A composite scenario assembled from documented cases: In January 2026, a seven-person accounting practice in Oak Park, Illinois turned on an automated resume-ranking add-on inside its cloud job board to sort 90 tax-season applicants. Nobody posted an AI disclosure because the managing partner assumed state AI hiring laws only applied to 100-person firms. In June 2026, after reading a headline that the Illinois Department of Human Rights (IDHR) had postponed its proposed Subpart J regulations, the firm again skipped writing a notice (Hinshaw, Feb 2026). Both assumptions were wrong. Under Illinois House Bill 3773 (Public Act 103-0804, 775 ILCS 5/2-102(L)), the statutory duty to notify applicants and employees took effect January 1, 2026 for employers with one or more Illinois employees (ILGA PA 103-0804).
Every covered employer must issue an Illinois HB 3773 AI employment notice whenever artificial intelligence or generative AI influences recruitment, hiring, promotion, discipline, discharge, or workplace terms, effective January 1, 2026 under 775 ILCS 5/2-102(L). Because the Illinois Human Rights Act covers employers with 1 or more Illinois workers, even five-person firms and remote employers need a disclosure like the ed.cafe Illinois HB 3773 Applicant & Employee AI Notice Fill-In Template below.
Skipping a short disclosure creates standalone civil-rights exposure even when your software shows zero statistical bias. Under 775 ILCS 5/2-102(L)(2), failing to provide notice is an independent violation carrying actual damages, back pay, civil penalties, and complainant attorney's fees via the Illinois Human Rights Commission (National Law Review; Hinshaw). Out of 48 workplace AI bills tracked across 16 states in 2025-2026 (State AI Tracker), Illinois sets the lowest headcount floor. Part of our safe use of AI tools at work hub and paired with inventorying embedded AI features inside SaaS apps, this guide provides general operational information, not legal advice.
Who must give an Illinois HB 3773 AI employment notice, including remote hires?
Any organization employing one or more employees within Illinois during 20 or more calendar weeks in the current or preceding year is an "employer" under the Illinois Human Rights Act (775 ILCS 5/2-101(B)(1)(a)) and must obey HB 3773 (775 ILCS 5/2-102(L)). Unlike federal Title VII (15 employees) or WARN (100 employees), Illinois gives zero small-business exemption.
Think of a municipal commercial fire-exit sign rule. Inspectors do not care if a storefront holds four bookkeepers or 800 analysts; if staff work inside, the lighted sign goes above the door. HB 3773 works the same way by plugging into Illinois's one-employee floor (lowered from 15 to 1 in July 2020). Where that storefront analogy breaks is remote hiring and silent SaaS updates. A physical exit sign stops at the doorway and never turns itself on overnight. Yet a 22-person Boston firm with two remote account executives working from Chicago is an Illinois employer, and an ATS vendor can enable an "AI candidate match score" during a routine quarterly update.
Check two scope triggers on every HR workflow:
- Geographic nexus: HB 3773 covers staff working inside Illinois, applicants for roles located in Illinois, and remote candidates living and working in Illinois recruited by an IHRA-covered employer. Treat national
"Remote (US)"postings open to Chicago or Peoria applicants as covered. - Broad AI definition (
775 ILCS 5/2-101(M)): Covers any machine-based system inferring from inputs how to generate predictions, content, recommendations, or decisions, explicitly including generative AI. Fixed spreadsheet formulas and plain boolean keyword searches sit outside the rule; LLM resume summarizers, knock-out scorers, and promotion or shift rankers sit inside it.
Covered decisions span recruitment, hiring, promotion, renewal, training selection, discharge, discipline, tenure, and terms or conditions of employment (ILGA PA 103-0804). For candidate protections, see your rights when an application is screened by AI.
What does 775 ILCS 5/2-102(L) ban, from disparate impact to ZIP-code proxies?
Effective January 1, 2026, 775 ILCS 5/2-102(L) creates three standalone civil-rights violations: disparate-impact discrimination, using ZIP codes as a proxy for protected classes, and omitting worker or applicant AI notice. Good intentions defeat none of the three.
- Disparate-impact discrimination (
2-102(L)(1)): Bars AI that has the effect of discriminating across any IHRA protected class (race, color, religion, national origin, age 40+, sex, disability, pregnancy, marital or military status, sexual orientation, work authorization, or reproductive decisions) (National Law Review). Unlike Texas TRAIGA (which requires intent), Illinois penalizes neutral models that disproportionately screen out protected groups without business necessity. Audit vendors using our 12 contract questions after Mobley v. Workday. - Explicit ZIP-code proxy ban (
2-102(L)(1)): Forbids using"zip codes as a proxy for protected classes"in AI employment decisions (ILGA PA 103-0804). Because five-digit postal codes in metro areas like Cook County track race and national origin closely, strip candidate ZIP codes from scoring prompts and disable ATS"commute distance"auto-ranking weights (verify legitimate on-site response times manually instead). - Omitted notice (
2-102(L)(2)): Even if a tool shows a 100% parity rate across demographic groups in audits, running it on Illinois candidates without notice violates the Act. Complainants have 300 days to file an IDHR charge, leading to Illinois Human Rights Commission (IHRC) or circuit-court proceedings carrying actual damages, back pay, reinstatement, civil penalties, and mandatory complainant attorney's fees (Hinshaw).
