States Expand Employee Privacy and Immigration-Related Workplace Obligations

Illinois and California enacted new laws that significantly reshape employer obligations relating to employee privacy, work authorization issues, and immigration-related workplace notices, building on state-level approaches previously adopted in states such as Oregon. Amendments to Illinois’s Right to Privacy in the Workplace Act are already in effect, while California’s Workplace Know Your Rights Act will impose new notice and recordkeeping obligations beginning in early 2026. Employers with employees in either state should take steps now to ensure that policies, onboarding materials, and human resources practices align with these requirements.

Illinois: Expanded Employee Privacy and Work Authorization Protections

Illinois recently amended its Right to Privacy in the Workplace Act to strengthen employee privacy protections and regulate how employers respond to concerns related to work authorization or identity documentation. These amendments reflect a clear legislative intent to limit employer action based on information obtained outside formal government processes and to ensure employees are afforded notice and an opportunity to respond before adverse employment action is taken.

Under the amended law, Illinois employers may not impose employment eligibility verification requirements beyond those mandated by federal law. This includes requesting additional documentation or subjecting employees to heightened scrutiny beyond the Form I-9 process. When an employer receives information from a federal agency or another entity that does not enforce immigration law, such as the Social Security Administration or the IRS (so called “no match” letters), and that information indicates a potential discrepancy in an employee’s work authorization or identity documentation, the employer must follow a defined process before taking any action. That process requires the employer, within five (5) business days, to provide the employee with written notice describing the issue, explaining the steps that will follow, specifying the timeframe for response, and affording the employee a reasonable opportunity to address or correct the perceived discrepancy.

The law also expressly prohibits retaliation against employees for exercising their rights under the Act, including termination, discipline, or threats based solely on unresolved discrepancies or an employee’s refusal to provide information beyond what federal law requires. As a result, Illinois employers must carefully evaluate how such concerns are identified, documented, and escalated internally to avoid premature or unlawful employment decisions.

California: Immigration-Related Workplace Notice Requirements

California’s Workplace Know Your Rights Act establishes new employer obligations related to immigration enforcement and employee notice requirements. Although the statute has already been enacted, its primary compliance obligations take effect in early 2026 and require affirmative action by employers.

By January 1, 2026, the California Labor Commissioner is required to publish a stand-alone model “Know Your Rights” notice explaining employee protections related to immigration enforcement and workplace rights. The notice will cover such topics as the right to receive notice of immigration-related inspections of Form I-9 or other employment records, protections against unfair immigration-related practices, and constitutional rights when interacting with law enforcement in the workplace. The notice must also advise employees of their rights to workers’ compensation benefits, the right to organize or engage in concerted activity, and any workplace-related legal developments deemed material by the Labor Commissioner, including constitutional protections such as due process and protections against unreasonable searches, seizures, and self-incrimination.

Employers must distribute this notice to all current employees by February 1, 2026, and thereafter provide it to new hires at the time of hire and annually. The notice must be delivered in the manner normally used to communicate employment-related information and must be received within one business day of transmission.

In addition, employers must maintain procedures allowing employees to designate an emergency contact and to authorize the employer to notify that individual if the employee is detained or arrested during working hours (at the worksite or while performing job duties away from the worksite), including in connection with immigration enforcement activity. Employers must provide existing employees and new hires the opportunity to make this designation and authorization no later than March 30, 2026.

Failure to comply with these requirements may subject employers to civil penalties and enforcement action by California state agencies. Accordingly, employers should begin preparing now by monitoring issuance of the Labor Commissioner’s model notice, updating onboarding and annual notice processes, and training managers and human resources personnel on appropriate responses to immigration-related workplace activity.

Developments in Other States

Washington and Massachusetts are considering, but have not yet enacted, comparable measures.  Washington state’s proposed legislation, the Immigrant Worker Protection Act, would require employers to notify employees when federal immigration agents are conducting inspections of employment authorization or related audits. Under the proposal, employers would have to alert workers about the results of the audit within 72 hours of receiving notice and could face penalties for non-compliance. Massachusetts is considering Senate Bill No. 2665, modeled in part on Illinois’s Right to Privacy in the Workplace Act, that would impose employee notice obligations tied to I-9 inspections and documentation discrepancies.

Key Takeaways for Employers

Although the Illinois and California laws address different subject areas, both reflect a broader trend toward increased employee notice, transparency, and procedural safeguards in the workplace. Employers operating in either state should promptly review employee handbooks, verification practices, onboarding materials, and internal response protocols to ensure compliance. Multi-state employers, in particular, should consider a coordinated compliance strategy to address overlapping obligations and reduce the risk of inconsistent implementation. If you have questions regarding how these developments apply to your organization, please contact one of Honigman’s Employment & Labor attorneys here.