Illinois' Department of Human Rights has issued regulations governing how employers use artificial intelligence in employment decisions under amendments to the Illinois Human Rights Act.
Jan. 1, 2026 marked the rules' effective date, making the state requirements already operative for hiring and other workplace decision-making systems.
The regulations extend Illinois' human-rights framework into AI-driven employment practices, signaling closer scrutiny of automated decision tools used by employers.
Will Illinois's strict AI hiring law survive the push for a single national standard?
Illinois now requires AI disclosure, but can job seekers prove an algorithm unfairly rejected them?
Illinois’ 2026 AI Employment Law: Key Compliance Steps, Anti-Discrimination Mandates, and National Implications
Overview
Illinois has taken a leading role in regulating artificial intelligence in employment with Public Act 103-0804 (HB3773), which became effective on January 1, 2026. This law amends the Illinois Human Rights Act to prevent discrimination from AI tools, especially against protected classes. It broadly prohibits using AI in hiring decisions if it leads to discrimination and specifically bans using zip codes as a proxy for protected groups. Employers must now clearly disclose their use of AI in employment decisions, ensuring transparency and fairness as they audit and monitor their systems to comply with these new anti-discrimination rules.