Illinois Governor J.B. Pritzker has signed a significant piece of legislation aimed at addressing the use of artificial intelligence (AI) in employment decisions. On August 9, 2024, Governor Pritzker signed into law House Bill 3773 (HB 3773). This new law introduces stringent requirements and protections for employees to ensure that AI is used transparently and fairly. HB 3773 amends the Illinois Human Rights Act, extending its provisions to cover AI-driven discrimination and requiring clear notifications to employees when AI is utilized in decision-making processes.
HB 3773 prohibits employers from using AI systems that could result in discrimination against employees or job applicants based on protected characteristics, such as race, gender, age, or disability. Specifically, the law bars the use of AI that has a discriminatory impact on hiring, promotions, discharges, and other employment conditions. Moreover, the Act prohibits employers from using zip codes as a proxy for protected classes, a practice that could indirectly reinforce biases against certain groups.
The law defines “artificial intelligence” broadly as any machine-based system that uses inputs to generate outputs—such as predictions, recommendations, or decisions—that influence either physical or virtual environments. This definition also encompasses “generative artificial intelligence,” which includes systems capable of producing human-like content, such as essays, images, or videos, when prompted by users.
Transparency is a central component of HB 3773. The Act mandates that employers must inform employees when AI is being used to make or assist in employment decisions. This notification requirement is intended to give employees a clearer understanding of how their information is being processed and evaluated by AI tools. Additionally, the Illinois Department of Human Rights (IDHR) will be responsible for developing rules regarding how and when these notifications must be delivered.
In cases where an employee believes that AI was used in a manner that resulted in discrimination, the complaint process follows existing procedures under the Illinois Human Rights Act. Employees must first file a complaint with the IDHR. The department then has 100 days to investigate and determine whether there is substantial evidence supporting the claim. If the IDHR finds no substantial evidence, the complaint may be dismissed, but the employee can seek a review of this decision before the Illinois Human Rights Commission. If substantial evidence is found, the case can proceed either before the Commission or in an Illinois circuit court. Available remedies for violations include actual damages, civil penalties, attorneys’ fees, and compliance reporting requirements.
HB 3773 applies to all employers in Illinois with at least one employee, marking a broad expansion of the state’s employment laws. As a result, businesses will need to carefully review their AI tools and practices to ensure compliance with the new regulations. This includes auditing AI systems for potential biases, providing clear notifications to employees, and establishing robust procedures for handling any discrimination claims that arise.
For employers, the new law underscores the importance of responsible AI use in the workplace. With the rapid evolution of AI technologies, this legislation positions Illinois as a leader in protecting workers from the potential risks associated with AI-driven decisions while promoting transparency and fairness in employment practices.
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If you’re wondering how Illinois’ new AI regulations and policies, or any other AI legislation around the world, could impact you, don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance while answering your questions and concerns.
