Why Illinois HR Compliance Stands Out
Illinois has emerged as one of the most privacy-focused states in employment law, particularly around biometric data. The Biometric Information Privacy Act (BIPA) has spawned thousands of lawsuits and fundamentally changed how employers use time clocks, facial recognition, and fingerprint scanners.
Key Illinois HR compliance areas:
- BIPA (Biometric Privacy): Strict consent and disclosure requirements for fingerprint/facial time clocks
- Chicago-specific ordinances: Paid sick leave, predictive scheduling (hospitality), wage theft prevention
- Equal Pay Act: Salary history ban, equal pay certification requirements (100+ employees)
- Paid leave: State sick leave (1 hour per 40 worked, up to 40 hours/year)
- Background checks: Conviction record restrictions, salary history ban
- Cannabis legalization: Can't discriminate for off-duty use (with exceptions)
- One Day Rest in Seven: Weekly day off required (with exceptions)
- Day and Temporary Labor Services: Specific protections for temp workers
If you're using biometric time clocks in Illinois—you need BIPA compliance immediately. And if you have Chicago employees, additional rules apply.
🚨 BIPA: The $1,000-$5,000 Per Violation Biometric Privacy Law
Illinois's Biometric Information Privacy Act (BIPA) is the most heavily litigated employment law in the state. It regulates collection, storage, and use of biometric data: fingerprints, facial recognition, retina scans, voice prints.
The big problem: fingerprint time clocks and facial recognition systems. Thousands of employers have been sued for failing to obtain proper consent.
- Statutory damages: $1,000 per negligent violation, $5,000 per intentional/reckless violation
- Private right of action: Employees can sue directly (no government enforcement needed)
- No injury required: Technical violations = damages (even if no harm occurred)
- Class actions: One lawsuit can represent hundreds of employees
- Attorney fees: Winning plaintiffs recover fees (defendants can't)
Example: 100 employees using fingerprint time clock for 1 year without consent = $100,000-$500,000+ in exposure.
🏙️ Chicago-Specific Rules: Double Compliance Layer
If you have employees in Chicago, additional ordinances apply on top of Illinois state law:
- Chicago Paid Sick Leave: Up to 40 hours/year (separate from state)
- Fair Workweek Ordinance: Predictive scheduling for hospitality/retail (covered employers)
- Salary History Ban: Can't ask about previous compensation
- Ban the Box: Delay criminal history questions
- Wage Theft Ordinance: Written contracts, wage notices, penalties for non-payment
Your HR software must differentiate between Chicago and non-Chicago Illinois employees and apply the right policies.
Illinois's Key HR Requirements
1. BIPA (Biometric Information Privacy Act)
BIPA is THE critical compliance issue for Illinois employers. If you use fingerprint time clocks, facial recognition, hand scanners, or any biometric system, you must comply—or face lawsuits.
What BIPA Covers:
- Fingerprint scans (time clocks, door access)
- Facial recognition (security, time tracking)
- Hand geometry scanners
- Retina/iris scans
- Voice prints (used for authentication)
⚠️ BIPA Compliance Requirements:
Before collecting biometric data, you must:
- Written policy: Publicly available policy describing retention and destruction schedule
- Written disclosure: Inform employee in writing that biometric data is being collected, stored, and used
- Written consent: Obtain signed consent form (separate from general employment paperwork)
- Limit disclosure: Don't share biometric data with third parties (except as permitted)
- Data security: Store biometric data as securely as financial records
- Destruction schedule: Destroy data within 3 years or when employment ends (whichever comes first)
🚨 Common BIPA Mistakes:
- Installing fingerprint time clock without written consent (instant violation)
- Using generic consent buried in employee handbook (must be standalone)
- Failing to post retention/destruction policy publicly
- Sharing biometric data with time clock vendor without notice
- Not destroying data when employee leaves
Software feature needed: BIPA-compliant consent workflows, policy storage, data encryption, destruction tracking, vendor contract storage
2. Illinois Equal Pay Act
Illinois prohibits asking about salary history and requires equal pay certifications for larger employers. Pay disparities based on protected characteristics face scrutiny and penalties.
