Answers

What is HB 3773 and how do I comply?

By Adam Lysinski, Attorney · Updated May 16, 2026

Illinois HB 3773 amends the Illinois Human Rights Act to regulate how employers use AI in employment decisions, with notice obligations and an anti-discrimination rule.

Call (773) 777-9888 — 5-min triage

Short answer

HB 3773, enacted as Public Act 103-0804, amends the Illinois Human Rights Act to govern how employers use artificial intelligence and automated decision-making in employment. It makes it a civil rights violation to use AI in a way that discriminates against protected classes, and to use ZIP code as a proxy for a protected class. It also requires employers to notify employees when AI is used in covered employment decisions.

What HB 3773 does

HB 3773 was enacted as Public Act 103-0804 and amends the Illinois Human Rights Act. It addresses employer use of AI and automated decision-making in employment decisions — recruiting, hiring, promotion, discipline, discharge, and related terms and conditions of employment.

Anti-discrimination rule. It is a civil rights violation for an employer to use AI that has the effect of discriminating against employees on the basis of a protected class under the Illinois Human Rights Act.

ZIP-code proxy rule. It is also a violation to use ZIP code as a proxy for a protected class in AI-driven employment decisions.

Notice obligation. Employers must notify employees when AI is used in connection with covered employment decisions.

Practical compliance steps

Inventory. Identify every place AI or automated decision-making touches an employment decision — applicant screening, resume ranking, video-interview analysis, performance scoring, scheduling tools.

Vendor diligence. Much employment AI is third-party software. Understand what each tool does, what data it uses, and whether the vendor has tested it for disparate impact. Contract terms should address this.

Notice. Build a clear process for notifying employees and applicants when AI is used in covered decisions.

Bias testing and human oversight. Test outcomes for disparate impact across protected classes, confirm no ZIP-code proxying, and keep meaningful human review in the decision loop.

Documentation. Keep records of the inventory, vendor diligence, notices, and testing — the file that demonstrates a good-faith compliance program.

Why this is worth getting right

Employment AI tools are now common, often adopted without legal review, and frequently supplied by vendors whose disparate-impact testing the employer never sees. HB 3773 makes the employer — not the vendor — answerable under the Illinois Human Rights Act. A compliance review before a complaint is far cheaper than defending one after.

Related questions

What is HB 3773 in Illinois?
HB 3773, enacted as Public Act 103-0804, amends the Illinois Human Rights Act to regulate employer use of artificial intelligence and automated decision-making in employment decisions. It addresses discrimination, ZIP-code proxying, and employee notice.
What does HB 3773 require employers to do?
HB 3773 makes it a civil rights violation to use AI that discriminates against protected classes or that uses ZIP code as a proxy for a protected class, and it requires employers to notify employees when AI is used in connection with covered employment decisions.
How does an employer comply with HB 3773?
Practical steps include inventorying every use of AI in employment decisions, conducting vendor diligence on third-party tools, building an employee-notice process, testing outcomes for disparate impact and ZIP-code proxying, keeping human oversight in the decision, and documenting the compliance program.
Who is responsible if an AI hiring tool discriminates?
Under HB 3773 the employer is answerable under the Illinois Human Rights Act, even when the AI tool was supplied by a third-party vendor. That is why vendor diligence, bias testing, and documentation matter — the employer cannot simply rely on the vendor's assurances.

Continue reading

Need to talk to Adam?

The 5-minute triage call is free. Adam answers honestly: yes I can help and here’s what comes next, or no this is not my lane and here’s who handles it.

Call (773) 777-9888

Start here

Where can Adam help today?

I’m selling a home → I’m buying a home → I need a will or trust → I’m a real estate broker →