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Illinois · Law

Illinois HB 3773 on AI in employment

In forceIllinois HB 3773

Summary

Since January 1, 2026, it is unlawful discrimination in Illinois to use AI that has a discriminatory effect in employment decisions, or to use ZIP codes as a proxy for a protected characteristic. Employers must give notice when they use AI in those decisions. The IDHR proposed notice rules in May 2026 and withdrew them in June; the statutory duty remains in force.

Who it applies to

Employers with one or more employees in Illinois that use AI to hire, promote, train, discipline, discharge or set terms of employment.

Penalties

Illinois Human Rights Act remedies: back pay, damages, fees and civil penalties.

Official name
Public Act 103-0804 (HB 3773), amending the Illinois Human Rights Act (775 ILCS 5/2-102(L))
Official reference
Public Act 103-0804, firmada el 9 de agosto de 2024; vigente el 1 de enero de 2026
Regulator
Illinois Department of Human Rights (IDHR) and Human Rights Commission
Official source
Check the sourceHow we verify sources

Key dates

Obligations and dates

Obligations table
ObligationArticle or citationStatusDateWho it applies toVerification
Do not use AI with discriminatory effect or ZIP codes as a proxy775 ILCS 5/2-102(L)(1)In forceJanuary 1, 2026Applies to employers with workers or candidates in Illinois that use AI in employment decisions.Pending confirmation in the official source (last checked: November 4, 2026)
Give notice of AI use in employment decisions775 ILCS 5/2-102(L)(2)In forceJanuary 1, 2026Applies to employers with workers or candidates in Illinois that use AI in employment decisions.Pending confirmation in the official source (last checked: November 4, 2026)

Do not use AI with discriminatory effect or ZIP codes as a proxy

775 ILCS 5/2-102(L)(1)In force

Applies from January 1, 2026

When it relates
Applies to employers with workers or candidates in Illinois that use AI in employment decisions.
What the rule provides
  • Prohibit in internal policy the use of ZIP codes as a proxy for protected characteristics.
  • Check whether the tool produces unequal outcomes by group; the law does not require an audit, but it is the best defense.
Typical evidence
  • AI-in-employment policy
  • Bias review report (voluntary)
Related base documents
Verification
Pending confirmation in the official source (last checked: November 4, 2026)ilga.gov refused the connection on Nov 4, 2026, so the official text is still unchecked. The wording of the duty in 775 ILCS 5/2-102(L) still has to be confirmed. The effective date (Jan 1, 2026) and the withdrawal of the IDHR proposed rules (Jun 2, 2026) come from consistent secondary sources (Seyfarth, Burke, National Law Review).

Give notice of AI use in employment decisions

775 ILCS 5/2-102(L)(2)In force

Applies from January 1, 2026

When it relates
Applies to employers with workers or candidates in Illinois that use AI in employment decisions.
What the rule provides
  • Tell employees (and, as good practice, candidates) that AI is used and for which decisions.
  • As good practice, include the tool and vendor name, as the withdrawn IDHR draft required.
Typical evidence
  • Dated notice, delivered or posted
Supporting documents
Verification
Pending confirmation in the official source (last checked: November 4, 2026)ilga.gov refused the connection on Nov 4, 2026, so the official text is still unchecked. The wording of the duty in 775 ILCS 5/2-102(L) still has to be confirmed. The effective date (Jan 1, 2026) and the withdrawal of the IDHR proposed rules (Jun 2, 2026) come from consistent secondary sources (Seyfarth, Burke, National Law Review).

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