Equal Pay Requirements:
- Salary history ban: Can't ask about current or past compensation (statewide)
- Equal pay certification (100+ employees): Must certify to IDOL that wages are compliant every 3 years
- Pay equity analysis: Identify and correct pay disparities by gender, race, etc.
- Recordkeeping: Maintain wage and employment records for 5 years
⚠️ Equal Pay Certification Process (100+ Employees):
- Conduct pay equity analysis (compare similarly situated employees)
- Identify and correct unjustified pay disparities
- Submit certification to Illinois Department of Labor every 3 years
- Pay application fee (varies by company size)
- Failure to certify triggers investigations and penalties
Software feature needed: Pay equity analysis tools, salary history ban enforcement (ATS), compensation benchmarking, recordkeeping (5-year retention)
3. Illinois Paid Leave (State Sick Leave)
As of January 2024, Illinois requires paid sick leave for all employees. Employees accrue 1 hour per 40 hours worked, up to 40 hours per year. Chicago employees may be entitled to more under city ordinance.
Illinois Sick Leave Rules:
- Accrual: 1 hour per 40 hours worked
- Cap: Employers can cap accrual at 40 hours per year
- Carryover: Unused hours carry over (but use capped at 40/year)
- Eligibility: All employees (full-time, part-time, temporary)
- Uses: Own illness, family care, safe leave (domestic violence, etc.)
- Notice: Employer must provide written notice of sick leave policy
Software feature needed: Sick leave accrual tracking (1:40 ratio), carryover management, usage tracking, policy notice storage
4. Chicago Paid Sick Leave
Chicago's sick leave ordinance predates the state law and is slightly more generous. If you have Chicago employees, apply whichever law is more favorable.
Chicago Sick Leave Rules:
- Accrual: 1 hour per 40 hours worked
- Cap: 40 hours per year (employers can cap)
- Carryover: Up to 80 hours (but use capped at 40/year)
- Eligibility: Employees who work at least 80 hours for employer in Chicago
- Uses: Illness, family care, safe leave
- Retaliation prohibited: Can't discipline for using sick leave
Software feature needed: Location-based sick leave tracking (Chicago vs. rest of Illinois), separate accrual buckets, carryover up to 80 hours (Chicago)
5. Chicago Fair Workweek Ordinance
Chicago's Fair Workweek Law applies to covered employers in hospitality, healthcare, manufacturing, retail, and warehousing. It requires predictive scheduling with advance notice and premium pay for last-minute changes.
Who's Covered:
- Hospitality: 100+ employees globally and 30+ in Chicago
- Retail/warehouse: 250+ employees globally and 30+ in Chicago
- Healthcare: 250+ employees globally and 30+ in Chicago
- Manufacturing: 250+ employees globally and 30+ in Chicago
- Certain nonprofits: 250+ employees globally and 30+ in Chicago
Fair Workweek Requirements:
- Advance scheduling: Post schedules 10 days in advance
- Good faith estimate: Provide at hire
- Schedule changes: Predictability pay for changes <10 days (varies by notice)
- Decline shifts: Employees can decline shifts not on posted schedule
- Rest between shifts: 10-hour minimum (or premium pay)
Software feature needed: Schedule publishing (10-day enforcement), change tracking with premium pay, good faith estimates, rest-between-shifts detection
6. One Day Rest in Seven Act
Illinois requires employers to provide at least 24 consecutive hours of rest every 7-day period. Violations trigger penalties and back pay.
Rest Day Requirements:
- 24 hours off: Every 7 consecutive days (typically Sunday, but can be any day)
- Exceptions: Agriculture, hotel/restaurant workers, essential services (with proper permits)
- Voluntary work: Employees can waive for emergencies (with consent)
- Penalties: $500 per violation
Software feature needed: Scheduling alerts for 7-day stretches without day off, rest day tracking, exception documentation
7. Cannabis Use and Employment
Illinois legalized recreational cannabis, and employers cannot discriminate for off-duty use—with important exceptions for safety-sensitive positions.
What Employers Can and Can't Do:
- Can't discriminate: For off-duty cannabis use (can't refuse to hire or discipline)
- Can prohibit: Cannabis use during work hours, being impaired at work
- Can test: Pre-employment drug testing still allowed
- Safety-sensitive exceptions: Can prohibit cannabis for CDL drivers, heavy equipment operators, etc.
