Illinois the Latest State to Enact Legislation Regulating Employers’ Use of AI
On August 9, 2024, Illinois Governor JB Pritzker signed into law HB3773 , a bill amending the Illinois Human Rights Act to address employers’ use of artificial intelligence (AI). The amendment clarifies that it is a civil rights violation to use AI that has the effect of discriminating on the basis of protected classes under Illinois law, or to “use zip codes as a proxy for protected classes. ” 775 ILCS 5/2-101(L)(1). In doing so, Illinois becomes one of the first states to expressly ban the use of zip codes as a proxy. In addition, the amendment also requires employees to “provide notice” to employees when they use AI for purposes of “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms privileges, or conditions of employment. ” Id. 5/2-101(L)(2). Forthcoming regulations should define the contours of this obligation, as the amendment empowers t...