Key Takeaways
Impacted Employers: Illinois employers covered by the Illinois Human Rights Act.
Effective Date: January 1, 2027
Summary: Illinois has enacted legislation that generally prohibits disparate impact discrimination (policies or practices that appear neutral but have a disproportionate adverse impact on certain protected individuals).
Next Steps: Illinois employers should review screening, selection, and other employment practices. More detailed next steps can be found below.
The Details
Under Illinois law, employers may not use employment criteria or methods that have the effect of subjecting individuals to discrimination based on:
- State-protected characteristics, such as race, color, religion, national origin, ancestry, age, sex, marital status, order of protection status, disability, military status, sexual orientation, pregnancy, reproductive health decisions, or unfavorable military discharge
- Citizenship status
- Family responsibilities
- Work authorization status
- Arrest records
- Conviction records
These criteria or methods are considered unlawful if:
- The employer cannot demonstrate that the criteria or methods are job-related for the position and consistent with business necessity; or
- The employer demonstrates that the criteria or methods are job-related and consistent with business necessity, but the applicant or employee demonstrates that the business necessity could be served by an alternative employment practice with a less discriminatory effect.
For example, a blanket rule excluding anyone with a criminal conviction may disproportionately affect certain protected groups and may violate the law if the employer cannot demonstrate that the rule is job-related and consistent with business necessity, or if the same business need could be served by another practice with a less discriminatory effect.
The law also revises the definition of “unlawful discrimination” to include discrimination occurring “whether by purpose or effect,” expressly recognizing disparate-impact claims under the Illinois Human Rights Act.
Next Steps
Illinois employers should:
- Inventory employment policies, screening criteria, selection procedures, and workplace tools, and review them with legal counsel if necessary.
- Avoid using overbroad exclusions, such as blanket disqualification rules that aren’t tailored to the job.
- Document job-related reasons and business necessity for each screening or selection rule.
- Review background-check practices to ensure criminal-history criteria are appropriately tailored.
- Train managers to understand that neutral rules may still create risk if they disproportionately affect protected groups.
- Assess vendor-supported tools, such as applicant tracking systems, screening platforms, assessments, and automated decision tools, to understand what criteria are being used and whether they are job-related and supported by business necessity.