On January 1, 2026, an amendment (HB 3773) to the Illinois Human Rights Act will take effect. The amended law will prohibit the use of AI in employment decisions (such as recruitment, hiring, promotion, or discipline) if it leads to discrimination based on protected classes or uses zip codes as a proxy for such classes. In addition, it will require employers to notify employees and applicants about artificial intelligence (AI) usage in employment decisions.
The law will apply to all Illinois employers, except places of worship, religious corporations, associations, educational institutions, society, and non-profit religious-based nursing institutions.
Next Steps
The Department will establish rules for implementing and enforcing these requirements, including guidelines on when and how to provide notice. Until this time, employers who use AI in recruiting or other employment decisions should consider the following:
- Understand how AI is currently used in your organization.
- Assess potential biases in AI algorithms and data.
- Develop policies and procedures for AI usage and employee notification.
- Stay updated on implementing regulations from the Illinois Department of Human Rights.
HR Works will continue to monitor this topic and provide updated information as it is available.
