ILLINOIS — As economic uncertainty continues to grip the state, Illinois lawmakers have passed two controversial bills that business advocates say may further damage the state’s economic competitiveness. Critics warn that both pieces of legislation — Senate Bill 328 and Senate Bill 1976 — risk driving out existing companies and discouraging new investments in Illinois.
Supporters of the bills argue they offer safeguards for workers and residents, but opponents say they introduce new legal liabilities and rigid regulations during a time when flexibility is crucial for survival.
SB 328: Broad Legal Risk for Foreign Corporations
Senate Bill 328 aims to expand the state’s jurisdiction over foreign corporations registered in Illinois, allowing plaintiffs from anywhere in the country to sue businesses in Illinois courts — even if the harm did not occur in the state.
The bill asserts that companies consent to “general jurisdiction” simply by registering in Illinois. That shift could allow lawsuits to proceed based solely on the company’s registration — a move that Illinois’ own Supreme Court has previously rejected as overly broad.
As outlined in a LinkedIn policy brief, this bill could lead to increased litigation costs, particularly in cases related to exposure to substances classified as “toxic” under Illinois law.
SB 1976: Freezing Regulatory Standards in Place
The second measure, Senate Bill 1976, proposes locking in current workplace regulatory standards as of April 28, 2025, regardless of any future changes at the federal level.
This would apply to labor laws, wage and hour rules, OSHA regulations, and coal mining safety standards. If federal laws are relaxed in the future, Illinois businesses would still be bound to 2025-era regulations — effectively ignoring potentially more reasonable updates from Washington.
Proponents believe this is a safeguard against federal deregulation under current or future administrations. But opponents — including regulatory analysts and economic policy groups — argue it could make Illinois one of the least adaptive states when it comes to economic reform.
Illinois Businesses Face Tough Decisions
The state already ranks among the top 10 most burdensome in terms of federal compliance costs, and its Administrative Code is stricter than that of 44 other states. Legal experts and economic analysts fear that these two bills could create an environment that further stifles innovation and discourages growth.
Unless Gov. JB Pritzker vetoes either bill before their respective deadlines, both could become law — making Illinois only the second state in the nation (after Pennsylvania) to adopt such aggressive jurisdictional language for corporations.
Do you think these new bills protect residents or push businesses away? Join the debate at ChicagoSuburbanFamily.com.
