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Key Illinois Legislation that Could Impact Small Business

Key Illinois Legislation that Could Impact Small Business

February 18, 2026

Over the past few weeks, Illinois legislators have filed thousands of bills—here are a few that could impact small businesses

Illinois legislators have filed or reassigned thousands of bills so far this year—many of which could impact small businesses. Here are a few of them. Click on the links to read more about them.

SB 2413 (Villivalam) would impose a job (or payroll) tax on Illinois workers and employers to fund a state-run paid-leave program.

SB 2967 (Johnson) would provide an additional 40 hours of paid leave to employees with menstrual health conditions (on top of the hours provided by the Paid Leave for All Workers Act).

SB 3052 (Collins) would end Illinois’s at-will employment laws, forcing employers to prove just cause before discharging an employee.

SB 3535 (Rose) would grant small businesses with 50 or fewer employees a tax credit to offset the cost of the paid leave they provide their employees under the Paid Leave for All Workers Act.

SB 3614 (Turner)/HB 4874 (Elik) provides for the creation of small business asset purchase accounts to empower small businesses to make investment decisions based upon operational needs rather than tax deadlines.

SB 3821 (Lightford)/HB 5366 (Hernandez) would increase the state’s minimum wage to $27/hour by 3032, eliminate the tip credit, and grant non-injured interest groups the right to sue employers over minimum wage allegations.

Thousands of bills have been filed over the past couple of weeks. These are just a few of the many proposals the Illinois General Assembly is considering this spring.

Would these proposals impact your small business? If so, register to attend NFIB’s Small Business Day Legislative Reception on February 24 to share your story with legislators! Or, if you’re unable to make it, email State Director Noah Finley at noah.finley@nfib.org, so that he can share your story and concerns.

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