Illinois AI law and your team
Illinois is one of the few states where an AI-in-employment law is already in force. If you have even one Illinois employee and AI touches hiring, promotion, discipline or who gets picked for training, you already have obligations, and employment lawyers generally recommend meeting them with a written policy and trained staff.
HB 3773 / Public Act 103-0804: the Illinois Human Rights Act AI amendment
- In force
January 1, 2026. Signed August 9, 2024; amends the Illinois Human Rights Act.
- Who is covered
Employers with one or more Illinois employees. There is no small-business exemption.
- What is banned
Using AI that subjects employees to discrimination on the basis of a protected class, and using ZIP codes as a proxy for a protected class.
- What is required
Notice to employees when AI is used in recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges or conditions of employment. Failing to give notice is itself a violation.
- Rules status
IDHR proposed notice rules on May 15, 2026 (50 Ill. Reg. 6794) and formally withdrew them on June 26, 2026 (50 Ill. Reg. 8755). As of our check on November 4, 2026 we found no adopted replacement, so there is no official notice template. The statute applies regardless.
The detail most people miss: “selection for training” is on the list. If a tool scores who gets upskilled, that decision is covered. The withdrawn draft rules are still the best guide to what IDHR expects a notice to contain: the tool, the decisions it influences, the data it uses, a contact, and plain language in the languages your workforce speaks. That is why we built the Illinois AI employment notice kit around them.
BIPA: voice and biometric data
The Biometric Information Privacy Act (740 ILCS 14) applies the moment a tool identifies someone by their voice, face or fingerprint: voiceprint caller ID, fingerprint time clocks, facial recognition on a door. Before collecting, a business must tell the person what is collected and why, state how long it is kept, and get a written release; since the August 2, 2024 amendment an electronic signature counts, and repeated collection of the same identifier by the same method is a single violation per person rather than one per scan. Damages are still $1,000 per negligent and $5,000 per intentional or reckless violation. Plain call recording and transcription is not biometric collection, but an AI phone agent that recognises callers by voice is, so we draw that line explicitly in your policy. Our guide to Illinois BIPA compliance for small businesses goes deeper.
The AI Video Interview Act
Since January 2020, an Illinois employer that uses AI to analyse recorded video interviews must tell applicants beforehand, explain how the AI works and what characteristics it evaluates, get their consent, share the video only with people whose expertise or technology is needed to evaluate them, and delete it within 30 days of a request. If your recruiter or applicant-tracking vendor offers “AI interview scoring”, this is the law that covers it.
What this means for a 5–200-person employer
- An AI inventory and written policywhich tools, used for what, by whom (HR tools included)
- A notice where AI touches employment decisionsapplicants and employees, in plain language
- Trained staffwho know the rules because they practised them
- A BIPA line in the policyif any tool identifies people by voice or face
- Recordsthe withdrawn draft asked for four years
- A review dateIDHR may still issue rules
Illinois does not mandate AI training. But the cheapest defensible compliance record is a policy, the notices it requires, and people who demonstrably follow it, and the workshops produce that record. The leadership session includes a 20-minute Illinois segment; the policy we draft includes an HB 3773 notice clause and a BIPA clause; HR gets the tool-inventory template from the notice kit. If you want to see the shape of the policy first, start with our AI acceptable use policy template.
This is general information from 312 IT Consulting, not legal advice. Confirm requirements with your employment counsel and program availability with the agency before relying on it. Sources are listed at the end of this page.