ILLINOIS — Two newly passed bills in the Illinois General Assembly are drawing backlash from business leaders and policy advocates who say the legislation will make the state even less competitive for job creation and investment.
New Labor and Tax Measures Spark Outcry
The Illinois Senate and House recently advanced Senate Bill 3649 and House Bill 793, both of which are now awaiting Governor J.B. Pritzker’s signature. Critics argue the bills will increase liability risks for businesses and further complicate employer-employee relations, especially in industries already struggling with inflation and workforce shortages.
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SB 3649 expands the state’s Biometric Information Privacy Act (BIPA), exposing more employers to potential lawsuits over data collection practices — even when unintentional.
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HB 793 restricts businesses’ ability to define independent contractor relationships, a change that could hurt freelancers and raise compliance burdens for companies.
Illinois’ Business Climate Already Under Pressure
These bills come at a time when Illinois continues to rank among the least business-friendly states in the country, according to Illinois Policy Institute. Many employers cite rising taxes, regulatory burdens, and workforce challenges as reasons for relocating or downsizing operations in the state.
Todd Maisch, President of the Illinois Chamber of Commerce, has warned that measures like these signal to businesses that Illinois is “closed for business.”
“Rather than improving our economic competitiveness, we’re watching lawmakers stack the deck against growth,” Maisch stated in a recent policy briefing.
Supporters Say Bills Protect Workers
Democratic lawmakers supporting the bills argue that the legislation is designed to safeguard workers’ rights and privacy, particularly in a digital economy where biometric data is often collected without clear consent.
Supporters say the bills address modern workplace challenges and ensure businesses adhere to ethical data practices and labor classification standards. State Sen. Robert Peters defended the measure, saying it’s about fairness and dignity in the workforce.
Governor’s Decision Now Awaited
As of now, both bills are on Governor Pritzker’s desk. While the governor has not officially commented on whether he will sign the bills into law, many expect him to approve both given his support for prior labor protections.
Industry groups and small business coalitions have urged a veto or at least a partial amendment, warning that the combined impact of the legislation could discourage innovation and job creation across Illinois.
Have thoughts on how these new business laws could affect your industry or job security in Illinois? Share your perspective with us at ChicagoSuburbanFamily.com — your voice matters.
