Policy
What Your AI Notice Must Say, and When Each Jurisdiction Wants It
An employer using AI in a hiring decision owes candidates notice before the tool runs, and in one state consent as well. New York City wants written notice at least ten business days before an automated employment decision tool touches a candidate, naming the qualifications it assesses. Illinois has required notice since January 1, 2026, with the wording still delegated to rules, and has required consent before AI analyses a recorded video interview since 2020. California requires no notice and four years of records instead.
The takeAn unfinished rulemaking is not a grace period. The Illinois act set its own effective date in its final section, and no agency calendar moves that. The realistic exposure was never the fine anyway. It is standing in front of a regulator, or a candidate's lawyer, with no document showing what the person was told and when, at a point where producing one would have cost a paragraph. A notice drafted now and edited later by the final rule is worth more than a perfect one drafted late.
Where Olive fits
Open a role and see what the work shows
Under the automated-decision rules, a number standing in for a person explains nothing. Olive produces no composite and no automated decision at all: a person writes each of the six findings, every finding carries the timestamped excerpt it rests on, and a released report exports with its rubric, scorer and bank versions attached.
Rank your shortlistWhat does New York City require, and how far ahead?
Ten business days, in writing, before the tool runs on that candidate. Local Law 144, in force since January 1, 2023 and enforced since July 5, 2023, bars an employer from using an automated employment decision tool on a candidate in the city unless a bias audit was completed within the prior year, a summary of the results is posted publicly, and the candidate received notice at least ten business days ahead 1. Business days, not calendar days.
The notice itself has required contents. It has to say that an automated tool will be used, name the job qualifications and characteristics the tool assesses, and include instructions for requesting an alternative selection process or a reasonable accommodation, where one is available; the rules state expressly that nothing requires an employer to provide an alternative selection process 6. A standing notice on the careers page satisfies the rule, and it starts the clock for everyone who reads it.
Two limits bound the duty. It attaches only where the tool substantially assists or replaces discretionary decision-making, and an employer that concludes its tool merely informs a human reviewer takes itself out of scope without asking anyone 1. And enforcement has been thin: a New York State Comptroller audit of the first two years found DCWP had received two complaints in the whole period, with nine of the auditors' twelve test calls to 311 never reaching the agency at all 4.
Do not read too much into the thin enforcement. A broken complaint line says more about 311 than about employers, and it is a poor reason to skip a duty that costs a page of text. It does mean the pressure to comply is more likely to arrive through a discrimination claim than through a city inspector.
Why is Illinois the widest trigger and the thinnest instruction?
Because the statute defines artificial intelligence broadly and then says almost nothing about the notice. Since January 1, 2026 the Illinois Human Rights Act has made it a civil rights violation to use AI that has the effect of discriminating in recruitment, hiring, promotion or discharge, to use zip codes as a proxy for a protected class, or to fail to notify an employee that AI is being used for those purposes 2.
The definition is the part that sweeps. Artificial intelligence there means a machine-based system that infers from its input how to generate outputs such as predictions, content, recommendations or decisions that can influence physical or virtual environments, and it expressly includes generative AI 2. That reaches a sourcing tool, a resume ranker, a scheduling assistant that decides who gets a slot, and a manager comparing candidates in a chat window. If you are trying to work out whether your existing stack is inside it, start with whether your ATS counts as AI at all.
The notice instruction never arrives. The same subsection directs the Department of Human Rights to adopt rules covering the circumstances and conditions that require notice, the time period for providing it, and the means 2. Until those rules exist, the act itself fixes neither the timing nor the contents. The prohibition and the effective date are in the statute regardless.
Illinois already has one AI notice duty that fixes both. The Artificial Intelligence Video Interview Act has required an employer using AI to analyse a recorded video interview for an Illinois position to notify the applicant beforehand, explain how the AI works and what general types of characteristics it evaluates, and obtain the applicant's consent, since 2020 5. It bars evaluating an applicant who has not consented, and on request the video has to be deleted within 30 days. It reaches that one technology and nothing else, so it says nothing about a resume screener or a take-home.
