Illinois Postpones AI-in-Employment Rulemaking — But the Underlying Law Still Applies
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The News
The Illinois Department of Human Rights (IDHR) has withdrawn and postponed its proposed rules implementing the state's AI-in-employment law, just weeks after publishing them for public comment on May 15. A public hearing scheduled for June 10 has been 'temporarily postponed' while the IDHR said it is 'reviewing matters related to the proposed rulemaking' and allowing for 'continued collaboration with other state agencies.'
The underlying law — Illinois HB 3773 (Public Act 103-0804) — took effect January 1, 2026, and prohibits AI that discriminates based on protected characteristics, even if the discrimination is unintended. It requires employers to provide notice when AI is used for recruitment, hiring, promotion, selection for training, discharge, discipline, or other employment decisions. The now-postponed proposed rules aimed to clarify the notice and recordkeeping obligations, specifying that employers must notify employees and applicants when AI is used 'to influence or facilitate a covered employment decision.'
The postponement creates regulatory uncertainty. The Ogletree Deakins law firm advises that employers using AI in Illinois 'should remain compliant' with the underlying law, which remains in effect regardless of whether clarifying rules have been finalized.
Why It Matters
Illinois is not an outlier here. Nineteen of the most populous US states have enacted employment-related AI laws or regulations, according to SHRM's 2026 research. New York City's Local Law 144 has been on the books since 2023. Colorado's AI law is coming. The EU AI Act enforces on August 2, classifying recruitment technology as high-risk. If your organization operates in multiple states — let alone internationally — you are already dealing with a patchwork of requirements.
The Illinois postponement is noteworthy not because the rules are paused but because it highlights how fast the regulatory landscape is shifting. The proposed rules were published on May 15 and withdrawn on June 2 — a 17-day window. If you blinked, you missed it. For TA leaders, the practical question isn't 'What does Illinois require?' but 'Do we have a process for tracking this across all the jurisdictions where we hire?'