At-a-Glance Compliance Overview

State Mini-FCRA Laws

Illinois does not maintain a comprehensive state “mini-FCRA” regulating consumer reporting agencies similar to laws adopted in states such as California or Colorado.

Employment background checks conducted through consumer reporting agencies are primarily governed by the federal Fair Credit Reporting Act (FCRA). Illinois instead regulates specific aspects of employment screening through targeted statutes governing criminal history use, credit checks, and compensation practices.

Employers obtaining consumer reports must comply with federal FCRA requirements, including disclosure, written authorization, and adverse action procedures.

Criminal Record Reporting Rules

Illinois regulates the use of criminal records in employment primarily through the Illinois Human Rights Act rather than through consumer reporting restrictions.

Conviction Records

Illinois does not impose a state law lookback limit on reporting criminal convictions in consumer reports.

Under FCRA §605(a)(5), criminal convictions may be reported without time limitation unless another law restricts reporting.

However, Illinois law restricts how employers may rely on conviction records when making hiring decisions.

Illinois Human Rights Act

The Illinois Human Rights Act, codified at 775 ILCS 5/2-103.1, prohibits employers from automatically disqualifying applicants based on criminal convictions.

Before denying employment based on a conviction record, employers must determine whether:

1. there is a substantial relationship between the conviction and the job duties, or

2. hiring the individual would create an unreasonable risk to property or to the safety or welfare of individuals or the public.

Employers must consider several factors when making this determination, including:

• the nature and seriousness of the offense

• the time that has passed since the conviction

• the age of the applicant at the time of the offense

• evidence of rehabilitation.

Employers must also follow notice procedures before taking adverse action based on a conviction record.

Non-Conviction Records

Under the Fair Credit Reporting Act, consumer reporting agencies generally may not report arrests, indictments, or other non-conviction criminal information that is more than seven years old.

Illinois law also prohibits employers from inquiring about or using arrest records that did not result in conviction as a basis for employment decisions.

Sealed and Expunged Records

Illinois provides broad eligibility for criminal record sealing and expungement under 20 ILCS 2630/5.2.

Once a record has been sealed or expunged:

• it generally may not appear in employment background checks

• applicants may lawfully state that the arrest or conviction did not occur.

Employers should ensure background screening providers exclude sealed and expunged records from employment reports.

Fair Chance / Ban-the-Box Law

Illinois regulates criminal history inquiries through the Illinois Job Opportunities for Qualified Applicants Act, codified at 820 ILCS 75/1 et seq.

Employer Coverage

The law applies to public and private employers with 15 or more employees.

Criminal History Inquiry Timing

Employers may not inquire about criminal history until the applicant has:

• been selected for an interview, or

• received a conditional offer of employment if the employer does not conduct interviews.

Criminal background checks may be conducted after this stage.

Individualized Assessment

The Illinois Human Rights Act requires employers to conduct an individualized assessment before disqualifying applicants based on criminal convictions.

Notice Requirements

Before taking adverse action based on criminal history, employers must:

1. provide written notice of the preliminary decision,

2. provide a copy of the criminal history report if one was used, and

3. allow the applicant an opportunity to respond with mitigating information.

After considering the applicant’s response, employers must provide final written notice if they proceed with the adverse decision.

Credit Check Restrictions

Illinois restricts employer use of consumer credit reports under the Employee Credit Privacy Act, codified at 820 ILCS 70/1 et seq.

General Rule

Employers may not inquire into or use an applicant’s credit history unless a satisfactory credit history is a bona fide occupational requirement for the position.

Permitted Positions

Credit checks may be permitted for positions involving:

• financial institutions or banking roles

• access to confidential financial information

• fiduciary responsibilities

• managerial positions involving financial oversight

• positions required by law to obtain credit information.

Employers should carefully evaluate whether the role qualifies under one of the statutory exceptions before requesting a credit report.

Cannabis Use and Drug Testing Rules

Illinois legalized recreational marijuana under the Cannabis Regulation and Tax Act.

The law permits employers to maintain drug-free workplace policies and to prohibit employees from being impaired while working.

Employers may discipline employees for workplace impairment or violations of workplace drug policies.

Illinois law also recognizes lawful off-duty cannabis use, meaning employment decisions generally may not be based solely on lawful off-duty use unless another law or workplace safety rule applies.

Safety-sensitive positions and federally regulated workplaces may impose stricter drug testing policies.

Pay Equity and Salary History Rules

Illinois regulates compensation practices during hiring through the Illinois Equal Pay Act, codified at 820 ILCS 112/1 et seq.

Salary History Ban

Employers may not:

• ask applicants about wage or salary history

• require disclosure of wage history as a condition of employment

• screen applicants based on wage history.

Applicants may voluntarily disclose prior compensation after an offer has been made.

Pay Transparency

Illinois enacted statewide pay transparency requirements that require employers to disclose salary ranges and benefits information in job postings for positions that will be performed in Illinois.

These requirements generally apply to employers with 15 or more employees.

Local Fair Chance or Screening Ordinances

Several Illinois jurisdictions impose additional fair chance hiring requirements beyond state law.

Chicago

The Chicago Fair Chance Hiring Ordinance requires employers to delay criminal background checks until after a conditional job offer has been made.

Employers must also:

• conduct individualized assessments

• provide written notice of potential adverse decisions

• allow applicants an opportunity to respond.

Cook County

The Cook County Fair Chance Hiring Ordinance applies to most employers operating within the county.

Employers may not inquire into criminal history or conduct criminal background checks until after extending a conditional offer of employment.

Employers must also conduct an individualized assessment before denying employment based on criminal history.

Employers operating in Chicago must comply with both the Chicago ordinance and the Cook County ordinance.

Record Sealing / Clean Slate Laws

Illinois provides broad mechanisms for sealing and expunging criminal records under 20 ILCS 2630/5.2.

Recent reforms expanded eligibility for sealing and introduced processes for automatic sealing of certain non-violent offenses.

Sealed records generally may not be disclosed to most employers, and applicants may lawfully deny the existence of those records in most employment situations.

Employers should ensure background screening vendors exclude sealed and expunged records from employment reports.

Key Statutes

• Illinois Job Opportunities for Qualified Applicants Act — 820 ILCS 75/1 et seq.
• Illinois Human Rights Act (Conviction Record Use) — 775 ILCS 5/2-103.1
• Employee Credit Privacy Act — 820 ILCS 70/1 et seq.
• Illinois Equal Pay Act — 820 ILCS 112/1 et seq.
• Criminal Record Sealing and Expungement — 20 ILCS 2630/5.2

Employer Compliance Checklist

Employers conducting background checks in Illinois should adopt several compliance practices.

Delay criminal history inquiries until after an interview or conditional offer of employment.

Conduct individualized assessments before disqualifying applicants based on criminal convictions.

Provide written notice and allow applicants an opportunity to respond before taking adverse action based on criminal history.

Limit credit checks to positions that qualify under the Employee Credit Privacy Act.

Exclude sealed or expunged criminal records from employment background reports.

Avoid salary history inquiries and disclose pay ranges in job postings where required.

Comply with local fair chance ordinances in Chicago and Cook County when hiring in those jurisdictions.