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Legislators in Illinois passed a bill which amended the state’s Human Rights Act to include new regulations that will help prevent discriminatory employment decisions through the use of AI.

House Bill 3773

Illinois House Bill 3773 (HB3773) was created to help prevent discriminatory employment practices. A synopsis of the law says employers who use predictive data analytics when making employment decisions may not consider factors such as an applicant’s race or zip code to reject any candidate or take adverse employment actions against any individual. The bill also notes that predictive data analytics may be used to "support the inclusion of diverse candidates in making employment decisions."

Predictive data analytics includes the use of Artificial Intelligence (AI). HB3773 defines AI 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 includes generative AI, which is an automated system that can simulate human responses when faced with prompts or queries.

HB3773 says employers must inform people if they are using AI to help make decisions regarding recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.

The bill was signed by Governor J. B. Pritzker in May of 2024. Legislators took steps to help employers have ample time to prepare for compliance. This law goes into effect on January 1, 2026.

Fair Hiring Policies

The purpose of HB3773 is to prevent employment discrimination and encourage fair hiring policies. While AI has become increasingly popular in various aspects of life, there is concern that it could lead to discriminatory practices. To help regulate this tool, more AI related bills are expected to be passed in the coming years. Employers everywhere should be aware of the potential for such laws so they can maintain compliant procedures.

Every organization is encouraged to establish and follow fair hiring policies. These documents should be available to everyone who is involved in hiring or related decisions. It’s also a good idea to review your policies annually to make sure they account for new and changing laws.

Background Screenings

Running comprehensive background checks is an important part of the hiring process. These reports help organizations make informed decisions, maintain safe workplaces and conduct due diligence. Employers are also encouraged to have written screening policies which help ensure everyone is treated similarly and fairly. Such documents may also include information about employment laws that are in effect wherever the organization operates.

If your business needs background checks for employees, contractors or volunteers, please contact us. Our friendly and highly experienced team can help you customize screening packages that fit your particular needs, comply with applicable laws and conform to industry standards. We are based in California and available to assist you Monday through Friday from 5am to 6pm PT.