As artificial intelligence (AI) becomes more widely used in hiring and employment decisions, Illinois has taken a significant step to regulate how employers must inform workers about AI’s use. Effective January 1, 2026, House Bill 3773 amended the Illinois Human Rights Act (IHRA) to require, among other things, employer notice when AI influences or facilitates employment decisions. According to reporting from the National Federation of Independent Business, the Illinois Department of Human Rights (IDHR) discussed at a recent stakeholder meeting draft rules to implement the notification requirement. See Subpart J — Use of Artificial Intelligence in Employment.
When Notice Is Required — And When It Isn’t
Under draft Subpart J, notice would be required whenever an employer uses AI to influence or facilitate any “covered employment decision.” A covered employment decision means:
a decision with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.
The draft rules make clear that notice would be required regardless of whether the AI’s use has discriminatory effects — meaning even if the employer believes the technology is fair or unbiased, the notice obligation would still applies.
Examples that would trigger the notice requirement include:
- Computer-based assessments, skills tests, or personality quizzes used to predict employee outcomes;
- Resume screening or ranking by AI;
- AI evaluation of facial expression, voice, or text in interviews;
- Targeted job advertising driven by AI;
- AI analysis of third-party data about workers or candidates.
Notice would not be required when an employer uses AI for general business tasks unrelated to influencing or facilitating covered employment decisions. For example:
- Using AI to draft marketing content or internal reports;
- Standard word processing, spreadsheets, firewalls, anti-spam systems, or other tools that do not infer, generate, or influence employment decisions as defined.
When To Provide Notice
Timing matters, and the rules would distinguish between current and prospective employees:
- For current employees, notice must be provided annually, and within 30 days after adopting or making substantial updates to an AI system used for covered decisions.
- For prospective employees, as part of the job notice or posting.
These timing requirements aim to ensure transparency throughout the AI adoption lifecycle.
How Employers Must Provide Notice
The draft regulations specify multiple methods to maximize employee awareness and reduce the risk that workers or applicants miss the disclosure:
- Inclusion in employee handbooks, manuals, or policy documents;
- Posting in conspicuous physical locations where employer notices are typically displayed;
- Posting on an employer’s intranet or external website where the employer customarily posts notices to prospective or current employees, including a conspicuous link on the homepage; and
- Included with any job notice and posting
What the Notice Must Include
Subpart J’s draft content requirements for notice would go well beyond a simple “yes/no” that AI is used. Required elements would include:
- The AI system’s product name and, if applicable, developer or vendor;
- Which covered employment decisions the AI system influences or facilitates (e.g., hiring, discipline);
- The purpose of the AI system and the categories of personal information or employee data processed;
- The types of job positions the AI tool will be used for;
- A contact person — typically an HR representative — who can answer questions about the system and its use;
- How to request a reasonable accommodation related to the AI use; and
- Language from 775 ILCS 5/2-102(L) of the IL Human Rights Act.
Accessibility Requirements
Notably, the draft rules emphasize that notices must be accessible:
- Plain language and a readable format;
- Availability in languages commonly spoken by the employer’s workforce;
- Reasonable accessibility for employees with disabilities.
This accessibility focus aligns with broader non-discrimination goals and reinforces meaningful notice beyond mere disclosure.
Context: Statute and Federal AI Policy
The notice requirement stems from Illinois’ 2024 amendments to the Human Rights Act in HB 3773, which added AI use to nondiscrimination protections and included a statutory notice mandate without detail — leaving specifics to IDHR regulations.
Other jurisdictions like Colorado and New York City also regulate AI and automated tools used in hiring — though Illinois’ approach stops short of mandatory bias audits or impact assessments.
At the federal level, the regulatory landscape is shifting. A December 2025 Executive Order (EO) titled Ensuring a National Policy Framework for Artificial Intelligence directs the U.S. Attorney General to establish an AI Litigation Task Force that will evaluate and potentially challenge state AI laws deemed “inconsistent” with federal policy.
Conclusion
Illinois’ draft Subpart J notice rules would establish a comprehensive, detailed disclosureframework for employers using AI in covered employment decisions — aiming for informed consent and transparency across the workforce.
However, with federal policy now pushing toward a national AI regime, state laws like Illinois’ may increasingly be scrutinized or even litigated in the coming years. Staying ahead of both state notice requirements and the evolving federal policy environment will be critical for employers using AI in hiring and workforce decisions.