Illinois AI Hiring Law: What Employers Need to Know About AIVIA Compliance in 2026

The Illinois Artificial Intelligence Video Interview Act (AIVIA) and the recent amendments under HB 3773 create specific obligations that many employers are still getting wrong. This guide breaks down exactly what's required, what the penalties look like, and how to stay compliant without grinding your hiring process to a halt.

What Is Illinois AIVIA?

The Artificial Intelligence Video Interview Act (820 ILCS 42) was originally passed in 2020, making Illinois the first state to regulate AI in hiring. The law has since been expanded through HB 3773 to cover a broader range of AI-powered hiring tools—not just video interviews.

The law applies to you if:

• You have employees in Illinois
• You use AI or automated decision-making tools in any part of your hiring process
• This includes resume screening, chatbots, skills assessments, video interviews, and candidate ranking systems

The Three Core Requirements

1. Disclosure Before Use

Before a candidate interacts with any AI hiring tool, you must provide written notice that explains:

• That AI will be used to evaluate their candidacy
• What the AI is evaluating (skills, personality traits, qualifications, etc.)
• How the AI analysis will factor into the hiring decision

"The disclosure piece is where most companies fail their first audit. They'll have something in their ATS terms, but candidates never actually see it. That's not compliant."

2. Consent Requirements

After providing disclosure, you must obtain the candidate's consent before using the AI tool. This consent must be:

• Affirmative (opt-in, not opt-out)
• Specific to the AI evaluation
• Documented and retained

The tricky part: If a candidate declines AI evaluation, you need an alternative process. You can't simply reject them for refusing. This is where many employers' workflows break down—they haven't built the non-AI path.

3. Data Retention and Destruction

AIVIA includes specific requirements for how long you keep AI evaluation data and when you must destroy it:

• Video recordings must be destroyed within 30 days of a candidate's request
• You must have a documented data retention policy
• Candidates have the right to request their data be deleted

What Counts as "AI" Under the Law?

This is where it gets nuanced. The law covers:

Clearly covered:

• AI-powered video interview analysis (HireVue-style)
• Resume parsing and screening tools
• Chatbot-based candidate assessments
• Predictive analytics that rank candidates
• Skills or personality assessments using ML models

Gray areas:

• Keyword matching in ATS systems (depends on sophistication)
• Calendar scheduling bots (probably not covered)
• Simple automated email sequences (not covered)

The test: If the tool is making evaluative judgments about candidates—scoring, ranking, filtering, or recommending—it's likely covered. If it's purely administrative, it's likely not.

Penalties for Non-Compliance

Illinois enforces AIVIA through the Illinois Department of Labor. Penalties include:

• First violation: Up to $500 per affected candidate
• Subsequent violations: Up to $1,000 per affected candidate
• Pattern of violations: Additional penalties and potential injunctive relief

Beyond direct penalties, non-compliance creates:

• Private right of action exposure
• Reputational damage in competitive hiring markets
• Complications in M&A due diligence (acquirers are checking this now)

How to Become Compliant: A Practical Checklist

Step 1: Audit Your Current Tools

Map every tool in your hiring workflow and flag anything that:

• ☐ Scores or ranks candidates
• ☐ Filters applications automatically
• ☐ Analyzes video, audio, or text from candidates
• ☐ Uses machine learning or AI in any evaluation

Step 2: Update Your Disclosure Language

For each AI tool, create clear disclosure language that covers:

• ☐ What the tool is
• ☐ What it evaluates
• ☐ How it impacts hiring decisions
• ☐ How candidates can opt out

Step 3: Implement Consent Capture

Build consent capture into your workflow:

• ☐ Consent appears before AI evaluation
• ☐ Consent is affirmative (checkbox, signature, or equivalent)
• ☐ Consent is logged with timestamp
• ☐ Alternative path exists for candidates who decline

Step 4: Create Your Alternative Process

Design a non-AI evaluation path for candidates who opt out:

