On August 9, 2024, Illinois Governor JB Pritzker signed HB 3773 into law, making it the most recent state to regulate artificial intelligence (AI) use within employment. The new law will take effect on January 1, 2026, and amends the Illinois Human Rights Act by forbidding employers from deploying AI systems that discriminate against protected classes or as proxies for discrimination via ZIP codes.
Additionally, employers will now have to disclose when they use an algorithm at any stage of the employee life cycle – whether it be recruitment/hiring processes, promotions, demotions, or terminations, among other things. These changes are meant to shed light on where these systems are being used within organizations and prevent biased decision-making through them.
According to the revision of the bill, civil rights prohibit the use of any AI system that may result in bias against color, race, sex, age, or any other protected characteristic as per Illinois legislation. Employers can’t use ZIP codes as a substitute for these classes because such practices may lead to indirect discrimination.
Additionally, under this law, organizations must disclose their use of significant decision-making algorithms in...
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