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Employment Law Spotlight

Illinois Proposes Specific Notice Requirements for Employers Who Use AI in Hiring and Employment Decisions

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On May 15, 2026, the Illinois Department of Human Rights (IDHR) <a href="https://dhr.illinois.gov/about-us/legislative-updates/artificial-intelligence-in-employment.html" target="_blank" rel="noreferrer noopener">introduced proposed</a> regulations that would specify how employers must give notice to workers when they use artificial intelligence (AI) in hiring or employment decisions.

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<a href="https://www.ilga.gov/Legislation/publicacts/view/103-0804" target="_blank" rel="noreferrer noopener">Public Act 103-084</a>, which went into effect on Jan. 1, 2026, as part of the Illinois Human Rights Act (Act), requires employers to give notice to workers when using AI “with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.” It also establishes civil rights violations against employers whose use of AI in employment decisions “has the effect of subjecting employees to discrimination” based on protected class or ZIP code. However, the legislature delegated authority to the IDHR to promulgate regulations fleshing out the notice requirement. These newly proposed amendments broadly instruct when notice would be required and what information employers would need to include.

Using computer-based assessments for measuring a worker’s aptitude or personality, screening resumes, directing job advertisements to targeted groups, analyzing data received from third parties concerning prospective or current employees, and monitoring productivity are some examples outlined in the proposed regulations that would trigger required notice requirements.

For prospective hires, employers that use AI in covered employment decisions would need to provide notice of that in the job posting. For current employees, the employer would be required to provide notice of AI usage – on an annual basis and within 30 days of adopting any new AI solution – in the employee handbook, manual or policy document and at a “conspicuous location” both on the employer’s website and at a physical location where the organization’s notices are usually posted.

The notice would need to specify which AI system is being used, for which positions it is being used and which covered employment decisions the technology is influencing, such as hiring or discipline. The notice would also have to explain which personal data it is analyzing and why, such as summarizing resumes or evaluating video interviews. Employers would need to provide contact information for hiring managers or human resources specialists to or from whom workers could direct questions or request reasonable accommodations.

The notices would have to be written in plain language and be reasonably accessible to workers with disabilities. Employers would have to provide notice on an annual basis and within 30 days of implementing a new system.

In general, the proposed amendments would not require notice if the employer does not use AI to “make, influence or facilitate” a covered employment decision. For example, notice would not be necessary if an employer uses AI for other purposes, such as for designing a job posting or generating text or images for promotional material. Similarly, notice would not be triggered if an employer used an automated computer system, such as word processing software or web hosting, that does not constitute AI as defined in the Act.

Members of the public have 45 days to review and submit comments on the proposals. A public hearing is scheduled for June 10, 2026, which will be held virtually and in person. Written comments are due Monday, June 29, 2026.

It is important for Illinois employers to monitor the progress of these proposed regulations and to be ready to implement any changes to their current AI notices that may be needed once a final version is promulgated.

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Announcement from Illinois Department of Human Rights: <a href="https://dhr.illinois.gov/about-us/legislative-updates/artificial-intelligence-in-employment.html" target="_blank" rel="noreferrer noopener">https://dhr.illinois.gov/about-us/legislative-updates/artificial-intelligence-in-employment.html</a>

Public Act 103-0804: <a href="https://www.ilga.gov/Legislation/publicacts/view/103-0804" target="_blank" rel="noreferrer noopener">https://www.ilga.gov/Legislation/publicacts/view/103-0804</a>

Illinois Register: <a href="https://www.ilsos.gov/departments/index/register.html" target="_blank" rel="noreferrer noopener">https://www.ilsos.gov/departments/index/register.html</a>

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