Illinois now requires employers to disclose the use of AI for employment-related decisions
As of January 1, 2026, the Illinois Human Rights Act was amended to require employers to disclose the use of artificial intelligence (AI) for any employment-related decisions, including hiring, promotion, or discipline. In addition to this notice requirement, the amendments prohibit the use of AI that has the effect of subjecting employees to discrimination on the basis of protected class or zip code.
AI under the Illinois Human Rights Act
The Illinois Human Rights Act defines AI very broadly to include machine-based systems that infer from input how to generate outputs such as predictions, recommendations or decisions that can influence physical or virtual environments, and generative AI that can produce outputs that simulate human-produced content. Therefore, employers should diligently review any software or tools utilized for employment-related purposes that may have integrated AI elements.
Notification requirements for employment-related decisions
The Illinois Human Rights Act now requires employers to disclose to employees the use of AI for employment-related decisions. Specifically, such employment-related decisions include:
- Recruitment
- Hiring
- Promotion
- Renewal of employment
- Selection for training or apprenticeship
- Discharge
- Discipline
- Tenure
- Terms, privileges, or conditions of employment
Notably, the amendments appear to broadly encompass the use of AI in relation to employment-related decisions, regardless of how minimal or significant its effect is on the decision. Failure to provide notice of such AI use to employees may constitute a civil rights violation under the Illinois Human Rights Act.
Discrimination on the basis of a protected class or zip code
The use of AI for employment-related decisions that has the effect of discrimination on the basis of a protected class or zip code, when used as a proxy for a protected class, is prohibited under the Illinois Human Rights Act. Among others, the protected classes under the Illinois Human Rights Act include race, color, religion, national origin, age, sex, marital status, and disability.
The Illinois Department of Human Rights is responsible for adopting rules relevant to the circumstances and conditions that require notice under this Act, along with the relevant time period and means for providing notice.
If you have questions concerning your company’s compliance with AI regulations, contact a member of McDonald Hopkins’ national data privacy and cybersecurity team.
