Illinois Enacts Broad AI Employment Regulations Under Human Rights Act
Illinois officially prohibits employers from using AI in a discriminatory manner and mandates worker notification regarding AI use in hiring and employment decisions.
Illinois joins states like Utah and Colorado in regulating artificial intelligence by passing HB 3773, a new law that amends the Illinois Human Rights Act. The legislation directly targets the use of AI, including generative AI, in employment contexts such as recruitment, hiring, promotions, discipline, and discharge. Employers in the state face strict new rules starting January 1, 2025, regarding how they implement these automated systems in their daily operations.
The new law explicitly prohibits employers from using AI in ways that cause discriminatory effects based on protected characteristics like race, age, sex, and disability. It also prevents companies from using zip codes as a proxy for protected classes when utilizing AI decision-making tools. Additionally, the legislation requires employers to provide notice to employees and applicants when AI plays a role in their employment decisions.
The law defines artificial intelligence consistently with other major regulations, describing it as a machine-based system that infers how to generate outputs like predictions, content, or decisions. While the amendment establishes clear anti-discrimination boundaries and notice requirements, it currently lacks the detailed affirmative guidance seen in some other state AI laws. Employers who use AI in Illinois must immediately prepare to comply with these anti-discrimination mandates and transparency rules.