Illinois Now Requires Employers to Disclose the Use of AI for Employment-Related Decisions
As of January 1, 2026, the Illinois Human Rights Act has undergone significant amendments mandating that employers must disclose the use of artificial intelligence (AI) in any employment-related decisions. This includes critical processes such as hiring, promotion, and discipline.
Definition of AI Under the Illinois Human Rights Act
The definition of AI within this Act is notably broad. It encompasses machine-based systems that can infer from inputs to generate outputs such as predictions, recommendations, or decisions that influence both physical and virtual environments. Additionally, it includes generative AI technologies that produce outputs simulating human-generated content. This definition necessitates that employers meticulously assess any software or tools employed in employment contexts that may include AI components.
Notification Requirements for Employment-Related Decisions
Under the amended Act, employers are now required to notify employees about the use of AI in various employment-related decisions, which consist of:
- Recruitment
- Hiring
- Promotion
- Renewal of Employment
- Selection for Training or Apprenticeship
- Discharge
- Discipline
- Tenure
- Terms, Privileges, or Conditions of Employment
This broad scope implies that any use of AI in these decisions, regardless of the magnitude of its influence, must be disclosed. Failing to provide such notification may lead to a civil rights violation under the Illinois Human Rights Act.
Prohibition of Discrimination Based on Protected Classes
The amendments also prohibit the use of AI in employment-related decisions that could lead to discrimination based on a protected class or zip code, particularly when the latter is used as a proxy for a protected class. The protected classes identified in the Illinois Human Rights Act include:
- Race
- Color
- Religion
- National Origin
- Age
- Sex
- Marital Status
- Disability
Regulatory Oversight
The Illinois Department of Human Rights is tasked with establishing rules that pertain to the conditions under which notification is required. This includes defining the relevant time frame and methods for providing such notifications.
In conclusion, the amendments to the Illinois Human Rights Act signal a significant shift towards greater transparency and accountability in the use of AI for employment decisions, ensuring that employees are informed and protected against potential biases.
