Illinois HB 3773

Illinois HB 3773 is a 2024 amendment to the Illinois Human Rights Act that makes it a civil rights violation for an employer to use artificial intelligence in a way that results in discrimination based on a protected class, including when the AI relies on zip codes or other proxies that produce the same discriminatory effect. It takes effect January 1, 2026.

What Does HB 3773 Actually Prohibit?

The law doesn't ban AI in hiring outright. It prohibits using AI — for recruitment, hiring, promotion, discipline, or termination — in a way that subjects employees or applicants to discrimination on the basis of race, sex, disability, or other protected characteristics already covered by the Illinois Human Rights Act. It also closes a specific loophole: using a variable that functions as a substitute for a protected class, like zip code as a stand-in for race, is treated the same as using the protected class directly.

Who Has to Comply?

Any employer covered by the Illinois Human Rights Act that uses AI in employment decisions affecting Illinois-based employees or applicants. This includes employers using third-party AI-driven applicant tracking or screening vendors — outsourcing the technology doesn't outsource the liability.

Does HB 3773 Require a Bias Audit Like NYC's Law?

Not explicitly. Unlike NYC Local Law 144, HB 3773 doesn't mandate a specific independent audit process or public disclosure. It instead creates liability after the fact if discrimination results, similar to how disparate impact claims already work under federal law. That makes documentation and proactive testing more important, not less — there's no safe-harbor audit to point to if a complaint is filed.

What Notice Obligations Come With It?

The law requires employers to notify employees when AI is used for the kinds of decisions it covers. It doesn't specify the exact notice format the way NYC's law does, so employers have more flexibility but also more ambiguity about what counts as sufficient disclosure.

How Does HB 3773 Interact With Federal Law?

It runs in parallel with, not in place of, EEOC enforcement under Title VII. A hiring tool that produces adverse impact could trigger both a state Human Rights Act claim and a federal discrimination charge, so employers can't treat compliance with one as satisfying the other.

How Should Employers Prepare?

Start by inventorying every AI tool touching an employment decision for an Illinois-based role, then test each for disparate outcomes using the same adverse impact logic regulators already apply. Vendor contracts should guarantee access to the data needed to run that test, since the employer — not the vendor — carries the liability under this law.

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Frequently Asked Questions

Q: When does Illinois HB 3773 take effect?
A: January 1, 2026.

Q: Does HB 3773 require an independent bias audit?
A: No, it doesn't mandate a specific audit process; it creates liability if AI use results in discrimination, regardless of audit status.

Q: Does HB 3773 cover proxy variables like zip code?
A: Yes, using a variable that functions as a substitute for a protected class is treated the same as using the protected class directly.

Q: Who is liable if a third-party AI vendor's tool discriminates?
A: The employer using the tool typically bears liability under the Illinois Human Rights Act, regardless of who built the AI.

Q: Does this law apply to remote employees outside Illinois?
A: It applies to employees and applicants covered by the Illinois Human Rights Act, which generally means Illinois-based roles.

Q: How is HB 3773 different from NYC Local Law 144?
A: HB 3773 creates liability after discriminatory outcomes occur rather than mandating a pre-use independent audit and public disclosure like NYC's law.