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What is wrongful termination in Illinois?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Illinois balances at-will employment with multiple recognized exceptions giving employees substantial protection.

1. Public Policy Tort (Kelsay/Palmateer)

Two seminal cases established the retaliatory discharge tort:

  • Kelsay v. Motorola, Inc., 74 Ill. 2d 172 (1978) — fired for filing workers' comp.
  • Palmateer v. International Harvester, 85 Ill. 2d 124 (1981) — fired for reporting employee's criminal activity to police.

    • The plaintiff must show: (1) discharge, (2) in retaliation for activities, and (3) the discharge violates a clearly mandated public policy found in the Constitution, statutes, or judicial decisions.

    2. Implied Contract — Duldulao

    Duldulao v. St. Mary of Nazareth Hospital, 115 Ill. 2d 482 (1987), holds that an employee handbook creates an enforceable contract if: (1) language is clear enough that a reasonable employee would believe an offer was made, (2) the handbook is disseminated to the employee, and (3) the employee continues to work, accepting the offer.

    3. Illinois Human Rights Act — 775 ILCS 5/2-102

    Prohibits termination based on race, color, religion, sex, sexual orientation, gender identity, national origin, ancestry, age (40+), pregnancy, disability, military status, marital status, order of protection status, arrest record, work authorization status. Applies to employers with 1+ employees (after 2020 amendment). File with IDHR within 300 days.

    4. Illinois Whistleblower Act — 740 ILCS 174

    Prohibits retaliation against employees who report violations of state or federal law. Damages include reinstatement, back pay, interest, costs, and attorney's fees. Amended effective January 1, 2025 to broaden coverage.

    5. Workers' Comp Retaliation — 820 ILCS 305/4(h)

    Codifies Kelsay — fired for filing comp claim is actionable.

    6. WARN Act — 820 ILCS 65

    Illinois WARN Act covers employers with 75+ employees (broader than federal 100).

    7. Statute of Limitations

  • Retaliatory discharge tort: 5 years (limited to common-law action).
  • IHRA: 300 days to file charge.
  • Whistleblower: 5 years for some claims.

    • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You were fired in retaliation for reporting illegal conduct or filing a workers' comp claim
    • Your employee handbook contained progressive discipline you believe created a Duldulao contract
    • You received a layoff notice that may trigger Illinois WARN Act
    Related Statutes & Laws
    • 775 ILCS 5/2-102
    • 740 ILCS 174/15
    • 820 ILCS 305/4(h)
    • 820 ILCS 65

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.