One drafting detail belongs with counsel. The 2026 act's notice clause runs to an employee, and Article 2 of the Act defines an employee as a person performing services for remuneration, an apprentice, or an applicant for an apprenticeship 2. An outside job applicant is not plainly inside that list, even though the discrimination clause above it plainly covers recruitment and hiring. Notify applicants anyway: the cost of the wider reading is a sentence and the cost of the narrower one is an argument.
What does California want instead of a notice?
Records. California's amended employment regulations brought automated-decision systems inside the discrimination rules on October 1, 2025, defining such a system as a computational process that makes or facilitates a decision about an employment benefit, and naming resume screening and the analysis of facial expression, word choice or voice in online interviews as examples 37. Nothing in them requires telling a candidate anything.
What they require instead is that you can reconstruct the decision later. The same amendments extended the employment-records retention period from two years to four and said expressly that automated-decision system data is included 3. They also made anti-bias testing legally relevant without mandating it: in a claim that such a system discriminated, evidence or the absence of evidence of testing is weighable, along with its quality, recency, scope, results, and what the employer did about the results 3. FEHA reaches employers with five or more employees.
That last clause has a sharp edge. An employer that tests, finds a disparity and does nothing has manufactured the exhibit against itself. Testing is still the right call, but budget for acting on what it says.
One more clause changes who is liable. An agent acting for an employer, including a vendor running the system, is itself an employer under the Act 3. Buying the tool does not move the duty to the seller. It adds a second defendant.
Write one notice to the widest trigger
One document, delivered before the tool runs, given to every candidate rather than only the ones in a covered state. Sorting candidates by jurisdiction at the moment of notice costs more than the notice does, and it breaks the first time someone relocates mid-process. Draft to the widest trigger and the strictest timing you are subject to, then let counsel narrow it.
Eight things belong in it, and all of them are things you already know:
- What the tool is, in the words a candidate would use, with the vendor's product name second.
- What stage it is used at, and what it does at that stage.
- What it assesses: the job qualifications and characteristics, stated concretely.
- What categories of candidate data it takes as input.
- Whether a human reviews the output before a decision, and at what point.
- A named contact, with a working address, for questions about the process.
- How to request an alternative selection process or a disability accommodation.
- When the notice was given, recorded per candidate.
Timing: ten business days before first use for anyone who might be a New York City candidate, which in a remote-hiring pipeline is most of them. Consent as well, if AI will analyse a recorded video interview for an Illinois position, captured as an affirmative yes before anyone evaluates it. Language: plain, and in the languages your applicant pool actually reads. Format: the same text in the posting, in the application flow, and in the file, so the version you produce later is the version they saw.
The notice is also the cheapest half of a harder problem. When someone is rejected and asks what happened, the notice covers what was used, and what it concluded is a separate conversation with its own duties. That one is worked through in what a rejected candidate is owed when AI screened them out, and the sign-off, ownership and review questions around all of it sit in what actually belongs in an AI hiring policy.
Last thing. If a manager has already been pasting resumes into a general chatbot on a live requisition, your notice is already late for that req. Say so internally before the notice goes out.
Common questions
Does the notice go to every candidate or only the ones in a covered state?
Legally, only the ones the statute reaches. Practically, everyone. Location is not fixed at application time in a remote pipeline, candidates move mid-process, and a recruiter deciding case by case is a source of inconsistency you will have to explain later. One notice given to everyone costs nothing extra and removes the judgment call from the moment where it is most likely to go wrong.
Do I have to name the vendor or model in the notice?
New York City does not require naming a vendor. It requires saying that an automated tool will be used and identifying the job qualifications and characteristics it assesses. Illinois has fixed nothing yet for the 2026 act: the notice's circumstances, timing and means are delegated to rules the Department of Human Rights has not adopted. Its Video Interview Act asks for an explanation of how the AI works rather than a vendor name. Name the tool in plain terms anyway: it is the detail a candidate can verify, and a notice a candidate cannot verify is weak evidence that notice was given.
