Illinois HB 3773 Takes Effect: First State Law Banning AI Discrimination in Hiring Under Civil Rights Framework

Illinois HB 3773 took effect January 1, 2026, prohibiting employers from using AI — including generative AI — that produces a discriminatory effect in hiring, promotion, discharge, or other employment decisions based on protected characteristics. The law passed the Illinois House 106-0 and Senate 57-0 and was signed by Governor Pritzker on August 9, 2024. It requires employers to notify workers when AI is used in employment decisions and bans using zip codes as proxies for protected classes. The IDHR was tasked with implementing regulations.