Nepotism laws in Illinois prohibit executive branch agency heads from hiring, promoting, or advocating for relatives, and require broad disclosure of family and financial ties by public officials. The rules come from Executive Order 12 (2018), the Illinois Governmental Ethics Act, and the State Officials and Employees Ethics Act, rather than a single standalone anti-nepotism statute. Private employers face far fewer restrictions, and nepotism by itself is not treated as illegal discrimination under the Illinois Human Rights Act.
Who Counts as a Relative
The State of Illinois Code of Personal Conduct defines “relative” broadly. The term covers parents, children, grandparents, grandchildren, siblings, legal dependents, aunts, uncles, first cousins, nieces, nephews, spouses, in-laws (parents-in-law, children-in-law, and siblings-in-law), step-relatives, and half-siblings. It also includes anyone who has stood in loco parentis to an employee, or for whom the employee has served in that role.1Illinois.gov. State of Illinois Code of Personal Conduct
Relationships by marriage count as much as blood relationships. A state agency head cannot hire a brother-in-law or step-child any more than a biological son or daughter, and the in loco parentis language captures foster parents and others who raised an employee without formal adoption.
What Executive Order 12 Prohibits
The core anti-nepotism rule for Illinois state government is Executive Order 12, signed in 2018, which applies to executive branch agencies under the Governor’s authority. Its restrictions go well beyond hiring.2Illinois.gov. Executive Order 12 – Executive Order to Eliminate Nepotism in State Government Hiring
- A state agency head cannot appoint, hire, promote, or advocate for the hiring or promotion of any relative into a position in any governmental body.
- A person cannot be hired or promoted if a state agency head who is their relative advocated for that action.
- No state employee may be placed in a relative’s direct line of supervision, evaluate a relative’s job performance, recommend a raise for a relative, participate in disciplining or dismissing a relative, investigate a relative’s alleged misconduct, or serve on an interview panel for a relative.
- Employees must disclose to their supervisor and ethics officer any participation in matters affecting a business entity if they and their relatives collectively hold more than 15 percent of the entity’s distributable income.
- State agency heads who file supplemental statements of economic interest must also disclose the names and positions of all relatives employed by, or serving as elected officers of, any governmental body.
The supervision restrictions are the piece that catches people off guard. Even when a relative was hired legitimately before the current official took the role, the order still bars that official from evaluating their work or recommending their pay. The duty is not just to avoid hiring relatives. It is to avoid any employment action colored by the relationship.
The most common defense against a nepotism finding is that the hiring process was open and the relative was the strongest candidate. That defense runs into a hard rule. Under Executive Order 12, an agency head simply cannot advocate for a relative, regardless of qualifications. The prohibition is on the act of advocacy itself, not on whether the relative deserved the job.
Disclosure Under the Governmental Ethics Act
The Illinois Governmental Ethics Act (5 ILCS 420) does not ban nepotism outright. It creates a transparency framework that makes hidden conflicts harder to maintain. A wide range of public officials and employees must file annual verified statements of economic interests, including members of the General Assembly, elected executive officials, judges, department heads, and employees who supervise state contracts of $5,000 or more or local contracts of $1,000 or more.3Illinois General Assembly. Illinois Governmental Ethics Act – Full Text
Filers must report assets worth more than $10,000, income sources exceeding $7,500, debts over $10,000, any registered lobbyist with whom they maintain an economic relationship or who is a family member, and any spouse or immediate family member employed by a public utility in the state.3Illinois General Assembly. Illinois Governmental Ethics Act – Full Text
The Act also restricts certain contracts. An appointed member of a state board, commission, or task force, together with their spouse and immediate family members living in their home, cannot hold or acquire a contract with the state that relates to that body, both during their term and for one year afterward.3Illinois General Assembly. Illinois Governmental Ethics Act – Full Text
Penalties for Violations
Consequences depend on which law was broken and how serious the conduct was.
