Illinois Expands Employee Privacy Rights

On December 12, 2025, Illinois took a significant step to strengthen employee protections related to work authorization by enacting Senate Bill 2339. Given the increase in federal immigration enforcement, the state of Illinois adopted this measure to redefine employer obligations and safeguard workers from unfair employment actions based on potentially inaccurate or misused data. This bill took effect immediately and applies to both public and private employers statewide.

Specifically, SB 2339 amends the Right to Privacy in the Workplace Act by explicitly barring employers from imposing stricter employment authorization or re-verification standards than those required under federal law. It also prohibits employers from taking adverse actions—such as suspension or termination—based solely on federal agency notifications (like “no-match” letters) or third-party reports indicating discrepancies in employee identification documents.

Pursuant to new provisions, employers must now notify the affected employee in writing within five business days. When possible, this notice should be delivered in person and by hand; if not feasible, it must be sent via both mail and email. The notice must clearly outline the nature of the discrepancy, the timeframe for the employee to respond or challenge it, and the next steps in the process.

SB 2339 also enhances enforcement mechanisms by empowering labor unions and nonprofit organizations to initiate civil lawsuits as “interested parties.” Additionally, individual employees, job applicants, or their representatives may file lawsuits directly in Illinois courts. 

Penalties for violations range from $100 to $1,000 per violation, with remedies including reinstatement, back pay, and up to $10,000 in damages for job loss. Repeat offenses can result in fines of $1,000 to $5,000 per violation, along with attorney’s fees and other damages. No penalties will be imposed if an employer acted in good faith after consulting with the Illinois Department of Labor or the Department of Homeland Security, or if an honest administrative mistake did not impact an employee’s pay or job status.

Considering this new legislation, employers are encouraged to update their verification and notification procedures and stay informed through future guidance to ensure compliance.