Hiring in Illinois: new-hire reporting with IDES

Illinois employers have two things to keep in mind when they hire: the new-hire report that goes to the Illinois Department of Employment Security (IDES), and, since 2026, a state rule about telling candidates when AI is used in hiring decisions.

The new-hire report

IDES asks employers to report new employees within 20 days of the employee's first day on the payroll, and its page says to report new hires including independent contractors.

IDES lists three ways to report: online (which needs an IDES username and password), by mail or fax with the IDES New Hire Form (Illinois New Hire Directory, 115 S. LaSalle St, Chicago, IL 60603-3820; fax 217-557-1947), or by electronic file for larger employers.

Federal law sets the outer limit: an employer must report each new hire to the state directory of new hires no later than 20 days after the hire, and employers that report electronically may instead send two transmissions a month, 12 to 16 days apart. The report carries the employee's name, address and Social Security number, the date they first worked for pay, and the employer's name, address and federal tax identification number (42 U.S.C. 653a).

Telling candidates about AI in hiring

Illinois Public Act 103-0804 took effect on January 1, 2026. It bars employers from using AI in a way that has the effect of discriminating, bars using ZIP codes as a proxy for protected classes, and requires notice when AI is used in recruitment, hiring and similar decisions. Rules on the format of that notice were proposed and then withdrawn in 2026, so ask counsel how to give it.

This is one reason MyHiringOptions builds stay on coordination. The workflows we build collect, acknowledge, schedule, remind and track status; they do not score, rank or reject candidates, and candidates are told when a message is automated. Your team reviews every candidate and makes every hiring decision.

Where the report slips, and how to keep it on track

Because the Illinois clock starts on the first payroll day, the person who knows that date is usually in the office, not the person who made the hire. Contractors, who may never touch payroll, are the easiest to miss.

The report itself is filed by whoever runs your payroll or onboarding. Where a hiring workflow helps is the hand-off: when your team marks a candidate as hired, the workflow can remind the person who files the report, with the hire date and the deadline, so the 20 days are not lost between the hiring manager and the office. Your team still decides who is hired and files the report.

Before you rely on this guide

This is a plain-English summary, not legal advice. Check the IDES new-hire reporting page for current filing details and Public Act 103-0804 for the AI rule, and ask counsel about notices.