How does HB 3773 fit alongside Illinois AIVIA (820 ILCS 42) and BIPA?
Illinois employers actually navigate three separate statutes, and posting an HB 3773 notice never satisfies the consent and deletion mandates of Illinois's video-interview or biometric laws.
Since 2020, the Illinois Artificial Intelligence Video Interview Act (820 ILCS 42) has governed AI analysis of recorded applicant video interviews for Illinois-based jobs (ILGA 820 ILCS 42). Beyond notice, AIVIA requires plain-English explanation of characteristics evaluated, written consent before the interview, 30-day deletion of the video and vendor backups upon applicant request (42/15), and annual DCEO race/ethnicity demographic reporting if the employer relies solely on AI video scoring (42/20). Meanwhile, Illinois BIPA (740 ILCS 14) requires a written retention policy and prior written release before capturing voiceprints or facial geometry, carrying $1,000 or $5,000 statutory damages per aggrieved person.
| Rule feature | HB 3773 (775 ILCS 5/2-102(L)) | Illinois AIVIA (820 ILCS 42) | Illinois BIPA (740 ILCS 14) |
|---|---|---|---|
| Status. | In force Jan 1, 2026 | In force Jan 1, 2020 | In force 2008 (SB 2979 2024) |
| Employer floor. | 1+ Illinois worker (20+ weeks) | Employers filling IL-based roles | Any private entity with biometrics |
| Trigger. | Any AI/GenAI influencing hiring, pay, promos, discipline, or firing. | AI analyzing recorded video interviews. | Voiceprints, facial geometry, finger scans. |
| Notice / consent. | Mandatory prior notice (no opt-in consent). | Notice + explanation + written consent. | Written policy + prior written release. |
| Logs / deletion. | 4-year retention in draft IDHR rules. | Delete video in 30 days on request + DCEO report. | Destroy at purpose end or <=3 years. |
| Remedies. | IDHR (300 days) -> IHRC/court; damages + fees. | Statutory compliance duty. | Private suit; $1,000 / $5,000 per person. |
Reconcile row five cleanly: delete raw recorded videos and vendor backups within 30 days on AIVIA request, while keeping text notices, consent timestamps, and non-video selection logs for four years.
Which fields did IDHR's Subpart J rules list, and why use them after the June 2026 pause?
On May 15, 2026, IDHR proposed 56 Ill. Adm. Code 2500, Subpart J in the Illinois Register detailing notice fields and four-year logs; on June 2, 2026, IDHR withdrew and postponed Subpart J for further interagency review (Hinshaw; IDHR). As of October 29, 2026, 775 ILCS 5/2-102(L) remains fully enforceable across covered Illinois employers, so covering all seven draft Subpart J elements is the safest good-faith harbor.
Draft Subpart J field | Plain-English disclosure | Frequent small-firm error |
|---|---|---|
| 1. Product & vendor. | Exact tool name, model, developer, and vendor. | Writing vague "modern technology" boilerplate. |
| 2. Decisions & roles. | Specific HR stages influenced and covered job titles. | Disclosing recruiting AI while hiding review summarizers. |
| 3. System purpose. | Job task evaluated (e.g., "checks CPA license dates"). | Pasting vendor hype ("finds top-tier talent"). |
| 4. Data inputs. | Resume/test categories processed; zero ZIP proxies. | Leaving ATS commute-ZIP weights switched on. |
| 5. Human review role. | Advisory summary vs automated knock-out screen. | Claiming human review when knock-outs hide 60% of applicants in the portal. |
| 6. Accommodations. | Monitored email/phone for ADA/IHRA alternatives. | Sending requests to an unmonitored no-reply@ address. |
| 7. Timing & 4-yr logs. | Pre-use on job ads, 30-day staff notice, 4-year logs. | Letting ATS logs auto-purge after 90 days. |
Worked math (labelled assumptions): A nine-person Evanston agency screens 80 applicants/year across two roles using an ATS AI scorer plus ChatGPT Team. Setting up the ed.cafe Illinois HB 3773 Applicant & Employee AI Notice Fill-In Template, disabling ZIP weights, and creating a 4-year log folder takes 2.5 hours ($137.50 at $55/hour internal ops time). Defending one omitted-notice IDHR charge easily consumes 25 to 40 hours of outside counsel at $425/hour ($10,625 to $17,000+) before penalties or fee-shifting.
