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AI in the Workplace: Illinois Sets New Rules for 2026

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Hey there, HR Family!

Get ready for a game-changer in the world of artificial intelligence (AI) and employment. Illinois is taking the lead with new regulations that will impact how we use AI in our workplaces. Let’s dive into what this means for you and your company.

The Big Picture

Starting January 1, 2026, Illinois is rolling out new rules for using AI in employment. Whether you’re a small startup or a large corporation, these changes will affect you. So, what’s the scoop?

Transparency is Key

First things first: notice. If you’re using AI for any employment purposes – think recruiting, discipline, or selecting employees for training – you’ll need to let your employees know. No more behind-the-scenes AI decisions without your team being in the loop!

Fair Play in AI

Here’s where it gets really interesting. The new law prohibits using AI in ways that discriminate against employees based on protected classes. That means your AI tools need to be as unbiased as possible.

But wait, there’s more! The law also considers using ZIP codes as a proxy for protected classes to be discriminatory. This is a big deal, folks. It means we need to be extra careful about how geographic data is used in our AI systems.

What We Don’t Know Yet

The Illinois Department of Human Rights will be providing more detailed rules on these requirements. We’re eagerly awaiting this guidance to better understand how to implement these changes effectively.

What This Means for HR

  1. Audit Your AI: Start reviewing any AI tools you’re using in your HR processes. Are they transparent? Could they potentially discriminate?
  2. Plan for Notifications: Begin thinking about how you’ll notify employees about AI use. Will it be in your employee handbook? A separate communication?
  3. Train Your Team: Make sure your HR team understands these new regulations and their implications.
  4. Stay Tuned: Keep an eye out for those upcoming detailed rules from the Illinois Department of Human Rights.
  5. Think Beyond Illinois: While this law is specific to Illinois, it could be a trendsetter. Consider implementing these practices across your organization if you operate in multiple states.

Remember, this law was signed by the governor on August 9, 2024, but it doesn’t take effect until January 1, 2026. That gives us some time to prepare, but it’s never too early to start planning!

This new law in Illinois is a clear signal that the use of AI in employment is under scrutiny across the nation. As HR professionals, it’s our job to ensure that our use of technology is fair, transparent, and compliant with all regulations.

By staying ahead of these changes, we can harness the power of AI while maintaining trust and fairness in our workplaces.

 

Be Audit-Secure!

 

Lisa Smith, SPHR, SCP

 

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