Illinois Department of Human Rights Seeks Public Comment on Draft AI Employment Regulations

Last month, the Illinois Department of Human Rights (“IDHR”) released draft regulations addressing employers’ use of AI in employment decisions and invited public comment. The IDHR will hold a hearing on the draft regulations on June 10, and the public comment period will close on June 29.

Background

HB 3773 (the “Amendment”), which amended the Illinois Human Rights Act (“IHRA”), took effect on January 1, 2026. The Amendment clarifies that it is a violation of the IHRA for an employer to use AI in a manner that has the effect of subjecting employees to discrimination on the basis of protected classes in connection with covered employment decisions or to use of zip codes as a proxy for protected characteristics. The Amendment requires employers to provide notice when artificial intelligence is used in employment decision-making. However, it does not specify the content or form of that notice and leaves other key implementation questions unresolved, thus setting the stage for the IDHR’s long-awaited draft regulations.

Key Provisions

Below we summarize the key provisions of the draft regulations.

• Covered Employment Decisions. The draft regulations state that the Amendment would cover the use of AI in any “covered employment decision,” which is 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.

• Notice Requirements.
  • When Notice Is Required. The draft regulations would require employers to provide notice to applicants and employees when the employer uses AI to “influence or facilitate” a covered employment decision.
    • The draft regulations provide examples of when notice of AI use would generally be required, including:
      • When directing certain job ads or recruiting materials to targeted groups, areas, or populations;
      • Screening resumes for particular terms or patterns;
      • Measuring, monitoring or evaluating productivity or performance for the purpose of generating scores, ratings, or flags used in discipline or corrective action.
    • The draft regulations also provide examples of when notice of AI use would generally not be required, including:
      • When using AI for other business operations purposes and not for the purpose of making, influencing, or facilitating a covered employment decision or in ways that are “merely incidental” to the employment decision; and
      • When using a computer system that has distinguishable AI features or functionality, but the employer does not use such features to make, influence, or facilitate any covered employment decision.
  • Timing. Under the draft regulations, employers would need to provide notice to current employees and their exclusive bargaining representatives annually and within 30 days of adoption of a new or substantially updated product using AI for covered employment decisions. Employers would also need to provide notice to prospective employees as part of the job notice or posting.
  • Means for Providing Notice. The draft regulations provide that employers must provide notice by all of the following means, if applicable:
    • In any employee handbook, manual, or policy document;
    • In a conspicuous location on any physical premises where notices are customarily posted;
    • In any job notice or posting.
  • Content. According to the draft regulations, the notice must include certain information, including the developer, product name (if applicable), and vendor (if applicable) of the AI system; which covered employment decision the AI system is influencing or facilitating; the types of job positions the AI tool will be used for; a point of contact to whom questions about the system’s use can be directed; and specifying the right to request a reasonable accommodation and point of contact to make a request.
  • Accessibility. The draft regulations provide that the notice must be in a format that is readable, available in the languages commonly spoken by the employer’s workforce, and reasonably accessible to employees with disabilities.

• Preservation of Records. The draft regulations increase the retention period for applicant and employee records to three years (previously one year), and require employers to retain any notices, postings, and disclosures regarding the employer’s use of AI, and records of such use, for three years following such use.