Can I use third-party HR tools that collect personal information in Illinois? What are the requirements?

Requirements for Using Third-Party HR Tools in Illinois

If you are using third-party HR tools that collect personal information in Illinois, you must comply with the state’s privacy laws. The Illinois Personal Information Protection Act (PIPA) requires companies to implement reasonable security measures to protect personal information, including employee data ^[1.4].

Under PIPA, companies must obtain written consent from employees before collecting, using, or disclosing their personal information ^[1.4]. Additionally, companies must provide employees with notice of the types of personal information collected, the purposes for which it is collected, and the third parties with whom it may be shared ^[1.4].

If you are using a third-party HR tool, you should ensure that the tool provider is also compliant with PIPA and other relevant privacy laws. You may also want to consider implementing additional security measures, such as encryption and access controls, to protect employee data ^[1.4].

Source(s):

• [1.4] Limits on Redisclosure and Reuse of Nonpublic Personal Financial Information

Jurisdiction

Illinois

• Privacy