Governor J.B. Pritzker’s signing of House Bill 3773 marks a significant step in regulating the use of AI in employment decisions across Illinois, ensuring protection against discrimination and establishing clear guidelines for employers.
Illinois Governor Signs New Legislation Regulating Artificial Intelligence in Employment Decisions
Springfield, IL – On August 9, 2024, Illinois Governor J.B. Pritzker signed House Bill 3773 into law, introducing significant amendments to the Illinois Human Rights Act (IHRA). This landmark legislation explicitly regulates the use of artificial intelligence (AI) in making employment decisions, poised to impact various aspects of workplace dynamics statewide.
House Bill 3773 (HB 3773) represents Illinois’ second legislative effort focused on workplace AI, following the Artificial Intelligence Video Interview Act (AIVIA) enacted in August 2019. The AIVIA mandates that employers employing AI-enabled video interview technology must inform applicants in advance, explain how the AI functions and what attributes it assesses, and secure consent from the applicants prior to use. Additionally, the use of AI-powered facial recognition technology in the workplace could involve compliance with the Illinois Biometric Information Privacy Act (BIPA).
The newly signed HB 3773 broadens the regulatory scope beyond the provisions outlined in AIVIA and BIPA. It provides a detailed framework for the definitions of artificial intelligence and generative artificial intelligence, establishing clear guidelines on their usage within employment contexts.
Under HB 3773, artificial intelligence is defined as 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.” This definition includes generative artificial intelligence, described as an automated system capable of producing outputs that simulate human-produced content, in various forms such as text, images, multimedia, and other human-like outputs.
The legislation prohibits employers from utilising AI in processes including recruitment, hiring, promotion, employment renewal, selection for training or apprenticeship, discharge, discipline, tenure, or any “terms, privileges, or conditions of employment” where the AI could result in discrimination against employees. Discriminatory acts based on race, colour, religion, sex, national origin, age, disability, and other protected classes are explicitly guarded against by this legislation.
Furthermore, employers are prohibited from using zip codes as indicators or proxies for the aforementioned protected classes while making AI-driven employment decisions. They are also required to inform employees about the usage of AI in any of the regulated scenarios stipulated by the IHRA amendments.
The amendments stipulated in HB 3773 are set to come into force on January 1, 2026. For effective implementation and enforcement, the Illinois Department of Human Rights has been tasked with developing and adopting necessary rules. These rules are expected to detail the conditions under which notice must be given, the time frames for notifications, and the methods for delivering these notifications to employees and job applicants.
This new legislation differs from recent workplace AI laws in New York City and Colorado which mandate bias audits and other specific measures to prevent biased outcomes. However, under Illinois’ HB 3773, employees who believe they have experienced discrimination due to their employer’s use of AI in contravention of the IHRA have the right to pursue remedies similar to those available for other types of employment discrimination. Employers are encouraged to take preventive steps to mitigate the risk of biased outcomes, acknowledging the significance of these changes in workplace AI regulation.
