Illinois is the latest state to pass legislation regulating employers’ use of AI
On the 9th of August 2024, Illinois Governor JB Pryker signed into law HB3773. This bill amends the Illinois Human Rights Act in order to address employers’ use artificial intelligence (AI). The amendment clarifies it is a violation of civil rights to use AI to discriminate on the basis protected classes under Illinois law or to “use ZIP codes as a proxy” for protected classes. 775 ILCS 5-2-101(L)(1). Illinois becomes the first state to expressly prohibit the use of zip code as a proxy. 5/2-101(L)(2). The Illinois Department of Human Rights will define the contours of the obligation in the future regulations, as the amendment allows it to adopt “rules” on the circumstances and conditions which require notice, time periods for providing notice, and how to provide notice. Id.
In passing HB3773, Illinois became the second state after Colorado to require disclosures about the use of AI to make employment decisions. Other states have also introduced measures, but they do not go to the extent of Colorado’s statute. Colorado requires disclosures before AI is used as a’substantial consideration’ in an employment decision and after AI is used as a’substantial consideration’ in an adverse decision. It also requires employers allow employees and applicants to correct any inaccurate data processed when making an adverse determination and appeal an adverse judgment (with human review, if technically possible). It also requires regular bias audits and impact assessments to identify and mitigate the risks of algorithmic racism. Illinois’s new law does not include any of these features. Illinois won’t be the last state, as lawmakers and regulators continue their struggle with AI’s transformative nature in the workplace. We will continue to monitor these developments.
