Understanding the New Legislation

Illinois has taken a significant step by enacting HB 3773, which amends the Illinois Human Rights Act (IHRA) to regulate the use of artificial intelligence (AI) in employment decisions. This law builds on previous legislation, like the Artificial Intelligence Video Interview Act (AIVIA), and aims to ensure fairness in hiring practices. Starting January 1, 2026, employers must comply with these new regulations, which define AI and generative AI, and outline how they can be used in the workplace.

Key Provisions of HB 3773

  • Employers cannot use AI in hiring, promotions, or any employment decisions that may discriminate against protected classes.
  • Zip codes cannot be used as a substitute for protected class status.
  • Employers must inform employees when AI is used for employment-related decisions.
  • The Illinois Department of Human Rights will establish rules for the implementation and enforcement of these provisions.
  • Unlike similar laws in New York City and Colorado, this law does not mandate bias audits for AI systems.

The Importance of Fairness in Employment

This legislation is crucial in promoting fairness and transparency in the workplace. By regulating AI, Illinois aims to prevent discrimination and protect employees’ rights. As AI becomes more prevalent in hiring processes, ensuring that it does not lead to biased outcomes is vital. Employers must prepare for these changes and take proactive steps to remain compliant and mitigate risks associated with AI use. This law reflects a growing recognition of the need for ethical AI practices in employment.

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