Effective 1 January 2026, Illinois House Bill 3773 (HB 3773) amends the Illinois Human Rights Act, (IHRA) to expressly prohibit employers from using artificial intelligence (AI) that “has the effect of subjecting employees to discrimination on the basis of protected classes.” Specifically, Illinois employers cannot use AI that has a discriminatory effect on employees, “[w]ith respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.”
Employers are increasingly using AI during the employment life cycle, including resume scanners, chatbots, and AI-powered performance management software. While AI tools can streamline processes and increase data-based decision making, they also carry risks, such as perpetuating bias and discrimination. In light of HB 3773, Illinois employers should be mindful of these risks and carefully select and regularly audit their AI applications to ensure that the applications do not have a discriminatory effect on applicants1 and employees.
HB 3773 also requires employers to notify employees and applicants when using AI during recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or when the use could affect the terms, privileges, or conditions of employment To comply with this mandate, Illinois employers must understand how the AI-powered...
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