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AI Compliance DocumentsIn effect: January 1, 2026

Illinois HB3773 · In effect since January 1, 2026

Your Hiring Software
Is Now an IDHR Issue

If you use AI to screen, rank, or evaluate candidates or employees in Illinois, HB3773 requires you to give them notice — and to make sure your tools aren't discriminating. That obligation exists right now, even without final IDHR rules.

Built from the enacted statute text (Public Act 103-0804) on ilga.gov. Not summaries. Not paraphrases. Not training data.

Get All 6 Documents — $299
Instant downloadStatute-cited

$16,000

per violation, first offense
775 ILCS 5/8A-104

$70,000

per violation, repeat offenders
775 ILCS 5/8A-104

Per Violation

each aggrieved party counts
IDHR investigates charges

Deep Dive — How the Law Actually Works

HB3773 amends the Illinois Human Rights Act by adding subdivision (L) to Section 2-102 (775 ILCS 5/2-102(L)). It does exactly two things: prohibits using AI in a way that has a discriminatory effect, and requires notice to employees and applicants when AI is used for employment decisions.

The law covers recruitment, hiring, promotion, discharge, discipline, tenure, and the terms, privileges, or conditions of employment. “Artificial intelligence” is defined broadly — including generative AI.

The notice details are delegated to IDHR. As of March 2026, IDHR has not published implementing rules. But the underlying obligation is live as of January 1, 2026.

Here's what's actually happening.

Illinois HB3773 became law on January 1, 2026. It doesn't matter where your company is headquartered. If you have employees or applicants in Illinois and you use any form of AI in employment decisions — resume screening, performance analytics, scheduling tools — you have obligations under this statute right now.

The statute is actually short. Two paragraphs. One says don't use AI in a way that discriminates. The other says tell your employees when you're using AI for employment decisions. That's the entire operative text. The complication is that the specifics of the notice requirement are delegated to IDHR — and IDHR hasn't finished writing them yet.

IDHR Rules Are Not Finalized Yet

As of March 2026, the Illinois Department of Human Rights has not published implementing rules specifying the exact format, timing, or means for the required AI notice. IDHR's own page states rules are in development. Our templates address the statutory requirements directly — when rules are finalized, we update.

“No rules yet” does not mean “no obligation yet”

The statute is already in effect. An employee can file a charge with IDHR today alleging you used AI without notice. The non-discrimination provision needs no implementing rules — using AI that has a discriminatory effect is already a civil rights violation. If your resume screener disproportionately screens out candidates by race, sex, or disability, you are in violation now.

Does this apply to you?

If you answer “yes” to any of these, HB3773 likely covers your business. There is no minimum employee count in the statute. It applies to any Illinois employer using AI for covered employment decisions (775 ILCS 5/2-102(L)).

Self-assessment: Does Illinois HB3773 apply to you?
HR team reviewing AI employment compliance documents

6 Documents. Every Employer Obligation.

Each document maps to specific requirements of 775 ILCS 5/2-102(L) and the IDHR legislative update.

1

Employee & Applicant AI Notification

775 ILCS 5/2-102(L)

The notice the statute requires you to give employees and applicants that you are using AI in employment decisions. Drafted around the statutory requirement — ready to update when IDHR publishes its implementing rules.

2

AI System Inventory

775 ILCS 5/2-102(L)

You cannot give notice about systems you don't know about. This template documents every vendor platform and automated tool that touches hiring, promotion, discipline, or other employment decisions.

3

Impact Assessment Framework

775 ILCS 5/2-102(L)

The law prohibits AI use that has a discriminatory effect. This framework gives you a documented process for periodically reviewing your AI tools for disparate impact on protected classes.

4

Human Oversight Protocol

775 ILCS 5/2-102(L)

Documents who reviews AI-flagged employment actions, how edge cases are escalated, and how the system is used as a tool rather than the sole decision-maker.

5

Compliance Checklist

All sections

Every employer obligation under HB3773 in one place. Cross-referenced to statute sections and mapped to the IDHR legislative update page so you can verify each requirement yourself.

6

Accommodation Request Form

775 ILCS 5/2-102(L)

If an employee or applicant has concerns about AI being used in decisions that affect them — particularly based on a disability or other protected characteristic — this documents the process for raising that concern.

The Per-Violation Math

Penalties under 775 ILCS 5/8A-104 are imposed per violation and per aggrieved party:

  1. Up to $16,000 — first civil rights violation
  2. Up to $42,500 — one prior violation within the past five years
  3. Up to $70,000 — two or more prior violations within the past seven years

A discriminatory AI tool used across hundreds of applicants can mean a separate penalty for each affected person. Beyond fines, the Illinois Human Rights Commission can order actual damages, back pay, hiring or reinstatement, and attorney fees.

