitals have to disclose these charges—which cover things like using the hospital’s space, equipment, and administrative services—before you get treated. At least you’ll know what you’re getting into.
Workplace Rights & Employment Laws
Illinois Is Leading on AI Discrimination (Yes, Really)
Here’s something that’s making Illinois stand out nationally: we’re becoming one of the first states to specifically regulate how employers can use artificial intelligence in hiring and employment decisions.
House Bill 3773 amends the Illinois Human Rights Act to make it a civil rights violation when employers use AI tools that discriminate based on protected characteristics—race, gender, age, disability, you name it.
The practical implications?
If you’re applying for jobs in Chicago and some AI screening tool is filtering out qualified candidates from certain neighborhoods or demographic groups, that’s now actionable discrimination. Employers have to notify you when they’re using AI for hiring, promotions, discipline, or firing decisions. They also have to explain what the AI is evaluating.
And get this—employers can’t use zip codes as a proxy for race or ethnicity. We all know certain zip codes correlate with demographics, and that loophole is now closed.
The Illinois Department of Human Rights will be enforcing these new protections. At Disparti Law Group, we’re already preparing to hold employers accountable when they hide behind algorithms.
Your Employment Agreement Just Got Fairer
Illinois is cracking down on sneaky contract clauses that employers have used to limit workers’ rights. Recent reports show that the expanded Illinois Workplace Transparency Act now voids any employment agreement clauses that:
- Try to shorten how long you have to bring a claim
- Force Illinois employees to use another state’s laws
- Make you travel out of state to resolve disputes
- Prevent you from talking with coworkers about workplace issues
There’s another change that’s important: if your employer wants you to sign a confidentiality agreement as part of a separation or settlement, they have to give you something of value beyond just your regular severance pay. No more using standard severance as leverage for your silence about workplace problems.
Nursing Moms, You’re Getting Paid for Pump Breaks
The Illinois Nursing Mothers in the Workplace Act has been around, but now it’s got teeth. Starting January 1st, the time you spend expressing breast milk at work has to be paid time.
Your employer can’t make you use your lunch break or PTO, and they definitely can’t dock your pay. For working moms heading back after maternity leave, this recognizes what should have been obvious all along—nursing is a health necessity, not a personal convenience.
When Your Baby Is in the NICU, Your Job Shouldn’t Be in Jeopardy
The new Family Neonatal Intensive Care Leave Act provides unpaid leave specifically for parents whose newborns need intensive care:
If your employer has 16-50 employees, you get up to 10 days. If they have 50 or more, you get up to 20 days. You can take it intermittently—a day here, a day there—as your baby’s care requires. And this is separate from FMLA leave.
Honestly, if you have a newborn in the NICU, being at their bedside shouldn’t require you to risk your job.
Military Family Leave Gets an Update
The law formerly known as the Illinois Military Leave Act has been renamed and expanded. Employers with 50+ employees now have to give you up to 8 hours a month (40 hours a year) to participate in military family activities. This recognizes that supporting service members is a family effort.
Important Protections for Domestic Violence Survivors
This one could literally save lives. The Illinois Victims’ Economic Security and Safety Act now protects employees who use work-issued phones, computers, or tablets to record domestic violence, sexual violence, or other crimes.
Your employer can’t:
- Retaliate against you for using work equipment to document abuse
- Take away your work phone or computer because you used it for this purpose
- Block you from accessing photos, videos, or recordings you’ve stored on work devices
If you’re in a dangerous situation and your work phone is the only device you have access to, you can use it to protect yourself.
How Discrimination Cases Are Investigated Is Changing
The Illinois Department of Human Rights won’t automatically hold fact-finding conferences anymore for discrimination charges. Legal analysts note that conferences can still happen if both parties request one within 90 days, or if IDHR decides it would help.
What this means in practice: written position statements and supporting documents are going to carry more weight than before. There are also new civil penalties ranging from $16,000 to $70,000 that can be imposed based on how many past violations an employer has.
Housing & Tenant Protections
Dealing with Squatters Just Got Faster
If you’re a property owner who’s dealt with squatters, you know how frustrating the process has been. ABC7 Chicago explains that the new “Squatter Bill” lets law enforcement remove squatters more quickly, bypassing what could previously drag on for months.
Under the old system, squatters got to stay in your property while the court case played out. Come back from a long trip to find someone living in your Chicago home? You could be looking at a lengthy legal battle before you could even get back in. That’s changing.
Critical Info for Domestic Violence Survivors on Every Lease
Every residential lease or renewal in Illinois now has to include specific information about housing rights for domestic violence and sexual assault survivors—right there on page one.
This legislation came out of a domestic violence law course at UIC, and it ensures that vulnerable tenants immediately see their protections under Illinois law. That includes things like early lease termination rights, protection from landlord retaliation, and the right to request lock changes.
Public Safety & Criminal Justice Reforms
No More Waiting Periods for Missing Persons Reports
Illinois just eliminated any law enforcement policy that required a waiting period before taking a missing persons report. Senate Bill 24 also requires that information gets entered into the Law Enforcement Agencies Data System immediately.
The first 24-48 hours matter enormously in missing persons cases. This could literally save lives, especially for children, elderly individuals with dementia, and potential kidnapping victims.
