Last month, the Illinois Department of Human Rights (“IDHR”) released draft regulations addressing employers’ use of AI in employment decisions and invited public comment. The IDHR will hold a hearing on the draft regulations on June 10, and the public comment period will close on June 29.

Background

HB 3773 (the “Amendment”), which amended the Illinois Human Rights Act (“IHRA”), took effect on January 1, 2026. The Amendment clarifies that it is a violation of the IHRA for an employer to use AI in a manner that has the effect of subjecting employees to discrimination on the basis of protected classes in connection with covered employment decisions or to use of zip codes as a proxy for protected characteristics. The Amendment requires employers to provide notice when artificial intelligence is used in employment decision-making. However, it does not specify the content or form of that notice and leaves other key implementation questions unresolved, thus setting the stage for the IDHR’s long-awaited draft regulations.

Key Provisions

Below we summarize the key provisions of the draft regulations.

• Covered Employment Decisions. The draft regulations state that the Amendment would cover the use of AI in any “covered employment decision,” which is a decision with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.

• Notice Requirements....

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