AI Regulation Guide · Illinois
Illinois HB 3773 (AI in Employment): who's covered, what it requires
Illinois HB 3773 (AI in Employment) carries 5 tracked obligations for companies in scope. This guide lists who is covered, the duty tiers, and every obligation with its deadline and statutory citation — all from Shieldra's versioned regulation pack, verified 2026-07-29.
By the Shieldra Compliance Team · Last updated 2026-07-29
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 (signed 6 July 2026, applies from 1 January 2028, $500M+ frontier developers only) 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)?
| Obligation | Who | Deadline | Citation |
|---|
| Notify employees and applicants of AI use in employment decisions | employer, employment_agency | in force since 1 January 2026 | 775 ILCS 5/2-102(L)(2) — https://www.ilga.gov/Documents/legislation/ilcs/documents/077500050K2-102.htm |
| Ensure AI in employment decisions does not discriminate | employer, employment_agency | in force since 1 January 2026 | 775 ILCS 5/2-102(L)(1) — https://www.ilga.gov/Documents/legislation/ilcs/documents/077500050K2-102.htm |
| Vet vendor-supplied AI tools (bias testing and audit rights) | employer, employment_agency | in force since 1 January 2026 | 775 ILCS 5/2-102(L)(1) (effects-based liability standard) — https://www.ilga.gov/Documents/legislation/ilcs/documents/077500050K2-102.htm |
| Stop using zip code as a proxy for protected classes | employer, employment_agency | in force since 1 January 2026 | 775 ILCS 5/2-102(L)(1) — https://www.ilga.gov/Documents/legislation/ilcs/documents/077500050K2-102.htm |
| Preserve AI notices and related records (recommended practice) | employer, employment_agency | recommended from the Act's effective date (1 January 2026) — no binding AI-specific retention rule is in force | IDHR proposed Subpart J (proposed 15 May 2026, withdrawn 2 June 2026) — https://ogletree.com/insights-resources/blog-posts/illinois-unveils-draft-notice-rules-on-ai-use-in-employment-ahead-of-discrimination-ban/ |
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 required four-year retention 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 four 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 2026.07.29-3, verified 2026-07-29.
Frequently asked questions
Who does Illinois HB 3773 (AI in Employment) apply to?
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. Coverage turns on the screening questions listed on this page — each obligation then applies its own statutory gate.
When does Illinois HB 3773 (AI in Employment) take effect?
in force since 1 January 2026. recommended from the Act's effective date (1 January 2026) — no binding AI-specific retention rule is in force
What are the obligations under Illinois HB 3773 (AI in Employment)?
Notify employees and applicants of AI use in employment decisions; Ensure AI in employment decisions does not discriminate; Vet vendor-supplied AI tools (bias testing and audit rights); Stop using zip code as a proxy for protected classes; Preserve AI notices and related records (recommended practice).
