A Big Shift in Whistleblower Law
On January 1, 2025, Illinois significantly revised the Whistleblower Act (740 ILCS 174), making it easier for employees to speak up about misconduct and harder for employers to retaliate. One of the most important changes is the move from a “reasonable cause” standard to a “good faith” standard for protected activity.
This may sound like a small change in wording, but in practice it lowers the bar for employees to qualify for legal protection. It recognizes that workers are not lawyers, and they shouldn’t need legal training to raise concerns about possible wrongdoing.
What the Law Used to Require
Before the amendment, employees had to show they had “reasonable cause” to believe a law, rule, or regulation was being violated. That standard was sometimes interpreted as requiring evidence that could convince a neutral observer that the concern was objectively reasonable. Employers often tried to argue that, unless the employee could prove the law was actually being broken, the complaint wasn’t protected.
This created a trap: if an employee spoke up about something they thought was illegal but turned out to be mistaken, their employer could claim they weren’t a “real” whistleblower.
The New “Good Faith” Standard
Under the 2025 amendment, employees only need a good-faith belief that the conduct they are reporting is unlawful or poses a serious danger to public health or safety.
Good faith means the employee’s belief is genuine and honest—it does not have to be legally correct. For example:
- If a worker reports suspected financial fraud, but later it turns out the transactions were legal, the worker is still protected if they honestly believed fraud was occurring.
- If a nurse refuses to follow a directive she sincerely believes would endanger patients, she is protected even if the practice is technically within medical regulations.
The focus is now on the whistleblower’s state of mind, not on whether they can point to a specific statute or whether the violation can be proven later in court.
Why This Change Matters
- Encourages Early Reporting – Employees no longer need to wait until they have “proof” before speaking up.
- Protects Non-Experts – Many workers recognize unethical or unsafe behavior without knowing the exact law it violates.
- Reduces Retaliation Risk – Employers can’t hide behind the argument that “you were wrong about the law” to justify firing or punishing an employee.
- Covers Internal Complaints – Combined with the new rule protecting internal disclosures, this change means that even if an employee raises the issue only to a supervisor or HR, they are still covered.
Retaliation Still Has Broad Meaning
The updated Act also makes clear that retaliation is more than firing someone. It includes demotion, pay cuts, threats to immigration status, blacklisting from other employers, or any action that would deter a reasonable employee from reporting.
Stronger Remedies if Retaliation Happens
If an employer retaliates against a whistleblower, the court can now award:
- Back pay with interest
- Reinstatement to the same or equivalent position
- Compensatory damages for emotional distress or reputational harm
- Attorneys’ fees and court costs
- A statutory penalty of up to $10,000
The Illinois Attorney General can also bring enforcement actions, increasing the pressure on employers to comply.
Bottom Line
Illinois has made it clear: whistleblowers should not need to be legal scholars to be protected. If you honestly believe your employer is breaking the law or endangering public safety, you can speak up—internally or externally—without having to fear that a technical mistake will strip you of legal protection.
The good faith standard shifts the balance toward protecting workers and encourages reporting before harm escalates. Employers should train managers to respond appropriately to internal complaints, and employees should document concerns, knowing the law now stands more firmly behind them.
