In a significant step in regulating artificial intelligence (AI) in the workplace, the Illinois legislator Illinois Human Rights ACT (IHRA or the Law “) to manage the growing use of AI at various points throughout the work process.

According to House Bill 3773, as of January 1, 2026, Illinois will protect prospective and current employees from discriminatory AI methods during recruitment, employment, marketing, renewal of employment, selection for education or apprentice, discharge, discipline and service and the conditions, privileges and terms of employment. The amendment also prohibits the use of postal code as a proxy for protected classes.

In view of changes, employers must notify employees of the use of AI at any of these points of contact throughout the employment process. However, the amendment does not provide specific message requirements or prescribes confirmation measures that employers must take to prevent discriminatory results as a result of using AI. Rather, the amendment simply says that the Illinois Department of Human Rights (IDHR) will adopt rules to implement and execute these new standards on an undefined future date.

Illinois has remained at the forefront of the workplace AI regulation since he passed Illinois Artificial Intelligence Video Interview Act 2019, which requires employers to reveal and gain consent for the use of AI when analyzing video interviews. Since this time, a growing number of cities and states have joined Illinois to extend regulations governing the use of AI in the work process. By the side of Illinois, Colorado adopted a similar law that required employers to use “reasonable care” to protect Colorado residents from known or predictable risks for “algorithmic discrimination.” New York City Has also adopted legislation that requires employers to implement “partial audit” within one year of the use of AI tools and provide certain messages to employees or prospective candidates.

Employers should extensively evaluate their employment process and algorithms to determine whether and how AI is used to evaluate prospective and current employees’ information at any time throughout the work process.