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24B9CBEC-41CE-499E-8870-A246114F14FD-300x300For Chicago-area business owners, January 1, 2026 is shaping up to be a deceptively important date. There is no single headline-grabbing law taking effect. Instead, several Illinois and federal changes arrive at once, quietly affecting hiring practices, payroll, employee benefits, business expenses, and tax planning. These are exactly the kinds of changes that tend to create problems when they are discovered too late.

One of the most significant developments involves the use of artificial intelligence in employment decisions. Beginning January 1, 2026, Illinois law treats misuse of AI in employment as a potential civil rights violation. Employers using AI tools for recruiting, resume screening, interview scoring, scheduling, performance evaluations, or similar decisions must ensure those tools do not produce discriminatory results. The focus is on outcomes, not intent. Even well-meaning employers can face exposure if automated systems disproportionately affect protected classes. The law also requires notice to employees when AI is used in covered employment decisions, making it important to understand how HR software actually functions.

Another change affects payroll practices for nursing mothers. Illinois now requires that

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What-Illinois-Business-Owners-Should-Know-About-the-One-Big-Beautiful-Bill-Act-300x300Illinois business owners have been closely following developments under the Corporate Transparency Act (“CTA”), particularly given the uncertainty created by conflicting court decisions and shifting enforcement positions. A recent federal appellate ruling provides important legal clarity, although practical compliance obligations for Illinois entities remain limited for now.

Federal Appellate Court Upholds the CTA

On December 16, 2025, the United States Court of Appeals for the Eleventh Circuit issued a unanimous decision in National Small Business United v. U.S. Department of the Treasury, holding that the CTA is constitutional. This ruling overturned a March 2024 federal district court decision that had invalidated the statute.

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What-Illinois-Business-Owners-Should-Know-About-the-One-Big-Beautiful-Bill-Act-300x300

Bellas and Wachowski attorneys chicago illinois suburbs to help you with your business compliance

Illinois and the City of Chicago continue to take a firm stance on workplace harassment prevention. For business owners, this means that annual sexual-harassment training is mandatory, and Chicago employers face additional, more extensive requirements each year.

Many companies remain unaware of how these obligations overlap, and the consequences for noncompliance can be expensive. Here is a straightforward reminder of what you must provide and where to find free, compliant training materials.

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F5A24B8C-CF4E-4965-AD33-BCA9434EB73E-300x300Effective Date: January 1, 2026

The Illinois Receivership Act will take effect on January 1, 2026, transforming how courts, creditors, and distressed businesses handle asset protection and management across the state. This new legislation provides expanded legal tools for addressing financially distressed assets, ensuring greater consistency and transparency in receivership proceedings.

Scope of the Act:

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What-Illinois-Business-Owners-Should-Know-About-the-One-Big-Beautiful-Bill-Act-300x300The Federal Trade Commission (FTC) tried to ban non-compete agreements across the country. That sweeping ban is now effectively dead. A federal judge struck it down, and the FTC recently gave up its appeals.

But that doesn’t mean employers are free to use non-competes however they like. The FTC has made clear that it will still go after what it sees as “anticompetitive” non-competes on a case-by-case basis. And here in Illinois, state law continues to strictly regulate how and when non-competes can be used.

For business owners, the message is simple: non-competes are not gone, but they’re under a microscope.

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What-Illinois-Business-Owners-Should-Know-About-the-One-Big-Beautiful-Bill-Act-300x300Several new employment laws go into effect in September and will affect employers in every state.

Independent Contractors rules:

  • The US Department of Labor adopted a six-factor test in January for classifying independent contractors under the Fair Labor Standards Act. This replaces the previous two-factor approach. The result is more workers will be classified as
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https://www.businessattorneychicago.com/files/2025/09/What-Illinois-Business-Owners-Should-Know-About-the-One-Big-Beautiful-Bill-Act-copy.png-300x300.pngTransfer on Death Instruments, or TODIs, have become a popular estate planning tool in Illinois. They allow real estate to pass directly to named beneficiaries when the property owner dies, all without the need for probate. But what happens if the deceased

owner had unpaid debts and the property transferred through the TODI is the only substantial asset? Can creditors go after the property? Do beneficiaries have to pay off those debts? Under Illinois law, the answer isn’t as simple as many assume.

A TODI is a legal document that enables a property owner to designate someone to receive real estate automatically at death. It’s similar to naming a beneficiary on a bank account or life insurance policy, but it applies to real property, often a primary residence.

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What-Illinois-Business-Owners-Should-Know-About-the-One-Big-Beautiful-Bill-Act-copy-300x300Illinois may soon see a major update to its Small Estate Affidavit process. On June 20, 2025, the Illinois General Assembly passed Senate Bill 83 and sent it to the Governor for consideration. The Governor has until August 19, 2025, to sign or veto the bill. Since

the General Assembly is currently out of session, failure to act by that date will result in an automatic veto.

Senate Bill 83, introduced by the Illinois State Bar Association’s Trusts and Estates Section Council, is designed to modernize and expand access to the Small Estate Affidavit, a tool that allows certain estates to bypass the formal probate process. Under

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https://www.businessattorneychicago.com/files/2025/09/What-Illinois-Business-Owners-Should-Know-About-the-One-Big-Beautiful-Bill-Act.png-300x300.pngA new bill, Senate Bill 1667, has been sent to the Governor’s desk and could soon bring meaningful updates to the Illinois Trust Code. If signed into law, this legislation would create additional obligations for trustees, especially regarding document retention and the recovery of unclaimed trust assets. These proposed changes reflect a broader movement to modernize trust administration and promote long-term accountability.

At the heart of the bill are two key provisions. First, trustees would be required to keep a copy of the trust instrument for a minimum of seven years after the trust has terminated. This post-termination retention period helps preserve essential records that could become critical in the event of future questions, disputes, or beneficiary claims. Second, trustees would be obligated to conduct a reasonable search for any trust property that has been reported to the Illinois State Treasurer as unclaimed. This requirement is designed to ensure that assets do not slip through the cracks or go unclaimed due to administrative oversight.

Together, these changes aim to enhance transparency, reduce the likelihood of lost or forgotten property, and protect the interests of beneficiaries even after the trust’s formal duties have ended. As trust assets become increasingly diverse, and as more accounts

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https://www.businessattorneychicago.com/files/2025/08/What-Illinois-Business-Owners-Should-Know-About-the-One-Big-Beautiful-Bill-Act.jpg-300x300.jpgA New Era of Tax Policy for Business Owners

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, ushering in sweeping changes to the federal tax code. While the law has drawn national attention for its b

roader political implications, it contains several key provisions that Illinois business owners should take seriously. These changes affect everything from depreciation schedules and pass-through deductions to employer tax credits and employee compensation planning.

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