Fill-in notice and posting checklist: the ed.cafe Illinois HB 3773 Template
The ed.cafe Illinois HB 3773 Applicant & Employee AI Notice Fill-In Template puts every 775 ILCS 5/2-102(L) and draft Subpart J field, an optional AIVIA consent block, and a four-year log checklist on one page. Pair it with our one-page small-business AI use policy and manager guide on ChatGPT in layoffs and reviews. Customize the ed.cafe Illinois HB 3773 Applicant & Employee AI Notice Fill-In Template below.
THE ED.CAFE ILLINOIS HB 3773 APPLICANT & EMPLOYEE AI NOTICE TEMPLATE
Statute: 775 ILCS 5/2-102(L) (PA 103-0804, in force Jan 1, 2026)
Publisher: ed.cafe by No Worker Left Behind (501(c)(3), EIN 88-3268312)
DISCLAIMER: General operational information, NOT legal advice. IDHR Subpart J rules
were proposed May 15, 2026 and postponed June 2, 2026; verify final IDHR rules and
your exact tools with Illinois-licensed employment counsel.
SECTION 1: NOTICE OF ARTIFICIAL INTELLIGENCE USE IN EMPLOYMENT DECISIONS
Employer Name: [Legal Organization Name] | Effective Date: [YYYY-MM-DD] (v1.0)
Applies To: [All IL job applicants / IL-based & remote IL staff / Roles: _______]
Under the Illinois Human Rights Act (775 ILCS 5/2-102(L)), [Employer Name] notifies
applicants and employees that we use the AI or generative AI tool(s) below in covered
employment decisions. (Duplicate Tool block for each additional system.)
- AI Product / Module Name: [e.g., Greenhouse AI Resume Summary v3.1]
- Developer & Vendor: [Developer Name / Vendor Name]
- Decisions Influenced: [ ] Recruiting [ ] Resume screening/ranking [ ] Interviews
[ ] Skills testing [ ] Promotions [ ] Performance reviews [ ] Scheduling/Discipline
- Purpose of Tool: [e.g., "Summarizes submitted resume credentials against
posted minimum job qualifications for human review."]
- Data & Inputs Processed: [e.g., "Resume text, licenses, application answers."]
ZIP-Code Rule: [Employer Name] NEVER uses residential ZIP codes as a proxy for race,
national origin, or any protected class under the Illinois Human Rights Act.
- Role of Human Review: [e.g., "Advisory only; a human recruiter reviews all
applicants" OR "Automated minimum-license knock-out screen."]
QUESTIONS & REASONABLE ACCOMMODATIONS (ADA / IHRA):
Request questions or a reasonable accommodation (including a non-AI evaluation path due
to disability, pregnancy, or religious practice) before or during evaluation:
- Human Contact: [Name, Title] | [[email protected]] | [(XXX) XXX-XXXX]
- Response SLA: Within [2 business days], with zero negative impact on your status.
SECTION 2: ADDENDUM FOR RECORDED AI VIDEO INTERVIEWS ONLY (820 ILCS 42)
[Include ONLY if AI analyzes recorded applicant videos for IL-based positions:]
1. Characteristics Evaluated: [Plain-English summary; check BIPA 740 ILCS 14 rules.]
2. Written Pre-Interview Consent: AI video analysis runs ONLY if you sign a separate
written consent before recording; declining routes you to standard human review.
3. 30-Day Deletion: Email [Address] to delete your video and vendor backups in <=30 days.
SECTION 3: POSTING & 4-YEAR RETENTION CHECKLIST (INTERNAL HR)
[ ] 1. Job Ads & Portal: Shown on every IL-eligible posting BEFORE applicant submission.
[ ] 2. Current IL Staff (1+ worker floor): Posted in handbook, intranet, and IL breakroom
at least 30 days before deployment and re-verified annually.
[ ] 3. Vendor Check: Disabled ATS ZIP-code weights; saved vendor bias-validation docs.
[ ] 4. 4-Year Archive: Retained dated notice versions, screenshots, accommodation logs,
and AI decision records for 4 YEARS (while deleting raw AIVIA videos in 30 days).Massachusetts residents building workplace AI skills can take the free Google AI Professional Certificate via the Massachusetts AI Hub (Mass AI Hub; see what not to paste into an AI tool at work). At ed.cafe, run by Boston 501(c)(3) No Worker Left Behind (EIN 88-3268312), Circle #1 is forming at ed.cafe/start/ as a free 30-chair cohort closing December 1, 2026 (pre-launch as of October 2026; zero cohorts have completed yet), alongside open templates in the Staff Room.
