While it may feel like a rollback of employment law compliance requirements and enforcement priorities at the federal level, state legislatures continue to enact and amend state employment laws. For employers asking, ‘what are the new Illinois employment laws for 2026?’ the answer is: quite a few. If you are in the process of understanding and implementing these statutory requirements, the following list is a helpful check-up.

Illinois Human Rights Act – Artificial Intelligence in Employment

Effective January 1, 2026, the Illinois Human Rights Act (IHRA) is amended to prohibit employers from using artificial intelligence (AI) that “has the effect of subjecting employees to discrimination on the basis of protected classes.” Illinois employers cannot use AI that has a discriminatory effect on employees 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. Additionally, the amended IHRA requires employers to provide notice to employees and applicants when using AI during any of the above-noted employment actions.

To Do: The Illinois Department of Human Rights (IDHR) has issued draft rules implementing HB 3773. While the rules are not yet finalized, the AI provision of the statute is effective, and employers must comply with the law. Therefore, take steps to ensure compliance now. The draft rules are not binding, but they serve as a...

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