The state of Illinois faces a critical juncture in its approach to occupational licensing, particularly for low-to-moderate-income occupations. Occupational licensing laws prohibit people in Illinois from working in an occupation unless they meet required qualifications and receive official permission from the state. The General Assembly has recognized that occupational licensing requirements block or restrict people’s pathways to economic prosperity or even stability. The consequences are felt most by people who have been historically disadvantaged. Accordingly, the General Assembly commissioned this Task Force to investigate how occupational licensing of low-to-moderate-income occupations relates to economic inequities in Illinois and to recommend reforms. (See the list of occupations we studied in Appendix IV and the full Authorizing Statute in Appendix V.)

Our comprehensive review of available data confirms that the current licensing requirements, ostensibly designed to protect public health and safety, instead can unintentionally impose unnecessary and onerous barriers to entry into the workforce, disproportionately affecting poor and disadvantaged communities. Too often, poor Illinoisans face a quandary of whether to go into debt to pay for required training in order to enter a low-to-moderate-income occupation. Unnecessary restrictions and confusing procedures can discourage citizens with a history of involvement with the justice system from even trying to get a license. Illinois’ Department of Financial and Professional Regulation (IDFPR) does not have the resources to create efficient, user-friendly procedures online. As a result, the state loses opportunities for economic growth.

The stakes are high for Illinois, especially for historically disadvantaged people looking for a pathway to economic success. The state should be extremely cautious when placing barriers in the way of those citizens and should assess carefully – and reassess often – whether the barriers are necessary to protect the public. Yet, our task force could not find data to justify the costly burdens placed on people entering low-to-moderate-income occupations. IDFPR did not have access to much of the data that the task force was mandated to review “if available.” For example, the state does not collect data about how much training (like the 1,500 hours of training required to be a licensed barber or cosmetologist) costs, and the task force could not analyze whether the cost of training places undue burdens on applicants or compare it to quantified benefits that the public receives from the state’s restrictions on the occupation. In fact, the state does not systematically gather or analyze the data needed to validate the effectiveness of these requirements in safeguarding the public.

The task force was able to analyze data about IDFPR’s disciplinary actions related to licensed occupations in the low-to-moderate-income occupations. Disciplinary actions are very rare. When IDFPR does initiate a disciplinary action, it is most often an action required by statute to discipline licensees for being behind on taxes or child support.

This report is the culmination of over two years of research, analysis, and discussion by a diverse group of legislators, regulators, academic experts, practitioners in the fields of workforce development and re-entry for justice-involved individuals, and currently licensed professionals with lived experience of obtaining licensure in Illinois. The task force met as a whole in 16 meetings to share data, relate perspectives from areas of expertise, and to reach consensus on recommendations.