- Federal contracts: Drug-free workplace policies still enforceable
Software feature needed: Drug testing workflows, policy documentation, safety-sensitive position tracking
8. Criminal Record Restrictions
Illinois restricts use of criminal records in hiring. You can't ask about arrests without convictions, sealed/expunged records, or certain minor offenses. Chicago has additional Ban the Box rules.
Illinois Criminal Record Rules:
- Can't ask about: Arrests without conviction, sealed/expunged records
- Can ask about: Convictions (with limitations)
- Chicago Ban the Box: Delay criminal history questions until after conditional job offer
- Individualized assessment: Consider nature of conviction, time elapsed, job relevance
Software feature needed: ATS with Chicago Ban the Box enforcement, background check workflows, individualized assessment documentation
Illinois HR Compliance Checklist
Use this to audit your Illinois compliance (Chicago employers check both state and city sections):
âś… BIPA (Biometric Privacy)
âś… Paid Leave (State)
âś… Chicago-Specific (Only if you have Chicago employees)
âś… Equal Pay & Background Checks
âś… Scheduling & Rest Days
âś… Cannabis & Drug Testing
Essential Software Features for Illinois Employers
Illinois employers need these specialized features:
đź”’ BIPA-Compliant Time Tracking
Critical if using biometric systems:
- BIPA consent workflow (standalone, signed, before data collection)
- Written policy storage (retention and destruction schedule)
- Biometric data encryption (financial-grade security)
- Data destruction tracking (3 years or termination)
- Vendor contract management (BIPA compliance verification)
- Alternative: PIN-based or card-based time clocks (avoid biometrics entirely)
đź“… Location-Based Leave Tracking
Handle both state and Chicago sick leave:
- Illinois sick leave accrual (1:40 ratio, 40-hour cap)
- Chicago sick leave accrual (separate tracking, 80-hour carryover)
- Automatic policy selection based on work location
- Carryover management (state vs. Chicago rules)
- Usage tracking and reporting
đź“Š Pay Equity Analysis Tools
For Equal Pay Act compliance (100+ employees):
- Compensation benchmarking by protected class
- Pay disparity identification
- Audit trail for corrections
- Certification reporting (IDOL submission every 3 years)
- 5-year recordkeeping (automatic retention)
đź“… Chicago Fair Workweek Scheduling
For covered Chicago employers:
- Schedule publishing (10-day advance requirement)
- Change tracking with predictability pay calculation
- Good faith schedule estimate templates
- Rest-between-shifts detection (10-hour minimum)
- Employee right-to-decline tracking
đź“‹ One Day Rest in Seven Tracking
Ensure employees get weekly rest days:
- Scheduling alerts for 7+ consecutive days without day off
- Rest day documentation
- Exception tracking (agriculture, essential services, voluntary consent)
- Penalty risk warnings
đźš« Salary History Ban Enforcement
Prevent violations during recruiting:
- ATS blocks salary history questions
- Remove "current salary" fields from applications
- Hiring manager training reminders
- Chicago Ban the Box enforcement (delay criminal history questions)
🌿 Cannabis Policy Management
Navigate Illinois cannabis law:
- Drug testing policy documentation
- Safety-sensitive position designation
- Manager training on cannabis compliance
- Impairment observation documentation
Top HR Software for Illinois Businesses
These platforms handle Illinois's unique requirements (especially BIPA):
1. UKG Ready (formerly Kronos)
Best for: Illinois businesses needing BIPA-compliant time tracking (50-5000 employees)
UKG has specialized BIPA compliance features and offers both biometric and non-biometric time clock options. Their platform handles Illinois sick leave, Chicago Fair Workweek, and One Day Rest in Seven automatically. Strong choice for manufacturing and healthcare.
