Despite Growing Economic Concerns, Lawmakers Continue to Fail Illinois Businesses

During the most recent legislative session, Illinois General Assembly members passed two bills that are likely to push more businesses out of the state rather than bring them in. Senate Bill 328 could change the way plaintiffs are able to sue foreign corporations, and Senate Bill 1976 would freeze workplace regulation standards in the year 2025.

Senate Bill 328 increases the likeliness of foreign corporations registered in Illinois being sued, particularly by plaintiffs not located in the state. The Bill requires that foreign corporations registered in the state consent to its “general jurisdiction”, as opposed to the specific jurisdiction the State previously applied. This would allow plaintiffs to sue businesses regardless of where they reside or where the injury occurred, so long as the “action alleges injury or illness resulting from exposure to a substance defined as toxic under the Uniform Hazardous Substances Act of Illinois”.

In a time where even EPA hazardous substance standards are being criticized as “overly broad”, this has the potential to increase unnecessary litigation and create financial burden on businesses already dealing with some of the harshest taxes and business regulations in the country. The Illinois Supreme Court has explicitly rejected exercising such broad authority over businesses, though other state courts have. Should the Bill be signed by the Governor before its deadline, it will be only the second statute of its kind in the country, Pennsylvania having the first.
Senate Bill 1976 would become yet another discouraging factor to companies considering, or already doing, business in Illinois. The Bill, if passed, would freeze workplace regulations exactly as they are right now. This means if the federal government were to loosen workplace regulations in the future, Illinois would require businesses to maintain the level of standards that were in place as of April 28, 2025, regardless of the reasonableness of the federal changes. This would apply to federal laws affecting wage and hours, coal mining safety, and the Occupational Safety and Health Act.

While some argue this would help safeguard against federal deregulation posed by the current administration, it also threatens a negative impact on businesses and workers. Such a bill would prevent the timely adoption of less stringent regulations that may later be necessary to maintain or even revive Illinois’ already fragile business sector. Historically, when regulation standards are high, the cost for business compliance is as well. This often leads to less compliance overall and increased risk for workers. Illinois’ Administrative Code is already more restrictive at the state level than 44 others and the state is among the top 10 most burdensome for businesses under federal regulations, prompting concern over the Bills necessity.

Businesses already transacting in Illinois, and those considering it, should weigh these potential changes and their long-term impact as the deadline approaches for Governor Pritzker to either veto or sign the bills into law.

For more information about how these bills might affect your business, contact the qualified attorneys at Rock Fusco & Connelly, LLC.