Illinois Amends Human Rights Act to Address Employer Use of AI
On August 9, Governor JB Pritzker signed an amendment to the Illinois Human Rights Act (“IHRA”), which included explicit definitions of “Artificial Intelligence” and “Generative Artificial Intelligence” (“AI” and “GAI”). The legislation breaks ground as the first state employment privacy statute that creates a clear notice obligation on “Employers” and “Employment Agencies” to provide notice to employees and job applicants disclosing the employer’s use of AI and GAI in the talent acquisition and more generally the employment context.
In terms of their breadth, the definitions of AI and GAI are similar to Colorado’s AI Act and California’s proposed regulations. However, the application of the IHRA amendment is laser focused on proscribing the use of AI and GAI, where it has the effect of discriminating based on race, gender, sexual orientation, age, or other protected classes throughout the entire employment life cycle. The amendment has given the Department of Human Rights (“IDHR”) rulemaking authority, and all initial claims must be brought to the agency. There will also be a right to cure period of 30 days if the IDHR finds liability. This law is similar to a local law enacted by New York City’s Department of Consumer and Worker Protections earlier this year. The NYC law requires yearly bias audits before an employer or employment agency can utilize “Automated Employment Decision Tools.”
At this point in time, it is unclear if the IDHR will adopt additional transparency measures such as audits, but given the long implementation timeframe, it is likely that there will be an agency rulemaking ahead of the January 1, 2026 implementation date. In the meantime, the lawyers in Pierson Ferdinand’s Privacy and Data Security Practice group are available to assist you with an evaluation of your AI enabled data collection and handling practices. By tracking which tools and business processes are utilizing AI as it pertains to job applicants and employees, companies can adjust data governance practices and update notices and employee handbooks to prepare for the implementation of the amendment.
Elaine Critides elaine.critides@pierferd.com
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