SPRINGFIELD, Ill. (Chambana Today) — When the clock strikes midnight on January 1, 2026, Illinois will usher in a wide-ranging slate of new laws that reshape the workplace, consumer protections, health care coverage, and even major corporate tax policy. Gov. JB Pritzker signed the laws earlier this year, and many are expected to have significant impacts on employees, families, and businesses across the state.

One of the most closely watched changes is new regulation of artificial intelligence in employment decisions. Under House Bill 3773, employers may no longer use AI tools that produce discriminatory outcomes involving protected characteristics such as race, gender, age, or disability. Employers must also notify workers when AI is used and explain what is being evaluated. Critics argue the rules may increase litigation, while supporters say they guard against hidden algorithmic bias. The Illinois Department of Human Rights will oversee enforcement and is expected to issue formal guidance before the law takes effect.

Another major change is the elimination of the state’s 1% grocery tax. While consumers are likely to see savings at checkout, the law allows counties and municipalities to adopt their own 1% grocery tax if approved by October 1, 2025. More than 650 municipalities have already opted in, according to the Illinois Municipal League.

In the workplace, new protections arrive for nursing mothers. Senate Bill 212 requires employers to pay workers for break time used to express breast milk during the first year after childbirth. These breaks were previously unpaid, and employers may no longer require employees to substitute paid leave.

Health care also sees sweeping changes. New laws require insurers to cover brand-name medications when generic versions are in shortage, cap out-of-pocket costs for epinephrine auto-injectors, expand insurance coverage for menopause visits, infertility treatment, colonoscopies, and advanced breast imaging when medically necessary. Pharmacists will now be permitted to dispense contraceptives — including emergency contraceptives — without a doctor’s appointment.

Parents with newborns in the NICU will see relief through a law requiring emergency out-of-network care to be billed at in-network rates. Another law mandates that 911 dispatchers be trained to provide step-by-step CPR instructions.

Business groups are watching closely as the state shifts to the “Finnigan” method of corporate income reporting, a move expected to increase taxable income for multinational companies and generate hundreds of millions in new state revenue. Additional changes tighten rules on deductions for global intangible low-taxed income, raising concerns about Illinois’ competitiveness among multistate corporations.

Other laws taking effect in 2026 include bans on compact fluorescent lamps, extended restrictions on single-use plastic toiletry bottles in small hotels, mandatory dementia screening before admission to assisted living facilities, strengthened worker safety protections, expanded leave for blood and organ donation, and updates to the Illinois Receivership Act and underground utility regulations.

Key changes set to take effect include, in list form:

1. Artificial Intelligence in Employment

• House Bill 3773 bans AI tools that result in discrimination based on race, gender, age, or disability.

• Employers must notify workers when AI is used and explain what is evaluated.

• Enforcement handled by the Illinois Department of Human Rights.

2. Grocery Tax Changes

• State 1% grocery tax is eliminated.

• Local governments may implement their own 1% grocery tax if adopted by ordinance by October 1, 2025.

• More than 650 municipalities have opted in.

3. Nursing Mothers in the Workplace

• Senate Bill 212 requires paid breaks for expressing breast milk during the first year after childbirth.

• Employers cannot require the use of paid leave for these breaks.

4. Healthcare and Insurance Updates

• Insurers must cover brand-name drugs during generic shortages.

• Coverage expanded for menopause visits, infertility treatment, colonoscopies, and advanced breast imaging.

• Pharmacists can dispense contraceptives, including emergency contraception, without a doctor’s appointment.

• Emergency NICU care billed at in-network rates.

• 911 dispatchers must be trained to provide step-by-step CPR guidance.

• Epinephrine auto-injector twin-packs capped at $60.

5. Corporate Tax and Business Changes

• FY2026 budget bill switches to the “Finnigan” method for combined reporting, raising taxable income for multistate corporations.

• Reduced deduction for global intangible low-taxed income (GILTI) to 50%.

• Tighter rules on interest expense add-backs.

6. Workplace and Worker Protections

• Expanded restrictions on employment agreements (Workplace Transparency Act).

• Worker safety protections strengthened under Workers’ Rights and Worker Safety Act.

• Illinois Human Rights Act updated with new civil penalties.

• Blood and organ donation leave extended to part-time employees.

7. Environmental and Consumer Safety

• Ban on compact fluorescent lamps (CFLs).

• Extension of single-use plastic toiletry bottles ban in hotels with fewer than 50 rooms.

• Mandatory dementia screening before admission to assisted living or shared housing facilities.

• Updates to underground utility regulations via JULIE, Inc.

8. Miscellaneous Updates

• Veteran pet adoption fees become optional.

• Illinois Receivership Act provides a new framework for court-appointed receivers.

• Funeral honors detail leave added for qualified veterans and armed forces members.

Full texts are available on the Illinois General Assembly website.