SB 968 · Illinois · introduced Jan 24, 2025In Committee

SB 968

EMPLOYMENT-TECH

High RiskCreates new compliance requirements or restricts common AI uses. Action needed.

TL;DR

Illinois SB 968 (EMPLOYMENT-TECH) targets employers using AI and automated decision tools in hiring, promotion, and firing decisions. The bill would require bias audits, candidate notifications, and disclosure when AI plays a role in employment decisions. It builds on Illinois's existing AI Video Interview Act and expands worker protections around algorithmic management.

How This Might Impact Your Business

Employers using AI in hiring, promotion, discipline, or termination decisions in Illinois would face new disclosure and audit obligations.

HR tech vendors selling resume screeners, video interview analyzers, and predictive hiring tools to Illinois employers would need to support customer compliance with bias audit requirements.

Candidates and employees would gain the right to know when AI is used to evaluate them, similar to NYC Local Law 144.

Annual or periodic bias audits would likely become mandatory for automated employment decision tools, creating recurring compliance costs.

Penalties for non-compliance would likely mirror Illinois Human Rights Act enforcement, exposing employers to civil claims and state agency actions.

Gig economy platforms and staffing agencies operating in Illinois would face scrutiny over algorithmic worker management practices.

Currently stalled in Senate Assignments after a floor amendment, meaning specific thresholds and effective dates are still in flux.

What Should You Do

1

Inventory every AI or automated tool your HR team uses, including resume screeners, chatbots, video interview platforms, and performance scoring systems.

2

Ask your HR tech vendors whether they provide bias audit reports and candidate disclosure templates that would satisfy Illinois requirements.

3

Have legal review your current candidate-facing notices and consent flows for Illinois applicants to identify disclosure gaps.

4

Assign someone to track SB 968 movement out of Senate Assignments and flag any amended text that defines covered employers or audit frequency.

5

Budget for annual third-party bias audits if you employ more than a handful of Illinois workers and rely on automated screening.

Who It Affects

HR TechStaffing and RecruitingGig Economy PlatformsEnterprise Employers (multi-state)Workforce AnalyticsLegal and Compliance Services

Status Timeline

  1. committee

    Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments

    July 2, 2025

AI-generated analysis for informational purposes only. Not legal advice. Always consult a qualified attorney for legal guidance.Last action Jul 2, 2025

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