What is Illinois HB-3773?
A Guide to Illinois HB-3773 Compliance
Effective January 1, 2026
Impacts All Stages Of Employment, Not Just Hiring
Mandatory Disclosures To Candidates And Employees
FAQs About Illinois HB-3773
Steps to Achieve Compliance
High-Level Overview
What are the core concepts of HB-3773?
Illinois HB-3773 is focused on preventing algorithmic discrimination in the workforce, and ensuring that employees are given notice about the use of AI.
Ill. HB-3773 amends the Employment Article of the Illinois Human Rights Act to prohibit discrimination from the use of AI in hiring and other employment activities.
Additionally, employers must notify employees of the use of AI.
With this bill, Illinois becomes the second state to regulate employers’ use of Artificial Intelligence in employment decisions.
Colorado SB 205, which was passed in May 2024, was the first US state to enact regulations expressly addressing potential algorithmic discrimination.
HB-3773 Scope
Who does HB-3773 apply to?
The bill applies to employers who use AI in employment in the state of Illinois.
Importantly, the bill considers the following aspects of employment:
- recruitment
- hiring
- promotion
- renewal of employment
- selection for training or apprenticeship
- discharge
- discipline
- tenure
- or the terms, privileges, or conditions of employment
This is one of the more comprehensive definitions of “employment” we have seen across similar regulations.
How does Illinois HB-3773 define “artificial intelligence”?
The act defines artificial intelligence as a “machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.”
This is very similar to the definitions given in the EU AI Act and Colorado SB205.
Compliance Requirements
What are the compliance requirements of HB-3773?
The Act imposes several compliance requirements:
1. Employers may not use AI in a way that discriminates on the basis of a protected class as it relates to “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.”
2. Employers may not use zip codes as a proxy for protected attributes.
3. Employers must notify employees of the use of AI. Note: the law only requires notifications to employees, but based on the language of the Human Rights Act, it’s not unreasonable to think the requirement is meant to apply to job applicants, too.
Non-Compliance Penalties
What are the non-compliance penalties for Illinois HB-3773?
No specific fines or penalties are mentioned. Failure to meet the requirements of this bill is considered a civil rights violation.
Status
When does Illinois HB-3773 go into effect?
Illinois HB-3773 was signed by the state governor on August 9th, 2024.
It will enter into effect on January 1st, 2026.
Steps To Compliance
How can organizations ensure compliance with Illinois HB-3773?
Drawing from our extensive work in AI governance and compliance, we’ve identified five best practices to ensure compliance:
- Conduct regular bias assessments of your AI models to check for algorithmic discrimination.
- Consider adopting an AI governance or risk management program like the NIST AI RMF or ISO 42001 to establish procedures for safely managing the use of AI in employment.
- Pay close attention to the input variables used in your AI models. While HB-3773 only mentions zip code, many other variables can be proxies for demographic statuses and lead to bias if added to a model.
- Invest in AI governance tools. Utilize tools that support compliance with HB-3773, managing AI effectively within regulatory requirements.
- Implement mandatory disclosures. Notify employees and job applicants of your use of AI. Ensure the explanation is clear to a wide audience, including less technically savvy folks. While not technically required, consider giving employees or job applicants the ability to request an alternative assessment approach, as some other laws require (NYC LL144).
Staying informed and engaged will be key to achieving Illinois HB-3773 compliance.
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