Effective Jan. 1, 2026, the law amends the Illinois Human Rights Act to require employers to notify employees when AI is used in hiring, performance reviews, promotions, or discipline, and it bars AI that discriminates against protected classes, including through ZIP‑code proxies.
HB 3773 became effective on Jan. 1, 2026 and updates the Illinois Human Rights Act. The amendment applies statewide to all employers covered by the Act.
Under the new rule, employers must inform employees whenever artificial intelligence is used to assist with hiring decisions, performance evaluations, promotions, or disciplinary actions. The notice must be given before the AI‑based decision is made.
The law also prohibits the use of AI systems that result in discrimination against any protected class. This includes AI that relies on ZIP‑code information that could serve as a proxy for protected characteristics. Employers must ensure their AI tools do not produce biased outcomes.
Sources & citations #
- The law amends the Illinois Human Rights Act, takes effect on Jan. 1, 2026, requires AI disclosure in hiring, reviews, promotions, discipline, and bans discriminatory AI including ZIP‑code proxies.
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