New amendments made to the Illinois Whistleblower Act (“IWA”), 740 ILCS 174/1 went into effect as of January 1, 2025. House Bill 5561 made changes to whistleblower laws to improve protections for workers who report their employer’s wrongdoings or illegal activity.
As we usher in the new year, we want to make sure workers understand how the new Illinois laws of 2025 will impact them. So here’s an overview of the Illinois Whistleblower Act and its recent changes.
In this Article:
- Updates to Key Definitions
- Good Faith Belief
- Increased Penalties and Damages
- Are New Illinois Whistleblower Laws Really Best for Workers?
- Chicago Whistleblower Lawyer
Updates to Key Definitions
Several key definitions were updated in the Illinois Whistleblower Act for 2025, which may offer clarity when determining eligibility for certain whistleblower protections. Here’s an overview of the definitions you should know and understand if you believe your employer has violated the state’s whistleblower laws.
Adverse Employment Action. Any action that a reasonable employee would find discouraging from reporting or refusing unlawful activities, such as firing or demoting.
Employer. Broadly includes individuals, businesses, government entities, schools, colleges, and their agents acting on their behalf in employee-related matters.
Employee. Covers anyone working under an employer’s control unless they are truly independent contractors. It also includes physicians working in state-funded health facilities.
Public Body. Includes state or local government entities, officers, boards, school districts, or any institution supported by public funds.
Retaliatory Action. Includes adverse actions like interfering with future employment, immigration threats, or illegal discrimination. Excludes actions required by law or honest feedback given in good faith.
Supervisor. Someone with the authority to manage or correct an employee’s work or to address reported legal violations.
Good Faith Belief
The recent amendments to the Act introduce new language such as “good faith belief.” Under the revised law, employers are prohibited from retaliating against employees who refuse to participate in an activity based on a “good faith belief” that doing so would:
- violate state or federal law, rule, or regulation, or
- pose a serious threat to public health, employees, or safety.
In other words, employees are shielded from retaliation as long as their refusal is rooted in an honest and reasonable perception of illegality, even if their belief is later determined to be incorrect. The law ensures protections for employees reporting violations to:
- government agencies
- courts
- law enforcement
- supervisors
- company leaders
- official investigations
This includes potential Freedom of Information Act breaches or other legal standards.
Increased Penalties and Damages
Employers who act against whistleblowers should be held accountable. Workers who speak up against their employer’s illegal activity take a major risk to protect the greater good.
As outlined in HB 5561, the Illinois Attorney General can now take legal action against employers who violate the law on behalf of the people. The criminal penalty for violating this Act is a Class A misdemeanor.
Additionally, if an employer retaliates against a whistleblower, the worker will likely be financially impacted by lost wages. The new law now allows for the following damages to be collected:
- Interest on unpaid wages (9% annually, up to 90 days from filing a complaint).
- A $10,000 civil penalty against the employer.
- Up to $10,000 in extra damages.
If you spoke out against your employer, you don’t have to accept their bullying behavior. An employment lawyer who is well-versed in whistleblowing laws can step in the ring with you and fight back. You deserve to be made whole.
Are New Illinois Whistleblower Laws Really Best for Workers?
While the new amendments to the Illinois Whistleblower Act appear to be in the best interest of the workers, some experts fear it may create more roadblocks for the employees should they want to exercise their whistleblower rights.
Disparti Law Group’s lead employment attorney Cass T. Casper says:
“They’ve couched these as a good thing, and actually they create more opportunities for employers to challenge whistleblowing. Now every time an employee seeks the protection of the Act, an employer will be able to argue that the employee did not report in good faith. This is a loss for workers.”
Additionally, employers can argue that their adverse actions were unrelated to the employee’s whistleblowing such as job performance or policy violations. While some of these changes are a step in the right direction, pursuing a civil lawsuit for whistleblowing remains an uphill battle.
Chicago Whistleblower Lawyer
Considering the possible loopholes that exist in whistleblower laws in Illinois, it is vital that you find an experienced and dedicated attorney should you choose to take civil action against your employer.
The team of Chicago whistleblower lawyers at Disparti Law Group are some of the best in the country, with a proven track record of big wins for our clients.
It takes a considerable amount of courage and integrity to take a stand against your employer for their misdeeds. When filing a whistleblowing lawsuit, you deserve an attorney with similar attributes to hold corrupt businesses accountable.
For a FREE case review, contact us today at (312)600-6000 and find out why thousands say… Larry wins!!
