Illinois amends Human Rights Act to regulate AI in employment decisions (HB 3773)

Illinois House Bill 3773 further amends the Employment Article of the Illinois Human Rights Act to address employers' use of artificial intelligence in workplace decisions.

Illinois House Bill 3773, signed by Governor JB Pritzker on August 9, 2024, amends the Illinois Human Rights Act to address the use of artificial intelligence in employment decisions.

What it is

The bill began as a measure to limit employer use of predictive data analytics, providing that an employer using such analytics could not consider an applicant's race or zip code used as a proxy for race.

Senate Floor Amendment No. 3 replaced that earlier text, refocusing the bill on artificial intelligence within the Employment Article of the Human Rights Act.

That final version adds statutory definitions for artificial intelligence and for generative artificial intelligence.

What it requires

Under the amendment, it is a civil rights violation for an employer to use artificial intelligence that has the effect of subjecting employees to discrimination on the basis of protected classes identified under the Article, or to use zip codes as a proxy for protected classes identified under the Article.

The prohibition covers recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure and other terms and conditions of employment.

It is also a civil rights violation for an employer to fail to provide notice to an employee that the employer is using artificial intelligence.

These obligations take effect January 1, 2026, under the amendment adopted in the final version of the bill.

A compliance tracker reports that the act mandates notice to workers when AI is used and requires impact assessments, with enforcement running through the Illinois Department of Human Rights and civil penalties up to $5,000 per violation for willful or repeat offenses.

What security leaders should do

Security and compliance leaders overseeing employment-related AI tools should inventory every system used in recruitment, screening, promotion, discipline or discharge decisions before the January 1, 2026 effective date so each tool can be mapped against the statute's definitions.

Work with legal and HR to confirm which vendor tools meet the definitions of artificial intelligence or generative artificial intelligence, since both terms carry obligations under the amended Human Rights Act.

Build a notice process so applicants and employees are told when an AI system is used in an employment decision, and keep records showing that zip code or similar proxy variables are not driving outcomes tied to protected classes.

Coordinate with vendors supplying hiring or workforce AI tools to obtain documentation supporting non-discriminatory design, since enforcement in Illinois runs through the existing Human Rights Act complaint process at the Illinois Department of Human Rights.