Where this stops being true
- Refiled IDHR
Subpart Jrules: Because IDHR postponedSubpart Jon June 2, 2026, final rules may modify advance-notice day counts or formatting safe harbors. Monitordhr.illinois.gov. - Notice never legalizes bias: Posting an HB 3773 notice satisfies
2-102(L)(2)only; biased selection outcomes or ZIP-code proxies still violate2-102(L)(1). - Video and biometric consent: One-way notices fail
820 ILCS 42(AIVIA) and740 ILCS 14(BIPA), which require prior written consent. - Multistate hiring pools: Recruiting across Illinois, NYC (
Local Law 144), and Colorado (SB 26-189, January 1, 2027) requires layering each state's strictest rule. - Not legal advice: This guide and template provide general operational information, not legal advice. Have Illinois-licensed counsel review your notices and respond to any IDHR charge.
Questions people ask
Does Illinois HB 3773 apply to small businesses with fewer than 15 employees?
Yes. HB 3773 amended the Illinois Human Rights Act (775 ILCS 5/2-102(L)), which covers any employer with one or more employees working in Illinois during 20 or more calendar weeks in the current or preceding year (775 ILCS 5/2-101(B)). Even a two-person shop or out-of-state employer with one remote Chicago worker is covered.
Is the Illinois AI employment notice still required after IDHR withdrew Subpart J in June 2026?
Yes. Although the Illinois Department of Human Rights postponed its proposed Subpart J rules on June 2, 2026 for interagency review, the statute itself (775 ILCS 5/2-102(L)) has been live since January 1, 2026. Employers must provide good-faith AI notices and prevent disparate impact today.
What must be included in an Illinois HB 3773 AI notice to applicants and staff?
IDHR's May 2026 Subpart J draft offers the clearest seven-part checklist: the AI product and vendor name, covered employment decisions and job roles, the system's purpose, categories of data processed, the role of human review, reasonable accommodation contact instructions, and four-year record retention.
Does Illinois HB 3773 require applicant consent before using AI resume screening?
HB 3773 (775 ILCS 5/2-102(L)) requires prior notice and reasonable accommodations, not opt-in consent, for text-based AI resume or HR tools. However, if AI analyzes recorded video interviews for an Illinois-based job, the Illinois Artificial Intelligence Video Interview Act (820 ILCS 42) requires written pre-interview consent and 30-day requested deletion.
Why does Illinois HB 3773 specifically ban ZIP codes in workplace AI?
Under 775 ILCS 5/2-102(L)(1), employers cannot use ZIP codes as a proxy for protected classes like race or national origin in AI-assisted employment decisions. Because Illinois residential ZIP codes correlate closely with demographics, scoring commute postal codes or neighborhood retention rates risks unlawful disparate impact.
How long should Illinois employers keep AI hiring notices and decision records?
Keep all AI notices, job-posting screenshots, accommodation logs, and decision records for four years from creation or the employment decision date to match IDHR's 2026 draft retention rule, while deleting raw recorded interview videos within 30 days whenever an applicant asks under AIVIA (820 ILCS 42/15).
Key terms
- Artificial Intelligence Video Interview Act (
820 ILCS 42): Illinois law requiring notice, explanation, written consent, and 30-day requested deletion when AI analyzes recorded applicant videos. - Disparate-impact liability (
775 ILCS 5/2-102(L)(1)): Standard holding employers liable when neutral AI tools disproportionately screen out protected groups without business necessity. - IDHR
Subpart Jdraft rules: Proposed AI-in-employment rules published May 15, 2026 and postponed June 2, 2026 detailing seven notice fields and four-year logs. - IHRA one-employee floor (
775 ILCS 5/2-101(B)): Rule applying HB 3773 AI duties to any employer with one or more Illinois workers over 20 calendar weeks. - Illinois Human Rights Commission (IHRC): State body adjudicating IDHR charges with power to award actual damages, civil penalties, and complainant attorney's fees.
- ZIP-code proxy ban: HB 3773 rule barring postal codes in employment AI where they stand in for race, national origin, or protected traits.
Sources
- Illinois General Assembly, "Public Act 103-0804 (HB 3773), 775 ILCS 5/2-102(L)" (Live Jan 1, 2026): ILGA Full Text
- Illinois General Assembly, "Artificial Intelligence Video Interview Act (
820 ILCS 42)": ILGA 820 ILCS 42 - Illinois Department of Human Rights, "IDHR Rulemaking & Charge Portal" (2026): IDHR
- Hinshaw & Culbertson, "Illinois AI in Employment Regulations for 2026" (Feb 26, 2026): Hinshaw
- National Law Review, "Four States Writing Workplace AI Rules" (2026): National Law Review
- StartBusinessByState, "AI Hiring Laws by State Tracker" (2026): State AI Tracker