Cracking Down on Online Child Exploitation
The Illinois State Police Division of Criminal Investigation can now pursue online child exploitation cases anywhere in the state. The new law is modeled on Alicia’s Law, which has worked well in other states, and it:
- Speeds up investigation response times
- Closes gaps between different agencies’ jurisdictions
- Improves coordination between task forces
- Funds specialized units that track online predators
Human Trafficking Victims Can Come Forward When They’re Ready
House Bill 2602 removes the statute of limitations for forced labor, trafficking, and related offenses when the victim was under 18.
Trafficking survivors often need years—sometimes decades—to process their trauma before they’re ready to come forward. This law gives them that time.
Retired Police Dogs Get the Care They’ve Earned
House Bill 3140 sets up the Police K-9 Care Program and Fund. After spending their lives protecting Illinois communities, retired police dogs will get consistent funding for their ongoing veterinary care. It’s a small thing that makes a big difference for these four-legged first responders.
Tax Changes That Affect Your Wallet
The State Grocery Tax Is Gone (But Maybe Not Really)
The 1% state grocery tax is officially repealed under the FY2026 Budget Bill. Sounds great, right?
Well, here’s the catch: municipalities and counties can now impose their own 1% local grocery tax. The Illinois Municipal League says 656 municipalities—more than half—have already adopted it.
So check with your local government to see if you’ll actually save money on groceries or if your municipality just replaced the state tax with a local one.
Chicago-Specific Laws Taking Effect
CPS Principals Get Better Labor Protections
House Bill 297 gives Chicago Public Schools principals and assistant principals access to arbitration when collective bargaining hits an impasse. They can’t strike, and their existing employment terms stay in place during arbitration.
With 330,000+ CPS students and their families depending on school stability, avoiding labor disruptions matters.
Studying How to Make Lake Shore Drive Safer
New legislation is commissioning the Urban Transportation Center at UIC to dig into crash data and driving behavior on DuSable Lake Shore Drive. They’ll also look at whether traffic enforcement technology could help.
For one of Chicago’s busiest and most scenic roads, a data-driven approach to reducing crashes makes sense.
Frequently Asked Questions
When exactly do these laws take effect?
Most of them go live on January 1, 2026. Some provisions—particularly those involving the Illinois Department of Human Rights—have implementation timelines that extend further into 2026.
How does the AI discrimination law actually get enforced?
The Illinois Department of Human Rights handles it. If you believe you experienced AI-based discrimination, you file a charge with IDHR. Remedies can include back pay, lost benefits, hiring, promotion, reinstatement, emotional damages, and attorney’s fees.
Will my insurance definitely cover brand-name drugs during shortages?
It applies to policies renewed or issued in 2026. If you run into issues with coverage being denied, that’s when you need to push back—or get an attorney involved if necessary.
Who can take NICU leave?
Parents whose newborns are admitted to neonatal intensive care units. How much leave you get depends on your employer’s size: 10 days for 16-50 employees, 20 days for 50+ employees.
What if my employer won’t pay me for nursing mother break time?
That’s a violation of the amended Illinois Nursing Mothers in the Workplace Act. Document everything and talk to an employment attorney. We handle these kinds of workplace violations at Disparti Law Group.
How does the new squatter law actually work?
Law enforcement can now remove squatters without going through the lengthy eviction process that used to keep squatters in the property during court proceedings. It’s designed to give legitimate property owners faster access to their homes.
Can employers still use AI for hiring?
Yes, but they have to notify applicants when AI is being used and make sure it doesn’t discriminate based on protected characteristics. If you think an AI tool screened you out unfairly, you have legal options under House Bill 3773.
What are facility fees and why should I care about transparency?
Facility fees are charges for using a hospital’s space, equipment, and administrative services—separate from the actual medical treatment. People have been hit with surprise bills for years because they didn’t know these fees existed. Now hospitals have to tell you upfront.
How These Laws Connect to Personal Injury and Workers’ Rights
At Disparti Law Group, we represent Chicago residents dealing with personal injury and employment cases. These new laws strengthen several areas that matter to our practice:
If you’re dealing with workplace issues: The AI discrimination protections and expanded Workplace Transparency Act give us more tools to hold employers accountable. Whether it’s AI tools unfairly impacting your job prospects or employers using contract tricks to limit your rights, we can help.
For injury victims managing recovery: The new prescription drug coverage requirements matter when you’re trying to manage pain and recovery after an injury. If your insurance company denies coverage for necessary medications, these laws provide stronger grounds for challenging those denials.
Domestic violence survivors: The enhanced workplace protections intersect with personal injury law when victims are injured by abusers. Being able to document violence with work equipment could provide critical evidence.
Missing persons and trafficking cases: The elimination of waiting periods and extended statutes of limitations help ensure justice for victims and families dealing with these crimes.
Disparti Law Group Can Help
These new Illinois laws represent real progress in protecting workers, tenants, healthcare consumers, and vulnerable populations. But here’s the thing—knowing your rights only matters if you can actually enforce them.
Whether you’re dealing with a personal injury claim, workplace discrimination, an insurance company stonewalling you on coverage, or questions about how these protections apply to your specific situation, having experienced legal counsel makes all the difference.
The law keeps evolving, and 2026 brings changes that will reshape daily life for many Illinois residents. At Disparti Law Group, we stay on top of these changes so we can better serve our clients and community.
If you believe your rights have been violated under any of these new laws, or if you’ve been injured because of someone else’s negligence, don’t wait. Legal claims have time limits, and acting quickly often means a stronger case.
Contact Disparti Law Group today for a free consultation with an experienced Chicago attorney who understands both the law and what you’re going through.