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Questions we hear a lot.

We're not headquartered in Illinois. Does this still apply?
Yes. The law applies to any employer who has employees or applicants in Illinois and uses AI for employment decisions affecting them. The statute covers the employee's location, not the company's. A Texas company using AI to screen candidates who would work in Illinois is covered.
I have no idea if our tools use AI.
That's the most common thing we hear. The statute defines AI broadly: any machine-based system that infers from its input how to generate predictions, recommendations, or decisions. Resume screeners, ATS scoring features, performance analytics, and AI-assisted scheduling tools all qualify. Our AI System Inventory template walks you through auditing your vendor stack. Start with your free assessment.
Can't I just wait until IDHR publishes its rules?
That's a risky bet. The statute is already in effect. The non-discrimination provision needs no implementing rules — using AI that has a discriminatory effect is already a civil rights violation under 775 ILCS 5/2-102(L). The notice obligation is also live; IDHR's rules will clarify the specifics, not create the obligation. An employee can file a charge today. Having a written notice ready when the rules come out lets you update it instead of starting from nothing.
What exactly does the notice need to say?
The statute says notice is required. The specifics — format, timing, content — are delegated to IDHR, which hasn't published rules yet. Based on the statutory text, a reasonable notice identifies that you use AI, explains what employment decisions it's involved in, and provides contact information for questions. Our Employee & Applicant AI Notification template is built around this framework and is designed to be updated when IDHR's rules are finalized.
What about zip codes?
The statute specifically prohibits using zip codes as a proxy for protected classes in AI-assisted employment decisions (775 ILCS 5/2-102(L)). If your AI tools use location data as an input, this is a specific thing to review in your Impact Assessment Framework.
Are these documents legal advice?
No. We are not a law firm. These are compliance templates built from the enacted statute text — a defensible starting point, not a substitute for legal counsel. A lot of our customers hand these to their employment attorney for review. That saves their attorney hours of drafting time at $400 an hour.
What happens when IDHR publishes its rules?
We update. Our templates address the statutory requirements directly. When IDHR's implementing rules are finalized, we'll update the documents — particularly the Employee & Applicant AI Notification — and notify customers.

Verified Against Enacted Statute Text

Every requirement in these documents traces to a specific section of 775 ILCS 5/2-102(L) or 775 ILCS 5/8A-104. No summaries. No AI-generated legal claims.

Statute-sourced

Built from the enacted text on ilga.gov

IDHR-tracked

Monitored against the IDHR legislative update

Attorney-ready

Hand directly to employment counsel for review

Did You Know? — Quick Facts About HB3773

Illinois was one of the first states to regulate AI in employment when it passed the Artificial Intelligence Video Interview Act (820 ILCS 42), which took effect on January 1, 2020, regulating AI analysis of video interviews.

Source: Illinois General Assembly

The EEOC launched a formal initiative on Artificial Intelligence and Algorithmic Fairness in October 2021 to examine how AI tools used in hiring comply with federal anti-discrimination laws.

Source: U.S. Equal Employment Opportunity Commission

New York City's Local Law 144, which requires annual bias audits of automated employment decision tools, began enforcement on July 5, 2023 — making it one of the earliest local AI hiring laws in the country.

Source: NYC Department of Consumer and Worker Protection

Under the Illinois Human Rights Act, repeat violators face escalating penalties: up to $16,000 for a first offense, $42,500 for a second within five years, and $70,000 for employers with two or more prior violations within seven years.

Source: Illinois General Assembly (775 ILCS 5/8A-104)

Sources

  1. Public Act 103-0804 (HB3773 Enrolled Text) — Illinois General Assembly
  2. Illinois Human Rights Act, Section 2-102 (775 ILCS 5/2-102)
  3. Public Act 104-0417 (Subsequent Amendment, effective August 15, 2025)
  4. Illinois Human Rights Act, Section 8A-104 — Penalties (775 ILCS 5/8A-104)
  5. IDHR Legislative Update: Artificial Intelligence in Employment
Professional reviewing employment compliance documents on a laptop

In effect since January 1, 2026

Don't wait for a complaint.

6 documents. Mapped to the statute. Ready to update when IDHR publishes its rules. Instant download. All sales final. $299.

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These documents are compliance templates, not legal advice. We recommend attorney review for your specific situation.