Illinois’ Proposed Notice Rules for Complying with Workplace AI Anti-Discrimination Law

On May 15, 2026, the Illinois Department of Human Rights (“IDHR”) announced proposed regulations (the “Regulations”) that address required employer notification arising from the use of AI to make employment decisions.

The publication of the Regulations in the Illinois Register triggered a 45-day public comment period that ends on June 29, 2026.

The Regulations are based on Illinois HB 3773, which are the August 2024 amendments to the Illinois Human Rights Act that expressly regulate the use of AI for employment decisions such as recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the “terms, privileges, or conditions of employment” where the AI has the effect of discriminating on the basis of protected classes. HB 3773 instructed the IDHR to adopt “any rules necessary for the implementation and enforcement” of the amendments, including, but not limited to, “rules on the circumstances and conditions that require notice, the time period for providing notice, and the means for providing notice.”

As we previously reported, a few weeks before HB 3773’s January 1, 2026 effective date, the National Federation of Independent Business reported that the IDHR had discussed draft rules (see Subpart J – Use of Artificial Intelligence in Employment) to implement the notification requirement with stakeholders. Although the IDHR did not formally publish its draft rules at that time, its published Regulations are mostly consistent with the draft rules, except the Regulations now require an employer to provide notice to an employee’s bargaining representatives and permit an employer to exclude from the notice trade secrets or other information legally protected from disclosure.

Obligation to Provide Notice

As with the draft rules, the Regulations’ trigger remains broad. Employers must provide notice to employees whenever they use AI to “influence or facilitate” a “covered employment decision.” “Covered employment decisions” still track the IHRA’s regulated employment activities, such as decisions related to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure or “the terms, privileges, or conditions of employment.” Further, the Regulations still require employers to provide notice regardless of whether their use of AI has the purpose or effect of unlawful discrimination.

The following is a non-exhaustive list of potential instances that require notice:

1. Computer assessments with questions, puzzles, games or challenges, used with the purpose to:
   1. Make predictive assessments about a prospective or current employee;
   2. Measure a prospective or current employee’s skills, dexterity, reaction-time, or any other mental or physical abilities or characteristics;
   3. Measure a prospective or current employee’s personality traits, aptitude, attitude, or cultural fit; or
   4. Screen, evaluate, categorize, or recommend prospective or current employees.
2. Job advertisements or other recruitment materials directed to specific targeted groups, areas, or populations;
3. Resume screening;
4. Analyzing facial expressions, word choice, or voice in online interviews, videos, or interview transcripts;
5. Analyzing third party data regarding prospective or current employees.
6. Measuring, monitoring, or evaluating any form of productivity, performance, accuracy, or compliance to generate scores, ratings, or flags used in disciplinary action; or
7. Assigning work tasks, schedules, or assignments that factor into an employee’s compensation, bonuses or benefits.

Like the draft rules, the Regulations identify instances where employers need not provide notice, including when the employer uses AI for “other business operation purposes” that do not “influence or facilitate” a “covered employment decision.” These include:

1. AI used for any other business operations purposes, such as designing a job posting, or generating promotional material.
2. Using an automated computer system that does not qualify as AI as defined in the IHRA, such as word processing, graphic design software, spreadsheet software, that does not generate outputs that influence or facilitate a covered employment decision.

Timing of Notice

The timing of providing notice remains unchanged. Under the Regulations, employers must provide the notice to employees annually and within 30-days of adopting a new or substantially updated AI used for covered employment decisions. Employers must also provide notice as part of a job notice or posting.

Means for Providing Notice

The Regulations, like the draft rules, identify several ways that employers may comply with their obligation to provide notice, including:

1. Employee handbook, manual, or other policy document.
2. A physical location clearly located where employer notices are typically posted.
3. An electronic or website location clearly located where employer notices are typically posted virtually.
4. In any job notice or posting.

Notice Content

Pursuant to the Regulations, the notification must include:

• Identification of the developer, product name, and vendor of the AI.
• The employment decision the AI is influencing or facilitating.
• The purpose of the AI in the employment decision.
• Categories of personal information or data collected.
• The type of job positions for which the AI is implemented.
• Contact information for questions.
• Information on the right to request a reasonable accommodation.

Importantly, the notice must be in plain language, in a readable format, available in languages commonly spoken by the employer’s workforce, and be reasonably accessible to employees with disabilities.

Employer Takeaways

As with the draft rules, it is possible that the IDHR will make changes following the 45-day public comment period. It also continues to remain unclear whether the Trump Administration’s efforts to federalize AI regulations will have any effect on state laws like Illinois HB 3773 or the IDHR’s Regulations. Nevertheless, employers that are using or considering using AI to “influence or facilitate” a “covered employment decision” should begin taking steps to implement the Regulations’ notice requirements to get a head start on compliance.

EBG attorneys continue to actively monitor AI legal developments and have considerable experience guiding companies in the areas of AI compliance, as well as litigating AI-related policy and impact matters. Please contact your EBG attorney for more information.

Noah Sergio, a 2026 Summer Associate (not admitted to the practice of law) in the firm’s New York office, contributed to the preparation of this post.