Illinois Workplace Transparency Act Arbitration Agreements

Maria Souza

The WTA limits confidentiality rules in settlement or termination contracts and, when employers enter into these agreements with workers, potential workers or former employees, a number of requirements must be met. Currently, coverage requires a threshold of 15 employees. The boundaries of an employee`s work environment are also extended to remote environments and work outside established workplaces. The law contains only two essential exceptions to restrictions on an employer`s ability to require confidentiality in employment, separation or transaction agreements. All employment, separation and arbitration agreements are unique and require individual attention. The use of form agreements is unlikely to accurately reflect the intent of the parties and will not meet the recently expanded requirements of the Illinois law. Lawyers for the Lane-Waterman Labor – Employment Law Group are prepared to advise employers on all matters related to the Illinois Workplace Transparency Act, including the review of current and future employment contracts for new, current or terminated employees. Illinois employers and those who use the services of our state`s contractors and consultants will be encouraged to review their policies, employment contracts, arbitration agreements and work manuals to ensure they comply with the Labour Transparency Act. The WTA`s provisions, which provide for limiting the application of labour arbitration agreements for claims related to allegations of discrimination, harassment or retaliation, may be anticipated by the Federal Arbitration Act (FAA).

Employers should be aware that the FAA does not cover transportation workers, who would therefore be subject to WTA restrictions, regardless of the FAA`s pre-emption restriction. The Labour Transparency Act applies to certain provisions as defined in employment contracts. In particular, confidentiality agreements and non-disparation agreements cannot be used to prevent employees from making truthful statements or disclosures reporting alleged illegal or criminal employment practices.