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Illinois Passes AI Law Impacting Employment Practices (1/1/26)


Following laws enacted in jurisdictions such as Colorado, New York City, Tennessee, and Illinois’s own Artificial Intelligence Video Interview Act, on Aug. 9, Illinois Gov. J.B. Pritzker signed House Bill 3773, also known as the “Limit Predictive Analytics Use” bill. The bill amends the Illinois Human Rights Act by adding certain uses of artificial intelligence, including generative AI (GenAI), to the long list of actions by covered employers that could constitute civil rights violations.

The amendments made by HB 3773 will take effect Jan. 1, 2026, and add two new definitions to the law.

According to the amendments, AI means “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 of AI includes GenAI, which has its own definition: “an automated computing system that, when prompted with human prompts, descriptions, or queries, can produce outputs that simulate human-produced content, including, but not limited to, the following: 1) textual outputs, such as short answers, essays, poetry, or longer compositions or answers; 2) image outputs, such as fine art, photographs, conceptual art, diagrams, and other images; 3) multimedia outputs, such as audio or video in the form of compositions, songs, or short-form or long-form audio or video; and 4) other content that would be otherwise produced by human means.”
Read the full article
AI Regulation Continues to Grow as Illinois Amends Its Human Rights Act
SHRM via Jackson Lewis | Aug 2024

Read HB 3773

 

Law Firm Articles

Illinois employers should pay close attention to the new disclosure requirements in Illinois’ new AI law, effective January 1, 2026, and closely monitor activity relating to clarifying guidelines issued by the Illinois Department of Human Rights. Additionally, Illinois employers would be well-advised to review their current use of AI in employment decisions in order to ensure compliance with both the new law and their existing non-discrimination obligations.
Legal Update: New Illinois AI Law Requires Employee Notice, Affirms Existing Employer Nondiscrimination Duties
Seyfarth | Aug 2024

 

HB 3773 amends the Illinois Human Rights Act, which applies to any person (with certain limited exceptions) employing one or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation, to make it a civil rights violation for employers to use AI in ways that result in unlawful discrimination against protected classes. The law targets the use of AI in various employment processes, including “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure or [the] terms, privileges or conditions of employment.” It also addresses the use of zip codes as a proxy for protected classes, recognizing the potential for such practices to lead to discriminatory outcomes.
Illinois Steps Up AI Regulation in Employment: Key Takeaways for Employers
Ogletree | Aug 2024

 

Illinois’ new AI law empowers the Illinois Department of Human Rights (IDHR) to adopt any rules necessary for the implementation and enforcement of this legislation. We anticipate the IDHR will issue guidance regarding implementation and enforcement prior to its effective date.

The amendment also appears to work in conjunction with the other Illinois AI laws that have either recently gone into effect or are pending before the state Legislature, including (1) the Illinois Artificial Intelligence Video Interview Act (820 ILCS 42/5) enacted in 2020, which applies to all employers that use an AI tool to analyze video interviews of applicants for positions based in Illinois; and (2) the proposed Automated Decision Tools Act (HB 5116), which would require “deployers” to perform an impact assessments that is accessible to the IDHR in employment decision
Illinois Enacts Artificial Intelligence Law Focused on Employment Practices
Duane Morris | Aug 2024

 

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