HB3530 Summary: Illinois Employee Security Act

• Prohibits employers from discharging employees without "just cause," defined as: failure to satisfactorily perform duties after progressive discipline, egregious misconduct, or bona fide economic reasons.

• Requires employers to use progressive discipline with at least 15 days between first warning and termination, and prohibits relying on discipline older than one year; exempts egregious misconduct from progressive discipline requirement.

• Mandates employers provide written explanation of discharge reasons within 3 days and accrual of severance pay at 1 hour per 12.5 hours worked in first year, then 1 hour per 50 hours worked thereafter.

• Restricts use of electronic monitoring for employment decisions; employers must disclose monitoring in advance and can only use data for non-employment purposes, egregious misconduct, safety threats, or legal requirements.

• Establishes enforcement through Department of Employment Security with remedies including actual and liquidated damages (minimum $10,000 or 3x actual damages), civil penalties, attorney fees, and creates Wrongful Discharge Enforcement Fund; applies to disciplinary and discharge actions beginning one year after January 1, 2022 effective date.