Legal Question in Employment Law in Illinois

This sounds more complicated than can be properly addressed in this kind of on-line forum. That being said, you definitely should consult an attorney - and being in Chicago you can contact the Chicago Bar Association's Lawyer Referral Service. There's the EEO too, but that directly would probably take more time. You definitely have the age factor as a possible issue, but that is also fact-dependent especially if the employer is generally reorganizing. You don't seem to be suggesting there is a racial component, but without more information that too can't be ruled out. As to the confidentiality agreement there may be ways of bargaining for it to be lifted but that too needs more facts. The fact that they are offering a job at lower pay could suggest a couple of things: they are afraid you will raise the age or race issue (or other issue), or they are sincere and don't know what else to do. While I'm not trying to make apologies for your employer in any way, some employers definitely are having difficulty keeping things going without staff changes and if they have been "loyal" in the past this may be their unsophisticated way of trying to deal with the situation. Definitely spend the time with an attorney to have him or her understand all the potential relevant facts.