Illinois HB 3773: AI in employment under the Illinois Human Rights Act

What it is

House Bill 3773 (Public Act 103-0804) amends the Illinois Human Rights Act to address employer use of artificial intelligence in employment decisions. It adds two new civil rights violations:

1. Using AI that has the effect of subjecting employees to discrimination on the basis of a protected class with respect to a covered employment action.
2. Using ZIP codes as a proxy for protected classes in connection with the same.

The statute also requires employers to notify employees and applicants when AI is being used in covered employment decisions.

Who is on the hook

The Illinois Human Rights Act applies to employers with 1 or more employees in Illinois (for sexual harassment) and 15 or more for most other protected categories. The HB 3773 amendments inherit those thresholds. If you operate hiring AI on Illinois-resident candidates or in connection with Illinois-located roles, you are inside scope.

The statute targets the employer’s use of AI, not the vendor’s sale of it. Employers cannot offload liability by pointing at the vendor.

What the employer must do

The amendments are short. The practical obligations are:

• Do not use AI that produces discriminatory effects. Test for those effects before you deploy.
• Do not use ZIP code or other protected-class proxies in AI inputs or outputs that drive employment decisions.
• Notify applicants and employees that AI is being used in covered decisions affecting them, in the manner prescribed by Illinois Department of Human Rights rulemaking.

Enforcement

The Illinois Department of Human Rights investigates charges of discrimination under the Act. Remedies include back pay, reinstatement, front pay, compensatory damages, civil penalties, and attorney’s fees. Private right of action exists through the Department’s charge process.

Timeline

HB 3773 took effect on 1 January 2026. Department of Human Rights rulemaking is ongoing; employers should monitor the Department’s website for implementing regulations and notice requirements.

What this means in practice

For deployers of AI hiring tools, the HB 3773 obligations look like a state-law layer on top of federal Title VII disparate-impact analysis, with a specific carve-out for ZIP codes and an explicit notice obligation.

The bias audit framework that supports your NYC Local Law 144 compliance, and the FRIA fundamental-rights analysis that supports your EU AI Act compliance, both feed directly into the Illinois disparate-impact analysis. The Casework engagement produces all three.

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