What is Illinois HB 3773?

How Illinois HB 3773 is defined

HB 3773 passed both houses of the Illinois General Assembly on May 24, 2024, and the Governor approved it on August 9, 2024, as Public Act 103-0804. It took effect on January 1, 2026, according to the bill status page. It amends Sections 2-101 and 2-102 of the Illinois Human Rights Act (775 ILCS 5). This summary reflects the Illinois General Assembly's bill status, Public Act, and statute pages, the Illinois Register as reported in the Joint Committee on Administrative Rules' Flinn Report, and the Illinois Department of Human Rights (IDHR) website as of November 11, 2026. This page is a general overview, not legal advice.

The law uses these terms:

• Artificial intelligence: "A machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments." The definition includes generative AI.
• Employer: Under the Act, this includes any person employing one or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation, along with other categories such as the State and parties to public contracts.

The law adds these provisions to Section 2-102(L):

• Discriminatory effect: It is a civil rights violation for an employer to use AI "that has the effect of subjecting employees to discrimination on the basis of protected classes." This applies to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, and the terms, privileges, or conditions of employment.
• Zip codes: It is also a violation to use zip codes as a proxy for protected classes.
• Notice: It is a violation "to fail to provide notice to an employee that the employer is using artificial intelligence" for those purposes.
• Rules: IDHR must adopt rules to implement the section, including on the circumstances that require notice, the time period for providing it, and the means of providing it.

Why Illinois HB 3773 matters for talent teams

The covered activities start with recruitment and hiring, so the law reaches AI used across the employment lifecycle in Illinois. The test in the statute is whether the AI "has the effect of" subjecting employees to discrimination, which puts the focus on outcomes. One common way to look at outcomes across groups is adverse impact analysis.

The notice details are still open. IDHR proposed rules on the use of AI in employment as a new Subpart J of 56 Ill. Adm. Code 2520, published in the Illinois Register on May 15, 2026 (50 Ill. Reg. 6794), with a public hearing set for June 10, 2026 (Flinn Report, May 15, 2026). The Flinn Report of June 26, 2026 states that IDHR withdrew the proposed amendments "to further consult and collaborate with other State agencies." As of November 11, 2026, IDHR's Legislative Updates page shows "No upcoming events" under current comment periods.

HB 3773 is separate from the Illinois Artificial Intelligence Video Interview Act (820 ILCS 42), in effect since January 1, 2020. That law applies when an employer asks applicants to record video interviews and uses AI to analyze them. Before the interview, the employer must notify the applicant, explain how the AI works and what general types of characteristics it evaluates, and get consent. It also limits sharing of videos, requires deletion within 30 days of an applicant's request, and requires demographic reporting from employers that rely solely on AI analysis to decide who gets an in-person interview. HB 3773 covers AI use in employment decisions more broadly.

Other places regulate AI in hiring differently, including New York City under NYC Local Law 144, Colorado under the Colorado AI Act, and the European Union under the EU AI Act.

How Findem approaches Illinois HB 3773

Findem is the People Intelligence Platform. Findem's AI does not reject candidates or make hiring decisions, and people review results before they influence hiring decisions. Read more in Responsible AI at Findem.

Findem's expert-labeled, evidence-backed signals are designed to provide explainability at every step, so a reviewer can see why someone was surfaced. No tool makes an employer compliant on its own. Whether the Illinois law covers a particular use is a question for each employer and its counsel.

Further reading

• AI hiring laws in 2027: What Colorado, Connecticut, and California require
• AI governance in HR: A practical guide