Illinois Enacts Law Regulating Employers' Use of Artificial Intelligence
On August 9, 2024, Gov. J.B. Pritzker signed HB3773 into law, amending the Illinois Human Rights Act (IHRA) to address the growing use of artificial intelligence in the workplace. The bill, set to take effect in January 2026, seeks to clarify and extend the legal protections afforded to employees and job applicants evaluated by artificial intelligence and to implement safeguards against potential discrimination caused by the use of AI tools in the workplace.
HB3773 amends the IHRA to make clear that the statute is triggered when discrimination emanates from an employment decision involving the use of artificial intelligence. Under the new law, employers are required to notify employees and job candidates when artificial intelligence is used in employment decisions, including hiring, firing, promotion and discipline. The legislation also prohibits employers from using zip codes in AI algorithms as a proxy for protected classes. The timing and means of providing notice under the amended statute will be established in forthcoming guidance from the Illinois Department of Human Rights which, under the legislation, is authorized to adopt any rules necessary to implement and enforce the new law.
As the amendment is part of the IHRA, it applies to any employer with one or more employees during 20 or more calendar weeks within the year of the violation. Employers will be subject to liability if the use of AI in the above practices results in discrimination against an individual in a protected class. Illinois companies using AI as part of their employment practices should therefore be aware of this new law and take steps to ensure compliance with all requirements.
HB3773 amends the IHRA to make clear that the statute is triggered when discrimination emanates from an employment decision involving the use of artificial intelligence. Under the new law, employers are required to notify employees and job candidates when artificial intelligence is used in employment decisions, including hiring, firing, promotion and discipline. The legislation also prohibits employers from using zip codes in AI algorithms as a proxy for protected classes. The timing and means of providing notice under the amended statute will be established in forthcoming guidance from the Illinois Department of Human Rights which, under the legislation, is authorized to adopt any rules necessary to implement and enforce the new law.
As the amendment is part of the IHRA, it applies to any employer with one or more employees during 20 or more calendar weeks within the year of the violation. Employers will be subject to liability if the use of AI in the above practices results in discrimination against an individual in a protected class. Illinois companies using AI as part of their employment practices should therefore be aware of this new law and take steps to ensure compliance with all requirements.
