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Illinois adds disclosure requirements and protections for AI use in employment

14 August 2024

Employers in Illinois will soon need to (1) tell their employees and applicants when artificial intelligence (AI) is being used in employment and (2) be prohibited from using AI in a manner that discriminates against protected classes. The law goes into effect on January 1, 2026, and applies even to employers that have a single employee in Illinois.

On August 9, 2024, Illinois Gov. JB Pritzker signed into law HB 3773, which amends the Illinois Human Rights Act by adding as a civil rights violation employers’ use of AI in recruitment, hiring, promotion, discipline, termination, privileges or conditions of employment in a manner that discriminates against protected classes. Employers are also prohibited from using ZIP codes as a proxy for protected classes.

In addition, HB 3773 requires employers to notify workers about the use of AI. It also directs the Illinois Department of Human Rights to adopt any rules needed to implement and enforce the law, including rules to determine how and when employers will need to provide notice that they’re using AI systems.

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Authored by Mark Brennan, Katy Milner, Tao Leung, and Ryan Thompson.