When was the last time your employee handbook got a thorough review? If you’re like most Illinois businesses, it’s been a while. Maybe you borrowed from a template years ago and made updates as they seemed necessary. Maybe you haven’t touched it since your last HR manager left.
Here’s the problem: Illinois employment law has changed significantly in recent years, and continues to change. Policies that were compliant three years ago may not be compliant today. And an outdated handbook isn’t just a compliance risk—it can become Exhibit A in employment litigation.
These five policy areas deserve immediate attention.
POLICY #1: BIOMETRIC INFORMATION PRIVACY ACT (BIPA) COMPLIANCE
Illinois BIPA remains one of the most consequential privacy laws in the country, and recent court decisions have only increased the stakes.
What’s changed: Recent rulings have allowed damages to be calculated per violation rather than per person, potentially multiplying exposure. The definition of what constitutes “biometric information” continues to expand.
What to update: If you use fingerprint scanners, facial recognition, or any biometric technology—even through third-party vendors—your handbook needs a clear, compliant disclosure and consent policy. The consent must be obtained before collection, must be in writing, and must specifically identify the information being collected and its purpose.
The risk of inaction: BIPA claims now routinely result in multi-million dollar settlements and verdicts. Individual violations can mean thousands of dollars per person per violation.
POLICY #2: ILLINOIS PAY TRANSPARENCY ACT COMPLIANCE
Illinois joined the growing number of states requiring pay transparency, with requirements that have evolved since initial passage.
What’s changed: Employers must disclose pay scales and benefits in job postings. The requirements apply to positions that will be performed at least partially in Illinois or report to an Illinois supervisor.
What to update: Your handbook should address how compensation is determined, reference your commitment to pay equity, and ensure your internal practices align with what you’re disclosing externally. Your job posting processes need to incorporate the required disclosures.
The risk of inaction: Beyond regulatory penalties, inconsistencies between what you post and what you practice can become ammunition in pay discrimination claims.
POLICY #3: PAID LEAVE REQUIREMENTS
Illinois and Chicago have implemented paid leave requirements that go beyond federal minimums.
What’s changed: The Illinois Paid Leave for All Workers Act requires employers to provide paid leave to most employees. Chicago has additional requirements. The interaction between these laws and other leave policies can be complex.
What to update: Your handbook needs to clearly state leave entitlements, accrual rates, usage requirements, and carryover provisions. Policies must comply with the most generous applicable requirement—which may vary by where your employees work.
The risk of inaction: Leave policy errors can result in back pay liability, penalties, and a lot of time-consuming remediation.
POLICY #4: NON-COMPETE AND NON-SOLICITATION LIMITATIONS
Illinois has significantly restricted the use of non-compete agreements, and more restrictions may be coming.
What’s changed: The Illinois Freedom to Work Act prohibits non-competes for employees earning under specified thresholds and imposes procedural requirements for enforceable agreements. Federal restrictions are also evolving.
What to update: Any non-compete or non-solicitation provisions in your handbook need to be reviewed for compliance with current thresholds and requirements. Provisions that were enforceable when drafted may no longer be valid.
The risk of inaction: Unenforceable restrictive covenants don’t just fail to protect you—they can expose you to liability for maintaining illegal policies.
POLICY #5: AI AND MONITORING POLICIES
This is the emerging frontier of employment policy, and most handbooks haven’t caught up.
What’s changed: Illinois has restrictions on AI in hiring decisions. Federal and state agencies are increasingly scrutinizing electronic monitoring of employees. Remote work has made monitoring policies more complex and more important.
What to update: If you use AI tools in hiring or management, you need policies that ensure compliance with applicable restrictions. If you monitor employee communications, computer use, or location, you need clear disclosure. Lack of policy clarity creates both legal risk and employee relations problems.
The risk of inaction: AI-related employment claims are emerging rapidly. Better to have policies in place before you’re responding to complaints.
BEYOND COMPLIANCE: USING POLICIES STRATEGICALLY
A good employee handbook isn’t just about legal compliance—it’s about setting clear expectations, documenting your culture, and creating a foundation for fair, consistent management.
When you review your handbook, don’t just ask “Is this legal?” Ask, “Does this reflect who we are and how we want to manage?” Ask, “Will this help managers make good decisions?” Ask, “Does this position serve us well if we ever face a claim?”
THE HANDBOOK REVIEW PROCESS
A thorough handbook review involves several steps:
Inventory current policies and identify gaps against current legal requirements. Review existing language for outdated provisions, inconsistencies, and areas of legal risk. Draft updated language that meets legal requirements while reflecting your culture and practical operations. Train managers on key provisions and ensure the handbook is properly distributed and acknowledged.
This isn’t a once-and-done project—it’s an ongoing responsibility. Legal requirements change. Your business changes. Your handbook should keep pace.
The Outside GC model is ideal for this kind of work: comprehensive enough to require real expertise, ongoing enough to require a partner who knows your business, but not substantial enough to require a full-time hire.
Let’s talk about getting your handbook current.
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