Illinois Proposes Notice Rules for AI in Employment Decisions

Illinois would require employers using AI decision-making tools to give workers notice that includes how they’re using the technology and the kinds of data factored into decisions, under newly proposed amendments to civil rights regulations.

The state’s Department of Human Rights released the proposal on Friday, fleshing out the compliance expectations under an anti-discrimination law that already took effect Jan. 1.

The law and the proposal call for employers to give their employees and job applicants notice about their use of artificial intelligence tools in decisions such as hiring, promotions, discipline, and termination. Illinois enacted the underlying law in 2024, updating its civil rights statutes to clarify that employment bias resulting from the use of automated decision tools is illegal discrimination.

The requirements are similar to transparency-focused measures enacted in California, Colorado, and New York City that govern companies’ use of automated decision-making technologies. States have proposed and implemented disclosure-based rules for AI in hiring as other measures requiring tougher safeguards like bias audits have proved difficult to pass.

The Colorado law, which Gov. Jared Polis (D) signed May 14 to replace the closely watched 2024 algorithmic bias law, goes well beyond employment to also cover tools used in decisions affecting people’s access to education, financial or lending services, government services, health care, housing, and insurance.

The proposed Illinois regulations require that each job posting include a notice about AI tools used in hiring and recruiting. Businesses also must post notices on their websites and at physical worksites about using AI tools to decide on promotions or monitor and score employees’ performance. Friday’s first publication of the rule triggers an initial 45-day public comment period.

Notices must include information such as the technology developer’s name, the types of employment decisions and job positions for which the tools are used, the purpose of the AI system, and how to request a reasonable accommodation.