Effective January 1, 2026

Illinois AI Hiring Law (HB 3773)

Complete guide to Illinois AI employment laws: AIVIA (video interviews) and HB 3773 (broader AI discrimination).

Devyn Bartell

Founder & CEO, EmployArmor

Published February 20, 2025

Effective Date

January 1, 2026

Who's Covered

All IL employers

Penalties

Civil rights violation

Enforcement

IL Human Rights Commission

What You Need to Know

Overview

Illinois HB 3773 amends the Illinois Human Rights Act to regulate the use of artificial intelligence in employment decisions. The law prohibits employers from using AI in ways that discriminate against employees based on protected characteristics.

Key Requirements

Notice Requirement

Employers must notify employees when AI is used for employment decisions including hiring, promotion, discipline, or termination.

Non-Discrimination

AI systems cannot be used in ways that discriminate based on race, color, religion, national origin, ancestry, age, sex, marital status, disability, military status, sexual orientation, or other protected classes.

Zip Code Prohibition

Employers cannot use zip code as a proxy for protected characteristics in AI hiring tools.

Disclosure Requirements

Must disclose the AI system's name, purpose, and what data is collected.

Vendor Liability

Third-party vendors and staffing agencies are also covered entities under HB 3773 and must comply when using AI in employment decisions.

Who Must Comply

The law applies to any employer with one or more employees in Illinois during 20 or more calendar weeks. This means virtually every business operating in Illinois is covered.

What Counts as "AI"

The law defines AI broadly to include any machine-based system that makes predictions, recommendations, or decisions influencing real or virtual environments. This includes:

Resume screening software

Candidate ranking algorithms

Video interview analysis tools

Skills assessment platforms

Chatbot screening tools

Any ATS with AI-powered features

Compliance Checklist

Inventory all AI tools used in hiring and employment decisions

Create employee notification templates for AI use

Review AI tools for potential discriminatory outcomes

Ensure zip codes are not used as proxies for protected classes

Develop disclosure documents explaining AI system purposes

Train HR team on new requirements

Update employee handbook with AI use policies

Submit annual demographic data to DCEO (if using AI-only video screening — AIVIA Section 20)

Establish process for handling employee questions about AI

Document compliance efforts for potential audits

Set up ongoing monitoring for AI tool fairness

Penalties for Non-Compliance

Fined Per Employee

Each affected employee can file a separate complaint. A company with 100 employees in Illinois could face 100+ individual civil rights charges—exposure scales directly with your headcount.

Civil Rights Violations

Violations of HB 3773 are treated as civil rights violations under the Illinois Human Rights Act. Affected individuals can:

File charges with the Illinois Human Rights Commission
Pursue civil complaints in Illinois Circuit Court
Seek compensatory damages
Request injunctive relief
Recover attorney's fees

How EmployArmor Helps

AI Tool Audit

Identify which of your hiring tools trigger Illinois compliance requirements and assess your risk level.

Disclosure Templates

Generate Illinois-compliant employee notification templates customized for your specific AI tools.

Policy Generator

Create employee handbook policies that meet Illinois disclosure requirements.

Training Module

Train your HR team on Illinois requirements with our video courses and certification quizzes.

Get Compliant Today

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Frequently Asked Questions

Does this apply to remote employees in Illinois?

Yes. If you have employees working in Illinois, even remotely, the law applies to employment decisions affecting them.

What if my ATS vendor says they're compliant?

The compliance obligation falls on the employer, not the vendor. You are responsible for ensuring proper notices and non-discriminatory use, regardless of vendor claims.

Do I need to notify every candidate?

The law focuses on employees, but best practice is to notify candidates as well if AI is used in the hiring process. This also helps with compliance in other states like NYC.

How detailed does the AI disclosure need to be?

You must disclose the name of the AI system, its purpose in employment decisions, and what data it collects. EmployArmor can generate compliant disclosure language for your specific tools.

Don't Wait Until January

Get your free compliance assessment and see exactly what you need to do before the deadline.

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Employment laws vary by jurisdiction and change frequently. Consult a qualified employment attorney for guidance specific to your situation. EmployArmor provides compliance tools and resources but is not a law firm.