On January 1, 2026, an amendment to the Illinois Human Rights Act went into effect, making it unlawful for an employer to use artificial intelligence in employment related decisions if it has the impact of discriminating against a protected class as defined in the Human Rights Act. The amendment also put in place a requirement to notify employees and applicants of an employer’s use of artificial intelligence in several areas of employment. The state has proposed a sample notice, but it has not been finalized. Illinois Governor JB Pritzker signed this amendment in 2024.
The new amendment applies to all employers, regardless of size, that employ one or more individuals within Illinois for at least 20 weeks in the current or preceding calendar year. This includes employers based outside Illinois that hire Illinois residents. “Artificial intelligence” is defined as a machine-based system that uses inputs to generate outputs such as predictions, content, recommendations, or decisions influencing physical or virtual environments. Employers are responsible for any AI tool they use, even if developed by third-party vendors; this could include popular recruiting platforms such as LinkedIn, which uses AI tools to search for candidates.
An employer must inform employees and/or applicants when AI is used for decisions in the following categories.
- Recruitment and Hiring
- Promotion
- Renewal of Employment
- Selection for Training or Apprenticeship
- Discharge and Discipline
- Tenure
- Terms, Privileges, or Conditions of Employment
What should employers do to comply with this new amendment?
Start by examining the processes used in all the above areas to determine if AI is involved in assisting with decision making. Examples of AI would include automated resume screening, AI video interviews, game-based assessments or performance-management software enhanced with AI.
A sample notice and further direction from the state have not yet been finalized, so this is an area that is evolving. Miller Cooper will be providing updates to help employers stay informed so they can determine when and how applicants and employees should be notified of applicable uses of AI. But for now, employers should familiarize themselves with the new Illinois law and get a head start on understanding what AI they may be using in employment-related decisions, so that when the sample notice is available, they can quickly comply.
Clients with questions or in need of HR Assistance can contact Angela Adams, Client HR Services Consulting Manager, at aadams@millercooper.com.
