Labor & Employment

Amends the Public Employee Disability Act. Provides that, whenever an eligible employee suffers any injury or illness in the line of duty (rather than suffers any injury in the line of duty) which causes that employee to be unable to perform the employee's duties, the employee shall continue to be paid by the employing public entity on the same gross pay basis, inclusive of all pensionable salary, as the employee was paid before the injury (rather than paid by the employing public entity on the same basis as he was paid before the injury), with no deduction from and with continued accrual of any sick leave credits (rather than with no deduction from his sick leave credits) and specified other compensation, with other requirements. Makes technical changes.

Amends the Employment of Teachers Article of the School Code. In a provision requiring a school board, before setting a hearing on charges stemming from causes that are considered remediable, to give a teacher reasonable warning, in writing, stating specifically the causes that, if not removed, may result in charges, allows a teacher to grieve the issuance of such warning pursuant to the applicable collective bargaining agreement to determine whether the board had just cause in issuing the warning. Requires the written warning to narrowly specify the nature of the alleged misconduct that needs to be remedied. Provides that under no circumstances may the written warning remain effective for longer than 4 years from the date of the issuance of the written warning. Requires the school district to use reasonable efforts to remove the written warning from the teacher's personnel file after the 4 years have elapsed or sooner if agreed to through the exclusive bargaining representative, with an exception. Effective immediately.

Amends the Volunteer Emergency Worker Job Protection Act. Provides that employment protections for volunteer emergency workers apply to volunteer emergency workers participating in required training, including a prohibition on termination and penalizing (rather than only termination). Provides that the employer may not require the employee to take vacation time or other compensatory time in order to respond to an emergency or participate in training. Provides that the Act does not apply to any employer that is a municipality with a population of 15,000 or more (currently 7,500 or more). Makes conforming changes.

Amends the Chicago Police, Chicago Firefighter, and Chicago Municipal Articles of the Illinois Pension Code. Provides that a person who becomes a member on or after January 1, 2026 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. Provides that a member subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired. Provides that if another option is not chosen by the member, the default employee contribution to the account shall be 3% of the member's salary. Provides that the plan administrator may automatically increase members contributions by no more than 1% per year, and a member may choose to opt out of the automatic increases. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Creates the Transparency in Downcoding Act. Provides that the Act applies to certain policies of health insurance amended, delivered, issued, or renewed on or after the effective date of the Act, except for employee or employer self-insured health benefit plans under the federal Employee Retirement Income Security Act of 1974 and health care provided pursuant to the Workers' Compensation Act or the Workers' Occupational Diseases Act. Prohibits a health insurance issuer from using an automated process, system, or tool to downcode a claim; from downcoding a claim based solely on the reported diagnosis codes; and from using downcoding practices in a targeted or discriminatory manner against physicians who routinely treat patients with complex or chronic conditions. Requires downcoding decisions to be made by a physician licensed to practice medicine in all its branches in any United States jurisdiction and of the same or similar specialty as a physician who typically manages the medical condition or disease. Sets forth provisions concerning notification requirements for downcoded claims; the appeal process for downcoded claims; enforcement by the Department of Insurance; and penalties. Provides that any pattern or practice of discriminatory downcoding identified by the Director of Insurance or another regulatory authority shall be subject to enforcement actions, including fines, restitution, or suspension of the health insurance issuer's license in this State. Effective immediately.

Amends the Evaluation of Certified Employees Article of the School Code. Prohibits an evaluator from using an artificial intelligence tool to assign a numerical score or qualitative rating for any component of a teacher's evaluation or any evaluation task that requires professional judgment. However, allows an artificial intelligence tool to be used to support the evaluator in administrative tasks.

Amends the Illinois Health Insurance Portability and Accountability Act. Defines "grandfathered health plan". Provides that, except for grandfathered health plans, a health insurance issuer in the individual, small group, or large group market shall not deny coverage to an individual or employer due to the individual's or employer's failure to pay premiums owed under a prior policy, certificate, or contract of insurance. Specifies that nothing in the provisions concerning past-due premiums prohibits a health insurance issuer from pursuing the collection of past-due premiums from an individual or employer by any other means permitted by law. Effective immediately.

Amends the Illinois Power Agency Act. In provisions concerning colocation of photovoltaic community renewable generation projects, changes references from "community renewable generation project" to "photovoltaic community renewable generation project" and "community solar projects" to "photovoltaic community renewable generation projects". Requires a project labor agreement for the new construction of certain facilities related to community-driven community solar projects. In a provision applying prevailing wage requirements to facilities for which a renewable energy credit delivery contract is signed, removes an exception for multi-family residential buildings with aggregate geothermal system tonnage, including colocated projects, of no more than 29 tons. Amends the Energy Transition Act. Provides that the Department of Corrections and the Department of Commerce and Economic Opportunity shall jointly develop activities to support the recruitment of eligible candidates to the Illinois Climate Works Preapprenticeship Program. Provides that the activities shall include coordinating on sharing with community-based providers the contact information of persons preparing to be released into the community, including names, addresses, phone numbers, and email addresses, if the person preparing to be released consents to the person's contact information being shared. Makes other changes.

Amends the Illinois Insurance Code. Establishes reimbursement rates for mental health and substance use disorder treatment services for all group or individual policies of accident and health insurance or managed care plans that are amended, delivered, issued, or renewed on or after January 1, 2027 or for any contracted third party administering the behavioral health benefits for the insurer. Requires a group or individual policy of accident and health insurance or managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2026 or any contracted third party administering the behavioral health benefits for the insurer to cover certain medically necessary mental health and substance use disorder treatment services. Provides that, if the Department of Insurance determines that an insurer or a contracted third party administering the behavioral health benefits for the insurer has violated a provision concerning mental health and substance use parity, the Department shall by order assess a civil penalty of $1,000 for each violation. Excludes certain health care plans serving Medicaid populations who are enrolled under the Illinois Public Aid Code or under the Children's Health Insurance Program Act from provisions concerning mental health and substance use parity. Requires the Department to review the impact of the proposed mental health and substance abuse mandate on network adequacy for mental health and substance use disorder treatment and access to affordable mental health and substance use care. Permits the Department to examine out-of-network utilization and out-of-pocket costs for insureds for mental health and substance use treatment and services for all plans to compare with in-network utilization. Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, and the School Code to require coverage under those provisions. Effective immediately.

Amends the Workplace Transparency Act. Provides that no contract, agreement, clause, covenant, waiver, or other document shall prohibit, prevent, or otherwise restrict an employee, prospective employee, or former employee from engaging in concerted activities to address work-related issues. Provides that any agreement, clause, covenant, or waiver that is a mutual condition of employment or continued employment may include provisions that would otherwise be against public policy if it acknowledges the right of the employee or prospective employee to engage in concerted activities to address work-related issues. Provides that an employee, prospective employee, or former employee and an employer may enter into a valid and enforceable settlement or termination agreement that includes promises of confidentiality related to alleged unlawful employment practices if the confidentiality provision expires no later than 5 years after the alleged unlawful employment practices occurred. Provides for the recovery of consequential damages incurred in challenging a contract for violation of the Act. Makes other changes.