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Illinois HB 3773: AI hiring discrimination, and how to defend against it
Illinois now bans AI that produces a discriminatory effect in employment. No audit is mandated, but when a claim lands the employer has to show the tool does not discriminate. Adverse-impact testing is how you show it.
Last reviewed: August 2026
Adverse impact testing for one AI hiring tool, with the evidence and documentation to show it does not produce a discriminatory effect under the Illinois Human Rights Act (HB 3773).
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What HB 3773 requires
HB 3773 amends the Illinois Human Rights Act. Since 1 January 2026 it is a civil-rights violation for an employer to use AI that has the effect of discriminating against a protected class, at any stage from recruitment to discharge. It reaches disparate impact, not only intent, and separately bans using a ZIP code as a proxy for a protected class.
Employers must notify applicants and employees when AI is used in covered employment decisions. The detailed notice rules (the Department of Human Rights “Subpart J” rules) were proposed in May 2026 and then withdrawn for further work, so the exact mechanics are not settled, but the statutory duty to give notice applies now.
The law does not mandate a bias audit. Enforcement runs through the existing Human Rights Act process, a charge to the Illinois Department of Human Rights and then the Human Rights Commission or the courts, rather than a new standalone private right of action.
Documentation and defensibility
Adverse-impact testing
Statistical testing across protected classes to show your hiring tool does not produce a discriminatory effect, and to catch it early if it does.
Proxy checks
Testing for ZIP code and other proxies that can stand in for a protected class, as the law specifically calls out.
Notice documentation
Clear records of where AI is used and the notice given to candidates and employees, ready for the finalised rules.
One dataset, two jurisdictions
The data we assemble for a New York City Local Law 144 bias audit is largely the same data Illinois defensibility needs. If you already run a Local Law 144 audit, adding Illinois adverse-impact testing is a small marginal cost.
Note: the separate Illinois AI Video Interview Act continues to apply, with its own notice, consent and deletion duties for AI-analysed video interviews. We can help you document that too.
This page is general information, not legal advice. AI employment law is moving quickly; confirm your position with qualified counsel before relying on it.
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