Illinois-Specific Features:
- BIPA-compliant biometric consent workflows
- Alternative time clocks (PIN, badge, mobile) to avoid BIPA
- Illinois sick leave accrual (1:40 ratio)
- Chicago sick leave tracking (separate bucket)
- Schedule rest day tracking (One Day Rest in Seven)
- Chicago Fair Workweek scheduling (covered industries)
Pricing: Custom (typically $20-40/employee/month)
Best for: Mid-to-large Illinois employers with hourly workforce
Read full UKG review →2. ADP Workforce Now
Best for: Illinois mid-sized businesses (50-500 employees)
ADP's Illinois compliance team keeps the platform updated with BIPA, sick leave, and Fair Workweek changes. Time clock options include both biometric (with BIPA compliance) and non-biometric. Pay equity analysis tools support Equal Pay Act certification (100+ employees).
Illinois-Specific Features:
- BIPA consent management (if using biometric clocks)
- Illinois and Chicago sick leave tracking
- Pay equity analysis and certification support
- Chicago Fair Workweek scheduling
- One Day Rest in Seven alerts
- Background check workflows (Ban the Box for Chicago)
Pricing: Custom (typically $15-25/employee/month)
Best for: Mid-sized Illinois businesses with dedicated HR
Read full ADP review →3. Paylocity
Best for: Chicago hospitality and retail (Fair Workweek compliance)
Paylocity's scheduling module is built for Chicago Fair Workweek. The platform handles 10-day advance scheduling, predictability pay, and rest-between-shifts automatically. Time tracking offers both biometric (with BIPA) and non-biometric options.
Illinois-Specific Features:
- Chicago Fair Workweek scheduling (10-day advance, predictability pay)
- BIPA-compliant time tracking (or mobile punch alternatives)
- Illinois and Chicago sick leave accrual
- One Day Rest in Seven tracking
- Pay equity analysis tools
- Chicago Ban the Box enforcement (ATS)
Pricing: Custom (typically $12-20/employee/month)
Best for: 50-1000 employees in Chicago hospitality/retail
Read full Paylocity review →4. Rippling
Best for: Illinois tech companies and startups (10-500 employees)
Rippling's mobile-first time tracking avoids BIPA issues (GPS + mobile punch, no biometrics). Illinois sick leave accrues automatically, and location-based policies apply the right rules to Chicago vs. non-Chicago employees. Pay equity analysis included.
Illinois-Specific Features:
- Mobile time tracking (no biometrics = no BIPA issues)
- Illinois sick leave accrual automation
- Chicago sick leave (location-based policies)
- Pay equity analysis
- Salary history ban enforcement (ATS)
- Background check workflows
Pricing: Starts at $8/user/month
Best for: Fast-growing Illinois companies avoiding BIPA
Read full Rippling review →5. Paycor
Best for: Illinois manufacturers and distributors (20-500 employees)
Paycor's time tracking offers badge/PIN options (avoiding BIPA) alongside BIPA-compliant biometric clocks. Strong scheduling features handle One Day Rest in Seven and Chicago Fair Workweek. Popular in Illinois manufacturing.
Illinois-Specific Features:
- BIPA-compliant time clocks (or badge/PIN alternatives)
- Illinois sick leave tracking
- Chicago sick leave (separate policy)
- One Day Rest in Seven alerts
- Scheduling compliance tools
- Pay equity reporting
Pricing: Custom (typically $99+ base + per employee)
Best for: Illinois manufacturing and distribution
Read full Paycor review →6. Gusto
Best for: Illinois small businesses (1-50 employees)
Gusto's simple time tracking uses mobile punch (no biometrics = no BIPA headaches). Illinois sick leave accrues automatically, and the platform is easy enough for non-HR experts. Perfect for small Illinois businesses avoiding compliance complexity.
Illinois-Specific Features:
- Mobile time tracking (no biometrics)
- Illinois sick leave accrual automation
- Simple leave tracking
- Pay equity reports
- Policy templates (Illinois-specific)
- Background check add-ons
Pricing: $40/month + $6/person
Best for: Illinois startups and small businesses
Read full Gusto review →Illinois HR Compliance FAQ
What is BIPA and does it apply to time clocks?
BIPA (Biometric Information Privacy Act) regulates collection, storage, and use of biometric data: fingerprints, facial scans, retina scans, voice prints. Yes, fingerprint time clocks are covered. Before collecting biometric data, you must: (1) post a written retention/destruction policy, (2) provide written disclosure, (3) obtain signed written consent (separate form). Violations cost $1,000-$5,000 per incident, and employees can sue directly. Thousands of Illinois employers have been sued for fingerprint time clocks without consent.
