Illinois Drafts AI Hiring Rules, Requiring 3-Year Record Retention

3 articles · Updated · Inside Global Tech · Jun 4

Illinois' human rights agency issued draft rules spelling out when employers must notify workers and applicants that AI is being used in employment decisions, with a June 10 hearing and comments due June 29.
The proposal applies to AI that influences or facilitates recruitment, hiring, promotion, discipline and other covered decisions, including targeted job ads, resume screening and productivity scoring used for corrective action.
Employers would have to give notice in job postings, workplace postings and policy documents, and include the AI system's developer or vendor, affected job categories, decision type, contact person and accommodation rights.
The draft also requires notices to be accessible in commonly spoken workforce languages and to employees with disabilities, while extending retention of AI-related notices and records to 3 years from 1 year.
The rules aim to implement a Jan. 1, 2026 amendment to the Illinois Human Rights Act that bars discriminatory AI use and use of zip codes as a proxy for protected traits.

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Overview

Starting in June 2026, Illinois will implement new rules from the Department of Human Rights to regulate how employers use AI in hiring and employment decisions. These rules focus on transparency and fairness, requiring employers to notify individuals when AI is used and to keep detailed records about AI use for three years. The extended record retention aims to create a strong audit trail for oversight and accountability. By taking these steps, Illinois is proactively addressing the ethical and practical challenges of AI in the workplace, ensuring both employers and employees understand and can review how AI impacts employment decisions.

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