ILLINOIS — Business owners across the state are sounding the alarm over what they say is an increasingly hostile environment for companies operating in Illinois, citing skyrocketing legal exposure, rising taxes, and new laws that make the state less attractive for investment and growth.
The latest point of contention is Senate Bill 328, a piece of legislation that has drawn criticism for allegedly violating legislative transparency rules and expanding the state’s jurisdiction in civil lawsuits. Critics argue the move will worsen Illinois’ already litigious climate and further deter job creators.
Legal Shift Sparks Alarm From Business Community
The Illinois Chamber of Commerce has warned that SB 328, recently passed by the General Assembly, will significantly broaden lawyers’ ability to bring general jurisdiction lawsuits in Illinois, even for out-of-state issues.
Chamber President Lou Sandoval said the measure “puts an X on Illinois” for companies considering where to grow or locate operations.
“We don’t want that here,” Sandoval said during a discussion covered by Advantage News. “It really puts an X on Illinois as a no-go state because of the litigious climate.”
Sandoval compared Illinois’ path to Pennsylvania, which has faced similar legal challenges due to a comparable law, warning that such policies could turn Illinois into another hotbed for “billboard lawsuits.”
Bipartisan Concerns Over Legislative Transparency
State Rep. Travis Weaver (R-Peoria) slammed the process behind SB 328, calling it the “worst example” of how the Democratic supermajority bypasses the traditional three-readings rule by gutting and rewriting bill language just before final passage.
Weaver and others have voiced frustration with what they see as a lack of checks and balances when laws with far-reaching economic consequences are rushed through the process.
Illinois Falling Behind in Competitiveness
Sandoval also pointed to the 2025 ALEC-Laffer “Rich States, Poor States” report, which ranks Illinois:
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46th in economic outlook, and
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47th in long-term competitiveness.
He warned that the state’s current direction is pushing companies to move across state lines — especially near border regions — to escape Illinois’ burdensome legal and regulatory landscape.
“You’re looking across state lines and you’re saying, ‘Well, just to the east or west, they don’t have those issues,’” he said.
No Relief for ‘Good Actor’ Employers
Adding to the pressure is a lack of exemptions for employers who meet or exceed state expectations on workplace standards.
Even when companies provide paid leave, proper PPE, or invest in employee welfare, Sandoval noted there are “never carveouts” or incentives for them — only penalties.
“It’s always punitive,” he said. “Good businesses get punished instead of rewarded.”
New Budget Adds $480M in Business Tax Hikes
Earlier this month, Governor J.B. Pritzker signed a $55.2 billion state budget, which includes over $480 million in new taxes. Business groups say this further increases the cost of doing business in Illinois.
With businesses already facing rising costs and shrinking incentives, Sandoval said these developments compound the challenges of operating in the state and make it difficult for employers to plan long-term.
Are you a business owner navigating Illinois’ regulatory and legal environment? How have recent laws or taxes impacted your operations? Share your experience with ChicagoSuburbanFamily.com — your voice matters.