How can I avoid BIPA issues with time tracking?
Two options: (1) Use non-biometric time clocks: PIN, badge, mobile app with GPS, web punch. These don't collect biometric data, so BIPA doesn't apply. (2) If you use biometric clocks, comply with BIPA: Written policy, written disclosure, signed consent (before collecting data), secure storage, destruction within 3 years or termination. Most Illinois employers are switching to mobile or PIN-based systems to avoid BIPA liability.
Does Illinois have sick leave requirements?
Yes. As of January 2024, Illinois requires paid sick leave for all employees. Employees accrue 1 hour per 40 hours worked, up to 40 hours per year. Unused hours carry over (but use capped at 40/year). Chicago has a separate ordinance allowing carryover up to 80 hours. If you have Chicago employees, provide whichever is more generous.
What is Chicago's Fair Workweek Law?
Chicago Fair Workweek applies to covered employers in hospitality, retail, healthcare, manufacturing, and warehousing (100-250+ employees globally, 30+ in Chicago). It requires: 10-day advance scheduling, predictability pay for last-minute changes, good faith schedule estimates at hire, 10-hour rest between shifts (or premium pay). Penalties include $300-$500 per violation plus back pay. Not all Chicago employers are covered—check thresholds by industry.
Do I need to certify equal pay in Illinois?
If you have 100+ employees, yes. Illinois Equal Pay Act requires equal pay certification every 3 years. You must conduct a pay equity analysis, identify and correct unjustified disparities, and submit certification to Illinois Department of Labor with application fee. Failure to certify triggers investigations and penalties. Employers under 100 employees are not required to certify, but must still comply with equal pay laws.
Can I ask about salary history in Illinois?
No. Illinois prohibits asking about current or previous salary or benefits (statewide ban since September 2019). You can discuss salary expectations and share your pay range, but you cannot ask what candidates currently make or made in past jobs. Violations allow complainants to sue for damages and attorney fees. Update job applications and train hiring managers.
What is One Day Rest in Seven?
Illinois requires employers to provide at least 24 consecutive hours of rest every 7-day period. Typically Sunday, but can be any day. Exceptions exist for agriculture, hotel/restaurant workers (with proper permits), and essential services. Employees can voluntarily work 7+ days in emergencies with written consent. Violations trigger $500 penalties. Track rest days in your scheduling system.
Can I discipline employees for cannabis use in Illinois?
It depends. You cannot discriminate for off-duty cannabis use (refuse to hire, discipline, terminate). However, you can prohibit cannabis use during work hours and being impaired at work. Safety-sensitive positions (CDL drivers, heavy equipment operators) can have stricter policies. Federal contractors can enforce drug-free workplace policies. Update your drug testing policy and train managers on what's allowed.
Does Chicago's Ban the Box apply to private employers?
Yes. Chicago's Ban the Box ordinance requires employers to delay criminal history questions until after a conditional job offer. You can't ask about criminal history on applications or during initial interviews. Once you make a conditional offer, you can conduct background checks. Illinois state law also restricts asking about arrests without convictions and sealed/expunged records. Conduct individualized assessments before rejecting based on convictions.
What happens if I violate BIPA?
BIPA violations allow employees to sue for statutory damages: $1,000 per negligent violation, $5,000 per intentional/reckless violation, plus attorney fees. No actual harm is required—technical violations are enough. Illinois courts allow class actions, so one lawsuit can represent hundreds of employees. Example: 100 employees using fingerprint clock for 1 year without consent = potential $100,000-$500,000 liability. Thousands of Illinois employers have been sued. Compliance is critical.
Find the Right HR Software for Your Illinois Business
Compare top Illinois-compliant HR platforms (BIPA-ready!), read user reviews, and find the best fit for your business size and location.
Or browse our complete guide library for more specialized recommendations
Related Resources
HR Compliance Checklist by State
Compare Illinois requirements to other states
Best Time Tracking Software
Find BIPA-compliant (or BIPA-free) time clocks
Best Employee Scheduling Software
Chicago Fair Workweek compliance tools
How to Implement an HRIS System
Roll out new HR software for Illinois operations