• ☐ Define what "alternative review" looks like
• ☐ Train recruiters on the alternative process
• ☐ Ensure opt-out candidates aren't disadvantaged

Step 5: Document Everything

Build your compliance documentation:

• ☐ Written policy on AI use in hiring
• ☐ Data retention and destruction procedures
• ☐ Consent records retention (keep for at least 3 years)
• ☐ Regular audit schedule

How EmployArmor Helps

We built EmployArmor specifically for this problem. Our platform:

• Scans your job postings for AI tool usage and flags compliance gaps
• Generates disclosure language tailored to your specific tools
• Manages consent capture with audit-ready documentation
• Provides the alternative pathway workflow out of the box
• Monitors regulatory changes so you don't have to

Frequently Asked Questions

Does AIVIA apply to remote workers?

Yes. If the employee will be working in Illinois—even remotely—the law applies. The location of your headquarters doesn't matter.

What if we use a third-party ATS with built-in AI?

You're still responsible for compliance. Your vendor may provide tools to help, but the legal obligation sits with you as the employer. Ask your ATS vendor for their AIVIA compliance documentation.

Do we need to disclose AI use for internal transfers or promotions?

The law specifically covers "applicants for employment." Internal moves are a gray area, but if you're using AI to evaluate internal candidates for new roles, the safer approach is to disclose.

What about AI tools we're just testing?

If candidates are being evaluated by the AI—even in a pilot—you need to comply. "Testing" isn't an exemption.

How does Illinois compare to other state AI laws?

Illinois was first, but Colorado, New York City, and other jurisdictions have followed. The requirements vary:

Illinois is consent-heavy but doesn't require bias audits. NYC requires audits but not consent. If you operate in multiple jurisdictions, you need to comply with all applicable laws.

Frequently Asked Questions

Does AIVIA apply if the candidate lives in Illinois but the job is remote in another state?

Yes. AIVIA applies to "applicants for employment" in Illinois, which includes Illinois residents regardless of where the job is located. If an Illinois resident applies for your fully remote position based in California, AIVIA applies to that hire. Your compliance trigger is candidate location, not job location. For remote roles open to multiple states, you must comply with each applicable state's laws based on where candidates are located.

What if a candidate refuses consent? Can we reject their application?

No. AIVIA requires that you provide an "alternative manner" for candidates who don't consent to AI evaluation. You cannot penalize or automatically reject candidates who opt out—this would defeat the law's purpose. The alternative process must be "equivalent" in terms of opportunity. For example, if your standard process is AI resume screening followed by phone interview, opt-out candidates might receive direct human resume review followed by the same phone interview. Document that opt-out candidates are not disadvantaged in outcomes (track hire rates for opt-outs vs. AI-evaluated candidates to prove equivalence).

How specific does our AI disclosure need to be?

Very specific. Generic language like "we may use technology in hiring" doesn't meet AIVIA requirements. Your disclosure must explain: (1) that artificial intelligence will be used, (2) what characteristics or traits the AI evaluates (e.g., "communication skills, problem-solving ability, and cultural fit based on video interview responses"), and (3) how the AI output factors into hiring decisions (e.g., "candidates scoring below 70% are not advanced to phone screen stage"). See our disclosure templates for compliant examples. When in doubt, err on the side of more detail.

Does the 30-day deletion requirement apply to all candidate data or just video recordings?

AIVIA specifically mentions video recordings in the deletion provision (Section 10), requiring destruction within 30 days of a candidate's request. However, the broader principle of candidate data rights suggests best practice is to extend deletion rights to all AI-generated evaluations, scores, and analyses. If a candidate requests deletion of their AI assessment data, refusing on the grounds that "it's not technically a video recording" is legally risky. The Illinois Attorney General's guidance leans toward expansive interpretation of candidate data rights. Our recommendation: honor all deletion requests for AI-related candidate data within 30 days.

