AI Hiring Rules Every Staffing Agency Should Know in 2026

If you use AI anywhere in screening, there are now rules about how. This is a plain-language overview of three that come up most often, not legal advice. Talk to an employment lawyer about your own situation.

Illinois: the Human Rights Act change (in effect since January 1, 2026)

Illinois amended its Human Rights Act (HB 3773) to cover AI in employment decisions, including recruitment and hiring. Employers must notify people when AI is used for those decisions, and may not use AI in a way that has a discriminatory effect on protected classes. It also bars using zip codes as a stand-in for protected classes.

Illinois: the AI Video Interview Act

When AI analyzes a recorded video interview, employers must tell the applicant beforehand, explain how the AI works and what it evaluates, get their consent, limit who sees the video, and delete it within 30 days if the applicant asks.

New York City: Local Law 144

NYC's law applies to employers and employment agencies using automated employment decision tools. The tool must have had an independent bias audit within the past year, a summary of that audit must be public, and candidates must get notice 10 business days before the tool is used. Enforcement began in July 2023.

Questions to ask any AI screening vendor

• What are candidates told before the AI assessment, and is their agreement recorded?
• What exactly is scored, and can I see the evidence behind each score?
• Does the tool ever reject or rank candidates out on its own?
• Has it had an independent bias audit?
• How do candidates get their data deleted?

Our own answers

• Candidates see a notice before the interview explaining that AI scores their answers, what employers see, and that pasted text and timing are recorded. They tick a box to agree, and we record when and which version of the notice they saw.
• The interview is typed, not video, and questions are about work only.
• Every score comes with the full transcript, and TrueScreenHR never rejects or auto-advances anyone. People make the decisions.
• Candidates can ask us to delete their interview and profile at any time.
• We have not had an independent bias audit yet. If you place candidates in New York City roles, talk to us first.

A clear compliance story is becoming part of what clients expect from their agencies.