What is the new AI law in Illinois?

Effective January 1, 2026, amendments to Article 5, Section 2 of the Illinois Human Rights Act (the "IHRA") will prohibit employers from using AI that subjects employees to discrimination on the basis of a protected class.

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USLF Multistate Employment Law Handbook - Guide

Labor Employment Law With Ai In Illinois

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Employment - Handbooks

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US-002HB

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This Handbook provides an overview of federal laws addressing employer-employee rights and obligations. Information discussed includes wages & hours, discrimination, termination of employment, pension plans and retirement benefits, workplace safety, workers' compensation, unions, the Family and Medical Leave Act, and much more in 25 pages of materials.

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The new provision requires employers to notify an employee when it uses AI in “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.” The Act provides no detail about what specific types of ...

Effective January 1, 2026, amendments to Article 5, Section 2 of the Illinois Human Rights Act (the "IHRA") will prohibit employers from using AI that subjects employees to discrimination on the basis of a protected class.

To prepare them, organizations must adopt comprehensive reskilling and upskilling initiatives. This can help ensure the workforce can effectively capitalize on AI technologies. One strategy for upskilling is providing access to courses and certifications that train professionals in emerging technologies.

At the end of the day, the most important forms that you are going to have to submit include the I-9, W-4, IL-W-4, and W-9 forms. Once these are complete, your company has to keep up with legal compliance, such as state income taxes, reporting requirements, unemployment insurance, and more.

Federal and Illinois New Hire Forms W-4 – Employees Withholding Allowance – The W-4 ensures that the employee has the correct amount of Federal taxes withheld from their paycheck. IL-W-4 – Illinois Employee Withholding Allowance – The IL-W-4 is a specific withholding form for the state of Illinois.

The most common types of employment forms to complete are: W-4 form (or W-9 for contractors) I-9 Employment Eligibility Verification form. State Tax Withholding form.

New employees need to fill out a Form I-9 to verify employment eligibility as well as a W-4 for income tax. In states with an income tax, it's necessary to fill out a second W-4.

Other bills governing AI across a range of fields include: Assembly Bill 3030: Health Care Services: Artificial Intelligence Act. Assembly Bill 2602: Contracts against Public Policy: Personal or Professional Services: Digital Replica Act. Bill 896: Generative Artificial Intelligence Accountability Act.

AI can positively augment work by replacing and automating repetitive tasks or assisting with routine decisions, which may reduce the burden on workers and allow them to better perform other responsibilities.

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Pritzker signed into law HB3733, which amends the Illinois Human Rights Act (IHRA) to cover employer use of artificial intelligence (AI). Employers must provide notice to employees if AI is used in recruitment, hiring, promotion, or other employmentrelated decisions.On August 9, 2024, Illinois joined them when Governor JB Pritzker signed a new law into effect specifically addressing employer use of AI. Illinois HB 3773 requires employers to provide notice to applicants and employees that the employer is using AI for various employment decisions. , is among the first of its kind in the country. Notice: Employers must provide notice to an employee that the employer is using AI for the purposes described above. , is among the first of its kind in the country. Illinois employers must notify employees of the use of AI to make or aid in making employmentrelated decisions. More recently, Illinois passed a law in August 2024 impacting employer use of AI technology under HB 3773. Use artificial intelligence in recruitment, hiring, promotion and other employment decisions in a way that subjects employees to discrimination.

Labor Employment Law With Ai In Illinois

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