Do we need separate consent for each AI tool, or can one general consent cover all AI use?

One comprehensive consent can cover multiple AI tools if it's sufficiently detailed. However, the consent must inform candidates about all AI tools they'll encounter. Example of acceptable combined consent: "I consent to the use of artificial intelligence in evaluating my candidacy, including: (1) Greenhouse ATS resume screening which analyzes my qualifications against job requirements, (2) HireVue video interview analysis which evaluates communication and problem-solving skills, and (3) Codility technical assessment which scores my coding ability." Don't use overly broad consent like "I consent to any AI tools the company may use"—this lacks the specificity AIVIA requires. When in doubt, provide tool-specific disclosures and consents at each stage where AI is introduced.

Are personality tests and skills assessments considered "AI" under AIVIA?

If they use machine learning, algorithmic scoring, or automated decision-making, yes. Traditional personality tests (paper-based, static scoring rubrics) are generally not covered. However, modern assessment platforms like Pymetrics, Criteria Corp, HackerRank, and Codility use ML algorithms to score responses, compare candidates to benchmarks, or adapt questions based on performance—all of which constitute AI under AIVIA. The key question: Is the evaluation automated and algorithmic? If yes, it's covered. Check with your assessment vendor about whether their platform uses AI/ML. If they can't give you a clear answer, treat it as AI-powered to be safe. See our guide on what counts as AI in hiring.

What happens if we discover we've been non-compliant for months or years?

First, stop the non-compliant practice immediately. Second, conduct internal review to understand the scope: how many candidates were affected, what violations occurred, and when they started. Third, implement compliant processes going forward. Fourth, consult legal counsel about whether voluntary disclosure to the Illinois Department of Labor is advisable—proactive disclosure sometimes reduces penalties. Fifth, document all corrective actions taken. Penalties are calculated per violation (per candidate), but the Department of Labor has discretion in enforcement. Demonstrating good faith (you discovered the issue through internal audit, fixed it promptly, took steps to prevent recurrence) may reduce penalties. Don't ignore historical non-compliance and hope no one notices—candidates can file complaints, triggering investigations into your past practices.

2026 Enforcement Landscape in Illinois

Recent IDOL Enforcement Actions

The Illinois Department of Labor (IDOL) has become more active in AIVIA enforcement:

• Large staffing firm (Nov 2025): $340,000 penalty for failure to obtain consent from 680 candidates. IDOL emphasized that high-volume hiring does not excuse compliance shortcuts.
• E-commerce company (Jan 2026): $150,000 penalty for inadequate disclosure language. Company's notice said "we use technology" without mentioning AI or explaining what it evaluated.
• Healthcare system (Dec 2025): Under investigation for refusing to honor deletion requests from candidates. Investigation ongoing but signals IDOL focus on candidate data rights.

Coordination with Other Agencies

IDOL is coordinating with the Illinois Attorney General and EEOC on AI hiring enforcement. In two recent cases, AIVIA violations uncovered during IDOL investigations led to EEOC charges for underlying discrimination. Non-compliance with AIVIA often indicates broader employment law problems.

Private Litigation Trends

AIVIA includes an implied private right of action, and plaintiffs' attorneys are increasingly bringing class actions. Typical claims: failure to disclose AI use, failure to obtain consent, and failure to provide alternative processes. Settlement values for AIVIA class actions have ranged from $50,000 (small class, quick settlement) to $3.2 million (large class, protracted litigation). Most settle in the $200,000-800,000 range.

Bottom Line

Illinois AIVIA compliance isn't optional, and enforcement is increasing. The good news: the requirements are straightforward once you understand them. Disclose, get consent, document everything, and provide an alternative for candidates who opt out.

The companies getting ahead aren't waiting for an audit—they're building compliance into their hiring process now.

Related Resources

• Illinois Compliance Dashboard
• What Counts as AI in Hiring?
• AI Disclosure Notice Template
• Do I Need to Disclose? Decision Tree