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Illinois employers are reminded that a law addressing the use of AI in the workplace is set to take effect January 1, 2026.
It applies to employers, employment agencies, and labor organizations within Illinois that use AI for decisions like hiring, promotion, discharge, and other terms of employment. It applies to all employers, regardless of whether the company has a physical location in the state of Illinois. AI is defined broadly and includes not only generative AI but any machine-based system that generates outputs influencing employment decisions, with no specific exemptions provided.
The law generally requires two things for organizations using AI in employment related decisions:
- Avoid using AI that results in discrimination based on protected classes, such as race, gender, age, or disability; and
- Provide notice to employees when AI is used for employment decisions, explaining its purpose and the characteristics it assesses.
Putting it into Practice: Any organization using AI for employment purposes with Illinois employees should review current or planned AI practices for potential discriminatory outcomes and to confirm that necessary notices are in place. This includes the use of AI tools internally developed or offered by third party vendors. While the law does not require any creation of formal impact assessments, an AI governance policy to reflect these requirements and educating workforces on the proper use of AI in decision-making processes will help guide compliance. There is no private right of action for the law; the Illinois Department of Human Rights and the state's Human Rights Commission will be charged with enforcing the law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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