A new law signed into effect by Illinois Governor J.B. Pritzker will affect the use of AI in workplaces. Starting in 2026, Illinois employers will be required to provide notice to applicants and workers if they use AI during hiring, discipline, discharge, or other workplace-related processes. This will also prohibit potential workplace discrimination based on AI.
How AI is Defined By the Law
With the recent amendments (HB 3773), AI has a very broad definition. AI includes any machine system that offers predictions, content, recommendations, or decisions based on input received. It also includes generative AI—think ChatGPT results.
Prohibiting Discrimination
Even though unintentionally, AI cannot be used to discriminate against any protected class covered by Illinois state law. This includes race, color, religion, national origin, ancestry, age, sex, marital status, order of protection status, disability, military status, sexual orientation, pregnancy, unfavorable discharge from military service, citizenship status, or work authorization status.
Additionally, this also includes zip code discrimination. Employers cannot indirectly discriminate against protected classes by targeting or excluding applicants or employees based on their geographic location.
Employment Areas Covered
AI discrimination will affect recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.
AI Use Notice
Starting January 1, 2026, employers must notify applicants or employees if AI is used in any employment process.
Further Details and Clarification to Come
Requirements like circumstances, conditions, timing, content, and delivery method are expected to be issued prior to the effective date. The Illinois Department of Human Rights also has the authority to adopt clarifying rules necessary to implement and enforce the new law.
Violation Consequences
The law will be enforced by the Illinois Department of Human Rights and the state’s Human Rights Commission in 2026. Anyone who believes they have faced violations can file administrative charges. This will lead to private lawsuits and remedies available under the discrimination law.
Illinois Video Interview Law
In 2020, Illinois passed a law requiring employers to obtain consent if AI was going to be used to analyze video job interviews. The HB 3773 amendment works hand-in-hand with that law.
Other States Regulating Workplace AI
Colorado was the first state to prohibit AI discrimination in the workplace. Their law also will begin to take effect in 2026. Another state makes anti-AI waves in New York. In New York City, employers are required to take steps to prevent AI bias in the workplace. Although Illinois, Colorado, and New York have passed these anti-AI laws, California could not pass a similar law this legislative term.
How Illinois Employers Can Prepare Now
To prepare for the effective date of January 1, 2026, there are various things employers can do.
First, begin auditing AI systems. Remember, although AI discrimination might be unintentional, it could still get your business in trouble. As you do this, work closely with AI vendors. Make sure to develop a list of questions that will help avoid any liability.
As more information becomes available, update your policies and handbooks to reflect the changes. Also, train all managers and supervisors involved in hiring to know and understand the new law.