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Businesses face legal, regulatory challenges in lawsuit-heavy Illinois

Last updated: June 24, 2025 9:26 pm
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Businesses face legal, regulatory challenges in lawsuit-heavy Illinois
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(The Center Square) – An advocate for the Illinois business community says lawsuit-challenged legislation approved by the General Assembly could cost the state dearly.

Republican lawmakers cited Senate Bill 328 when they alleged that the Democratic supermajority short-circuits the legislature’s three-readings rule by gutting bill language and replacing it just before passage.

State Rep. Travis Weaver, R-Peoria, called SB 328 “just the worst example” of Illinois Democratic Party leaders violating the three readings rule.

Illinois Chamber of Commerce President and CEO Lou Sandoval said the measure broadens lawyers’ ability to use Illinois for general jurisdiction lawsuits.

“We don’t want that here. There needs to be balance. When we talk about markets, go-to-market strategies, it really puts an X on Illinois as a no-go state because of the litigious climate that’s there,” Sandoval told The Center Square.

Sandoval said Pennsylvania is the only state with a similar law in place.

“As you drive through Philly, you see nothing but billboards and it’s billboard after billboard of ambulance chasers. You know, ‘Call this lawyer for this. Workplace slip and fall, come here.’ Whatever the issue is, it’s there,” Sandoval said.

New York Governor Kathy Hochul vetoed a similar measure due to potential to drive businesses away.

During a conversation about the recent legislative session in Illinois, Sandoval said the state often punishes good businesses instead of rewarding them.

The Chamber of Commerce leader noted that businesses don’t get carveouts like other organizations for doing the right thing.

“Whether it be paid leave, whether it be workplace temperature, offering PPE or proper amenities to their employees, there’s never a carveout for them in that. It’s always punitive,” Sandoval said.

The $55.2 billion state budget signed earlier this month by Gov. J.B. Pritzker includes more than $480 million in tax hikes. Sandoval said business owners assess the net costs of operating in Illinois.

“You’re looking across state lines and you’re saying, ‘Well, just to the east of us or just to the north or just to the west of us, they don’t have those issues.’ It really hurts some of our edge locations on the borders of our state,” Sandoval said.

The ALEC-Laffer Rich States, Poor States Report released in April ranked Illinois 46th out of 50 for 2025 economic outlook and 47th out of 50 for economic competitiveness over the past 10 years.

Greg Bishop and Kevin Bessler contributed to this story.

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