Failure to File a Statement of Economic Interests
Penalties for missing the annual filing escalate quickly. Missing the May 1 deadline triggers a notice. Missing the May 15 deadline adds a $15 late fee. After May 15, the penalty rises to $100 per day. A filer who has not filed by May 31 forfeits the office or position. Willfully filing a false or incomplete statement is a Class A misdemeanor, punishable by up to $2,500 in fines, up to one year in jail, or both.3Illinois General Assembly. Illinois Governmental Ethics Act – Full Text
State Officials and Employees Ethics Act
The State Officials and Employees Ethics Act (5 ILCS 430) applies to ethics violations more broadly, including conduct tied to nepotism. Intentional violations of key provisions are a Class A misdemeanor. Other intentional violations are business offenses with fines from $1,001 to $5,000. The Executive Ethics Commission can also impose an administrative fine of up to $5,000 against anyone who violates the Act, obstructs an investigation, or files a false allegation. State employees who intentionally violate the Act are additionally subject to discipline or discharge.4FindLaw. Illinois Statutes Chapter 5 General Provisions 430/50-5
When the Office of the Executive Inspector General finds that someone violated the Ethics Act, it may request that the Attorney General file a formal complaint before the Executive Ethics Commission. If the Commission finds a violation, it can impose an administrative fine or order other appropriate relief.5Office of the Executive Inspector General. EEC Ethics Act Decisions
How to Report Nepotism in State Government
The Office of the Executive Inspector General (OEIG) accepts complaints from anyone, not just state employees, about misconduct by executive branch employees. Complaints can be submitted anonymously, though you need to provide enough detail for an investigation to move forward. The OEIG investigates fraud, abuse of authority, corruption, and other misconduct at executive branch agencies, boards, commissions, state public universities, and regional transit authorities.6Office of the Executive Inspector General. Complaint Process
The OEIG does not handle complaints about city, municipal, county, or federal employees, or employees of the courts or legislature. For nepotism in local government, you would need to contact that jurisdiction’s inspector general or ethics commission, where one exists.
Whistleblower Protections
Illinois law protects employees who report nepotism or other ethics violations. The State Officials and Employees Ethics Act (5 ILCS 430/15) specifically shields state employees who report wrongdoing, provide information about wrongdoing, or assist in enforcing the Ethics Act.7Illinois.gov. Whistleblower Protection
The broader Illinois Whistleblower Act (740 ILCS 174) adds another layer. An employer cannot retaliate against an employee who discloses, or threatens to disclose, information about an activity, policy, or practice the employee reasonably believes violates state or federal law. Protected disclosures include those to public bodies conducting investigations, law enforcement agencies, courts, and the employee’s own supervisors. An employee subjected to retaliation can bring a civil action and recover reinstatement, back pay with 9 percent annual interest, liquidated damages of up to $10,000, and a mandatory civil penalty of $10,000 payable to the employee, plus litigation costs and attorney’s fees.8Illinois General Assembly. Illinois Whistleblower Act 740 ILCS 174
When Nepotism Becomes Illegal Discrimination
The Illinois Human Rights Act (775 ILCS 5) prohibits employment discrimination based on race, color, religion, national origin, ancestry, age, sex, marital status, disability, military status, sexual orientation, pregnancy, citizenship status, work authorization status, and family responsibilities, among other characteristics.9Illinois General Assembly. Illinois Compiled Statutes 775 ILCS 5/2-102 Nepotism itself is not on that list. Favoring a relative because they are your relative is not, standing alone, an illegal act under the Human Rights Act.
Nepotism can still cross into illegal discrimination when the favoritism has a disparate impact on a protected group. If an agency head’s pattern of hiring relatives effectively excludes candidates of a particular race or gender, an affected candidate can file a charge with the Illinois Department of Human Rights. The IDHR cannot investigate complaints about general unfairness, personality conflicts, or political favoritism unless the conduct is tied to a protected characteristic. A charge with IDHR must be filed within two years of the alleged discriminatory act.10Illinois Department of Human Rights. Employment Charge Information
Private Employers and Local Government
Illinois has no statewide law prohibiting nepotism in private businesses. Executive Order 12 applies only to the executive branch of state government. A private company can generally hire, promote, and pay relatives however it chooses, provided it does not violate anti-discrimination laws in the process. Family-run businesses routinely employ relatives as part of their operational structure, and nothing in Illinois law prevents that.
The line moves for private entities that contract with the state. Those entities fall within the OEIG’s jurisdiction for misconduct complaints, and employers of any size remain subject to the Illinois Human Rights Act.
Local governments sit in a middle position. Illinois municipalities have authority under the Illinois Municipal Code to pass their own anti-nepotism ordinances, and many have done so. Some ban relatives from working in the same department. Others prohibit elected officials from hiring family members into any municipal position. If you work for or are applying to a local government position, check whether that municipality has its own anti-nepotism ordinance, because there is no single statewide standard for local employment.