Illinois Immigration and Work Eligibility Laws

Overview of Work-Eligibility Compliance

Every employer in the U.S. must comply with the Immigration Reform and Control Act (IRCA), which requires completion of Form I-9 for each new hire. The form must be retained for three years after hire or one year after termination, whichever comes later.

Employers may also use E-Verify, a federal system that confirms work eligibility. While optional at the federal level, some states—and Illinois in particular—have layered in unique compliance obligations, especially surrounding worker protections and anti-discrimination rules.

Immigration Reform and Control Act (IRCA) Compliance in Illinois

Does Illinois Law Differ From Federal IRCA?

Illinois mirrors federal IRCA requirements but goes further to protect workers from misuse of employment verification systems, especially E-Verify. Key differences:

• The Illinois Right to Privacy in the Workplace Act restricts how E-Verify can be used.
• Employers must provide certain notifications to workers when participating in E-Verify.
• Misuse or overuse of E-Verify can result in state penalties.

So while you’ll still follow the federal I-9 steps, be careful not to go rogue with verification processes—Illinois takes worker privacy and anti-discrimination seriously.

Common Employer Questions About IRCA in Illinois

Which I-9 documents are most frequently rejected? Common federal mistakes still apply—expired IDs, incorrect combinations, incomplete fields. Illinois doesn’t add or subtract from federal rules.

Can we accept a digital driver’s license? Nope. Federal law requires physical documents. Even if Illinois offers digital IDs, they aren’t valid for Form I-9 purposes.

How soon must the I-9 be completed for remote hires? Stick to the federal timeline: Section 1 by the first day, Section 2 within three business days.

Are photocopies of documents permitted? Yes, but if you choose to make copies of documents, you must do so consistently for all hires. Illinois does not require or prohibit copies beyond federal guidance.

Municipalities in Illinois With Additional IRCA-Related Requirements

There are no city- or county-level rules that alter I-9 requirements, but Chicago and Cook County do have enhanced anti-discrimination ordinances that may intersect with hiring and documentation practices.

E-Verify Requirements in Illinois

Is E-Verify Mandated Beyond Federal Law?

Illinois does not mandate E-Verify for private employers, even those with government contracts. However, public contractors may be required to enroll based on federal rules.

What’s more important: Illinois law regulates how E-Verify can be used.

• Employers must provide written notification to each employee of their participation in E-Verify.
• Employers cannot use E-Verify to screen applicants before hire.

The Right to Privacy in the Workplace Act and amendments to the Illinois Human Rights Act ensure that E-Verify is only used post-hire and fairly.

Common Employer Questions About E-Verify in Illinois

When must the E-Verify case be opened—hire date or start date? Federal standard applies: within three business days of the start date.

What do we do with a “Tentative Non-Confirmation”? Provide the required notice to the employee and allow them to contest. Illinois law further requires employers to avoid any retaliation or premature action.

How are remote workers handled? Use a designated agent or notary to complete Section 2. Illinois doesn’t restrict this, but ensure E-Verify is used only after hiring.

Are there civil vs. criminal penalties for non-use? There are no penalties for not using E-Verify in Illinois. However, misuse of E-Verify—such as using it pre-hire or failing to notify employees—can lead to state investigations and fines.

Local E-Verify Ordinances in Illinois

There are no local mandates for E-Verify participation. However, localities may have worker protection laws that limit or guide how employers use verification tools. Chicago, for example, promotes inclusive hiring practices through local ordinances.

Visa & Employment Authorization Rules in Illinois

State-Specific Restrictions or Accommodations

Illinois does not impose any state-specific restrictions on employment-based visa holders. However, the state does:

• Allow undocumented immigrants to obtain temporary visitor driver’s licenses (TVDLs)
• Encourage inclusivity and fair access to professional licensing where federal law permits
• Support foreign medical professionals through Conrad 30 J-1 waivers for underserved areas

Common Employer Questions About Visa Sponsorship and EADs in Illinois

Can we file H-1B transfers for employees living out of state? Yes. Illinois has no limitations on federal visa portability.

Must we update payroll tax status when an EAD renews? Not under Illinois law. Just make sure the I-9 is updated accordingly.

Is there a state fee or notice requirement for foreign-worker layoffs? No. Illinois does not require special notices for foreign-worker layoffs. Comply with federal WARN Act rules.

Municipal Ordinances Affecting Visa/EAD Employment Eligibility

Some cities, like Chicago, have declared themselves welcoming or sanctuary cities, which may limit cooperation with federal immigration enforcement—but these ordinances do not affect hiring eligibility or I-9 practices.

Penalties for Non-Compliance in Illinois

Federal penalties for I-9 violations apply nationwide:

• $281 to $2,789 per form for paperwork errors
• Up to $27,894 per violation for knowingly hiring unauthorized workers

Illinois adds enforcement under:

• The Illinois Human Rights Act, for discriminatory hiring practices
• The Right to Privacy in the Workplace Act, for E-Verify misuse

Record-Keeping & Retention Guidelines

Follow the federal rules:

• Retain Form I-9 for three years after the date of hire, or one year after termination, whichever is later
• Keep E-Verify confirmations (if used) in employee files, ideally separate from personnel records

Illinois does not impose additional retention or storage requirements, but audits may review compliance with notice obligations.

Anti-Discrimination & Retaliation Protections

Illinois offers robust anti-discrimination protections, including:

• No document abuse under the Illinois Human Rights Act
• Protection against retaliation for asserting employment rights
• Prohibition on using E-Verify to prescreen candidates

Violations can result in investigations by the Illinois Department of Human Rights (IDHR) or lawsuits by affected employees.

Employer Best Practices for Immigration and Work Eligibility Laws in Illinois

• Avoid using E-Verify for pre-employment screening
• Provide written E-Verify notifications to employees
• Store I-9 and E-Verify records securely and separately
• Train hiring teams on Illinois anti-discrimination requirements
• Conduct regular internal I-9 audits

How WorkforceHub Simplifies Immigration and Work Eligibility Compliance

WorkforceHub gives Illinois employers peace of mind by:

• Guiding you through I-9 completion with real-time error checking
• Providing E-Verify submissions that comply with Illinois privacy rules
• Storing documents in a secure, access-controlled vault
• Sending automated alerts for expiring work authorizations
• Generating custom compliance reports for audits or investigations

See a demo to learn how WorkforceHub helps Illinois employers stay compliant, organized, and protected from risk.