Illinois HB 3773 (AI in Employment): who's covered, what it requires

Who does Illinois HB 3773 (AI in Employment) apply to?

Out of scope only if: No Illinois employees or applicants reported. The amended Illinois Human Rights Act protects the Illinois workforce; 'employer' status generally requires 1+ Illinois employees during 20+ calendar weeks in the calendar year.

• What is your role?
• Do you have employees or job applicants in Illinois?
• Do you use AI (including predictive analytics or generative AI) in employment decisions?
• Does any AI or analytics use zip code (or similar geography) as a stand-in for a protected class?
• Is the AI supplied by a third-party vendor (e.g. an ATS or screening tool)?

What are the duty tiers under Illinois HB 3773 (AI in Employment)?

Prohibited proxy discrimination (775 ILCS 5/2-102(L) (as amended by HB 3773))

Citation: 775 ILCS 5/2-102(L) (as amended by HB 3773) — https://www.ilga.gov/Documents/legislation/ilcs/documents/077500050K2-102.htm

Zip-code proxies are expressly prohibited; other geographic proxies are reached through the effects-based discrimination prohibition. Enforcement is via employee/applicant charges filed with the Illinois Department of Human Rights and adjudicated by the Illinois Human Rights Commission or circuit court, with IHRA remedies (actual damages, back pay, attorney fees) — not regulator fines.

Covered AI use in employment (775 ILCS 5/2-102(L) (as amended by HB 3773))

Citation: 775 ILCS 5/2-102(L) (as amended by HB 3773) — https://www.ilga.gov/Documents/legislation/ilcs/documents/077500050K2-102.htm

Enforced through IDHR charges (Human Rights Commission or circuit court), not regulator fines; failing to give the AI notice is itself a civil rights violation. IDHR notice-mechanics rulemaking remains in flux (amendments proposed 15 May 2026; the 10 June 2026 hearing was canceled) — the statutory duties apply regardless, but notice mechanics may change when rules finalize. Unrelated Illinois AI laws that do NOT add employer duties here: SB 315 (P.A. 104-0538, signed 6 July 2026, in force 1 January 2027 for frontier developers training above 10^26 operations, with the heavier large-developer duties from 1 January 2028) and the WOPR Act therapy ban (in force since 1 August 2025 — covered in the US Conversational AI pack).

In scope — no covered AI use (775 ILCS 5/2-102)

Citation: 775 ILCS 5/2-102 — https://www.ilga.gov/Documents/legislation/ilcs/documents/077500050K2-102.htm

What are the obligations and deadlines under Illinois HB 3773 (AI in Employment)?

What should you do about each obligation?

Notify employees and applicants of AI use in employment decisions (775 ILCS 5/2-102(L)(2))

Give notice that AI is used for covered employment decisions — recruitment, hiring, promotion, renewal, training selection, discharge, discipline, tenure, or terms and conditions. The statute's text says notice 'to an employee'; notice to applicants follows from the covered recruitment and hiring decisions and IDHR's stated position, so include them. IDHR's implementing rules — which specified plain readable language, workforce languages, disability accessibility, and annual / 30-day / job-posting timing — were proposed 15 May 2026 and WITHDRAWN 2 June 2026, so timing and means of notice are currently unspecified. Treat those format and timing specifics as best practice pending re-proposed rules.

Ensure AI in employment decisions does not discriminate (775 ILCS 5/2-102(L)(1))

Using AI that has the effect of subjecting employees or applicants to discrimination on the basis of protected classes is a civil rights violation. Vet models and tools with bias testing and validation records, and re-test after material changes.

Vet vendor-supplied AI tools (bias testing and audit rights) (775 ILCS 5/2-102(L)(1) (effects-based liability standard))

You remain responsible under the effects-based discrimination prohibition for outcomes produced by vendor tools you use — there is no vendor safe harbor. Obtain bias-testing and validation documentation from the vendor, secure contractual audit and cooperation rights, and record your own periodic adverse-impact checks on the tool's real outcomes.

Stop using zip code as a proxy for protected classes (775 ILCS 5/2-102(L)(1))

The Act expressly prohibits the use of zip codes as a proxy for protected classes in covered employment decisions — remove the feature or the model. Other geographic proxies (census tract, neighbourhood, radius) are not expressly named, but they risk violating the effects-based discrimination prohibition in 2-102(L)(1), a different legal theory with the same practical fix.

Preserve AI notices and related records (recommended practice) (IDHR proposed Subpart J (proposed 15 May 2026, withdrawn 2 June 2026))

No AI-specific retention rule is currently in force: IDHR's proposed rules — which would have extended general employment-record retention under 44 Ill. Adm. Code 2520.110 from one year to three years and required preservation of AI notices, postings, and disclosures, with preservation until any charge is adjudicated — were withdrawn on 2 June 2026 with no revised timeline announced. Retaining those records for at least three years remains the recommended, forward-compatible practice, and general IHRA/EEO recordkeeping and litigation-hold duties still apply.

Disclaimer

Compliance guidance, not legal advice. Confirm obligations with counsel. Content version 2026.09.08-1, verified 2026-09-08.

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