Illinois Department of Human Rights Withdraws Proposed AI in Employment Rules

Overview

On June 2, 2026, the Illinois Department of Human Rights (IDHR) withdrew and postponed its proposed AI employment rules. The proposed rules had been issued May 15, 2026 to implement HB 3773, effective January 1, 2026. While rulemaking is paused, statutory obligations remain in effect.

Current Legal Framework

Illinois law prohibits discriminatory AI in employment and requires employers, with one or more Illinois employees, to give notice to applicants and employees when AI is used in employment decisions such as Claude, ChatGPT, Grok, CoPilot, or Gemini. These obligations apply broadly across hiring, promotion, discipline, performance reviews and termination decisions, and failure to provide notice to the employee or applicant that it is using AI in an employment decision is a violation. The law also authorizes the IDHR to issue regulations clarifying compliance requirements.

Status of Proposed Rules

The proposed Subpart J rules addressed notice content, timing, and recordkeeping. The rules were rather onerous and required disclosure of: (1) the AI system's developer, product name, and vendor; (2) the covered employment decision it influences; (3) the system's purpose and categories of data collected; (4) the types of job positions the tool will be used for; (5) a point of contact for questions; and (6) the right to request a reasonable accommodation. However, the IDHR canceled the public hearing scheduled for June 10, 2026 hearing and no new timeline has been provided.

Practical Impact

Employers must continue complying with statutory requirements despite uncertainty regarding implementation details, including providing notice of AI use and recordkeeping expectations.

Recommended Actions

Employers should inventory the AI tools being used, implement interim notice practices, document decision-making and oversight, and monitor the IDHR for future developments.

Bottom Line

The withdrawal represents a pause in the rulemaking process, not a rollback on the law. Employers should assume enforcement risk exists and prepare for future rules requiring enhanced transparency and documentation.