What if a candidate asks for an alternative selection process?
Decide before the notice publishes, because the notice is what invites the request. New York City requires instructions for requesting a reasonable accommodation, and instructions for an alternative selection process only where one is available; the rules say expressly that nothing requires an employer to provide an alternative at all. Offering one is therefore a choice worth making deliberately. If the notice names an alternative, it has to exist: usually the same evaluation run by a person, on the same criteria, at the same stage.
Is the Illinois notice owed to job applicants or only to current employees?
That doubt is about the 2026 act only. Its notice clause runs to an employee, and Article 2 of the Illinois Human Rights Act defines an employee as someone performing services for remuneration, an apprentice, or an applicant for an apprenticeship. An outside job applicant is not plainly on that list, though the discrimination clause immediately above it covers recruitment and hiring without that limit. The older Video Interview Act has no such gap: it names the applicant directly. Ask counsel, and expect the answer to be that you notify applicants under both.
Does a bias audit satisfy the notice duty?
No. They are separate obligations under the same New York City law. The audit has to be completed within the prior year and its summary posted publicly; the notice has to reach the candidate ten business days before the tool is used. Posting the audit and skipping the notice fails the rule, and so does the reverse. Illinois requires no audit at all, which is why an audit-only compliance plan does not travel.
Do these duties apply to a tool that only ranks or sorts, without rejecting anyone?
Usually yes, and that is the assumption to plan on. The California definition covers a computational process that facilitates a decision, not just one that makes it. New York City's rule turns on whether the tool substantially assists discretionary decision-making, which a sort order often does. Illinois covers AI used for recruitment and hiring without distinguishing. A tool that changes who a human ever looks at has changed the decision.
References
- 1. Automated Employment Decision Tools: Frequently Asked Questions nyc.gov Supports the ten-business-day notice period, the bias-audit and posting duties, and the substantially-assists scope limit.
- 2. HB3773 Enrolled (Public Act 103-0804), amending the Illinois Human Rights Act ilga.gov Supports the January 1, 2026 effective date, the effects standard, the notice clause, the definition of artificial intelligence, the delegation of notice rules to the Department, and the Article 2 definition of employee.
- 3. Final Unmodified Text of Proposed Employment Regulations Regarding Automated-Decision Systems (Attachment B), 2 CCR sections 11008, 11008.1, 11009, 11013 calcivilrights.ca.gov Supports the October 1, 2025 effective date, the automated-decision-system definition and examples, the four-year records rule, the anti-bias testing evidence clause, and the vendor-as-employer clause.
- 4. Enforcement of Local Law 144 - Automated Employment Decision Tools, Report 2024-N-6 osc.ny.gov Supports the count of AEDT complaints DCWP received in the first two years and the failure rate of the 311 intake route.
- 5. Artificial Intelligence Video Interview Act, 820 ILCS 42 ilga.gov Supports the pre-interview notice, the explanation of how the AI works, the consent requirement and the bar on evaluating a non-consenting applicant, and the 30-day deletion duty.
- 6. Notice of Adoption of Final Rule: Use of Automated Employment Decisionmaking Tools (6 RCNY 5-300 et seq.) rules.cityofnewyork.us Supports the required notice contents under 6 RCNY 5-304(a): instructions for an alternative selection process or a reasonable accommodation where one is available, and the express statement that nothing requires an employer to provide an alternative selection process.
- 7. Rulemaking Actions - Civil Rights Council ✓ calcivilrights.ca.gov The Council's own record of the automated-decision-system employment regulations: approved by OAL and filed with the Secretary of State, effective October 1, 2025.
7 sources, numbered by first appearance. How Olive sources claims
General guidance, not legal advice. Hiring rules differ by state and country and change often; check anything here against your own counsel before you act on it.
Olive assesses how a person works with AI. It does not detect AI-written documents, and it never produces a score, a ranking, or a match percentage for a person. Candidates read the same report the employer reads.