USA – ILLINOIS Trends and Developments Contributed by: Paul Yovanic, Jason Priebe, Ada Dolph and Michael Jacobsen, Seyfarth Shaw LLP
• information regarding the right to request rea - sonable accommodation (effectively an opt-out mechanism). According to the draft regulations, AI notices to per - sonnel must be posted in multiple locations, including: • the employee handbook; • a conspicuous physical location where workplace notices are displayed; • the employer’s internal and external websites; and • text of all job postings. Employers must also update these disclosures within 30 days of adopting any new AI technology. As AI technology develops and evolves, it is easy to imag - ine significant hours being spent updating the Illinois disclosures in order to confirm that each publication version is current, and that the technology use and descriptions are correct – not to mention the creation and management of the alternative opt-out process. The statute’s explicit ban on using zip codes as prox - ies for protected characteristics reflects concerns about geographic segregation in Illinois. However, the law does not prohibit reliance on other location- based data, such as city or county identifiers, creat - ing potential ambiguity. That said, employers would be well advised to avoid incorporating any identifier or variable into AI-driven decision-making intended for use as a proxy aligned with a protected class or identifying characteristic.
While the state’s attempt at an omnibus privacy law to regulate all categories of “personal information” has essentially stalled, the recent regulations concerning the collection and processing of discrete categories of sensitive personal information and the use of AI in employment are worthy of close attention. The frame - work for the regulation of AI for employment and hir - ing emphasises transparency and anti-discrimination. However, the expansive interpretation proposed by the IDHR introduces operational complexity (and potentially a practical impossibility) for employers. Organisations should monitor rule-making develop - ments closely and consider steering clear of the state for AI personnel technology deployment until specific requirements are sorted out.
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