On August 9, 2024, Illinois Governor J.B. Pritzker signed HB 3773 into law, amending the Illinois Human Rights Act (IHRA) to regulate the use of artificial intelligence (AI), including generative AI, in employment decisions by employers with operations in Illinois. Following Colorado, which passed a similar bill in May 2024, Illinois is the second state to enact regulations expressly addressing potential algorithmic discrimination.
The bill, which goes into effect January 1, 2026, prohibits employers' use of AI in decisions related to recruitment, hiring, renewal of employment, promotion, training, discharge, discipline, tenure, or the "terms, privileges, or conditions of employment" where the AI has a discriminatory effect based on the basis of protected classes under the IHRA or uses zip codes as a proxy for a protected class under the Act. 775 ILCS 5/2-101(L)(1). Employers are also required to provide notice to employees and applicants when using AI in making employment decisions, though specifics as to the particular circumstances under which notice is required, as well as the timing and means of notice to employees, will be established by the Illinois Department of Human Rights in forthcoming guidance. The Department will have the authority to issue other rules as to the implementation and enforcement as well.
This article is presented for informational purposes only and is not intended to constitute legal advice.