The U.S. Equal Employment Opportunity Commission has proposed ending the annual federal EEO-1 reports on race, sex, and national origin data from private employers with 100 or more employees and certain federal contractors. The proposal, which is under White House review, is part of the administration’s effort to refocus antidiscrimination initiatives.

As of Jan. 1 of this year, employers operating in Illinois are prohibited from using AI in any covered employment decision unless they first provide notice to employees and job applicants. This applies regardless of whether the use of AI in the employment process is considered discriminatory or not. Examples include résumé screening, algorithmic assessments, targeted job advertising, video interview analysis, productivity monitoring, and AI-driven task assignment. The rule specifies when and how notice must be delivered. For current employees, notice must be provided annually and within 30 days of adopting or materially modifying AI systems. For job applicants, notice must be included in job postings. Employers must disseminate notices through multiple channels, including employee handbooks, workplace postings, and online platforms.

Staffing firms operating in Illinois should

• Inventory AI tools used across recruiting, screening, and assignment processes.
• Map AI use to specific employment decisions.
• Review vendor agreements to ensure access to required disclosures.
• Develop AI disclosure templates for job postings and candidate communications.
• Update employee handbooks and onboarding material.
• Establish record retention protocols aligned with the three-year requirement.

The law went into effect on Jan. 1, 2026. The Illinois Department of Human Rights will accept comments on the proposed regulations through June 29, 2026. A hearing takes place on June 10. Interested persons may participate in person or virtually or issue comments by emailing DHR.AI2026.Rules-PublicComment@illinois.gov.