Illinois proposes notification rules for use of AI in employment decisions: mandatory transparency

The Illinois government published a proposal for rules requiring employers to inform employees about the use of artificial intelligence (IA) in labor decisions. The measure, announced by the Department of Human Rights of the State, details how technology is employed, what data is analyzed and how workers can challenge automated results. The idea is to ensure that the AI does not reproduce discriminatory biases without the affected knowing.

New Illinois rules: what the law requires about AI in employment

The proposal determines that companies using AI tools to select candidates, evaluate performance or define promotions and layoffs should provide a clear warning to the worker. This warning needs to explain, in accessible language, what type of technology is being used, what characteristics or personal data are considered by the system — for example, professional history, test results or behavior patterns — and how the employee may request a human review of the decision.

In addition, the rules require the employer to disclose whether the AI has been trained with historical data that may contain racial, gender or age prejudices. If the tool is used to filter resumes even before the interview, notification should occur at the time of application. The proposal complements the Illinois Human Rights Act, which already prohibits discrimination at work, but did not specifically contemplate the use of algorithms.

AI transparency: why urgency in employment decisions

Studies show that AI systems can amplify inequalities if they are not supervised. In 2023, a U.S. government investigation revealed that automated recruitment software often penalized female candidates or black people by reproducing past hiring patterns. Illinois had pioneered in 2020 by prohibiting the use of facial recognition in video interviews without consent. Now, with the notification proposal, the state seeks to close legal loopholes that allow algorithms to make opaque decisions.

For the Brazilian labor market, Illinois movement serves as a warning. Companies that operate globally or develop HR tools with AI need to prepare for stricter standards of transparency. In Brazil, there is no specific regulation yet, but the General Data Protection Act (LGPD) already requires automated decisions to be explained. Initiatives such as ServiceNow expands autonomous workforce with specialized AI agents for IT, CRM and security show how AI is integrating into corporate daily life, making regulation even more necessary.

Employment AI: impacts for companies and workers

The Illinois proposal is in the process of public consultation, with deadline for comments until September 2025. If approved, the rules will apply to all employers with officials in the state — including multinationals and startups. Failure to comply can generate fines and lawsuits for discrimination. For workers, the main advantage is the right to understand how their opportunities are shaped by machines.

The measure also encourages companies to review their AI models to ensure that they are auditable and fair. Experts point out that mandatory notification can generate an initial cost of adaptation, but reduces legal risks and improves employee confidence. Bloomberg Law, the original source of the news, details that the Illinois Human Rights Department is especially attentive to AI tools that evaluate large volumes of candidates.

Frequently Asked Questions about AI in employment and notification

Which workers will be notified?

All employees and candidates for vacancies in Illinois who are subject to AI-based decisions, such as hiring, promotion, performance evaluation and dismissal.

What exactly do companies need to disclose?

They shall inform the type of AI used, the personal and professional data analyzed, and how the worker may request a human review. It is also necessary to state whether the model has been trained with historical data that may contain biases.

When do the rules come into effect?

There's no date yet. The proposal is in public consultation until September 2025. After reviewing the comments, the Illinois Human Rights Department will publish the final version, which will be valid in up to 90 days.