HB 3773

Abstract

Amends the Illinois Human Rights Act. Provides that an employer that uses predictive data analytics in its employment decisions may not consider the applicant's race or zip code when used as a proxy for race to reject an applicant in the context of recruiting, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure or terms, privileges, or conditions of employment. Provides that nothing in the Act shall be construed to prevent the use of predictive data analytics to support the inclusion of diverse candidates in making employment decisions. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a person or entity that relies either partially or fully on predictive data analytics to determine a consumer's creditworthiness may not allow the use of information about the consumer that assigns specific risk factors to the consumer's race or zip code resulting in rejection of credit or other adverse credit-related action to a consumer. Provides that a person or entity that uses predictive data analytics to determine the creditworthiness of more than 50 consumers in a calendar year who are State residents shall devise procedures to ensure that it does not consider information that assigns specific risk factors to a consumer's race or zip code when rejecting or taking other adverse action on a consumer's application for credit. Provides that a person or entity that violates the provisions commits an unlawful practice within the meaning of the Act. House Committee Amendment No. 1 Makes changes in the definition of "predictive data analytics". Provides that an employer that uses predictive data analytics in its employment decisions may not consider the applicant's biographical information, such as race or zip code, (rather than may not consider the applicant's race or zip code) to reject an applicant in specified contexts. House Floor Amendment No. 3 Provides that the definition of "predictive data analytics" means the use of automated machine learning algorithms for the purpose of statistically predicting outcomes (rather than statistically analyzing a person's behavior). Provides that nothing in the Act shall be construed to prevent the use of predictive data analytics to support an inclusive and diverse workforce (rather than support the inclusion of diverse candidates in making employment decisions). Makes other changes. Senate Floor Amendment No. 3 Deletes reference to: 815 ILCS 505/2BBBB new Replaces everything after the enacting clause. Reinserts the provisions of the engrossed bill with the following changes. Further amends the Employment Article of the Illinois Human Rights Act. Provides that it is a civil rights violation: (1) with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment, for an employer to use artificial intelligence that has the effect of subjecting employees to discrimination on the basis of protected classes identified under the Article or to use zip codes as a proxy for protected classes identified under the Article; and (2) for an employer to fail to provide notice to an employee that the employer is using artificial intelligence. Defines "artificial intelligence" and "generative artificial intelligence". Removes the amendatory changes to the Consumer Fraud and Deceptive Business Practices Act. Makes other changes. Adds a January 1, 2026 effective date.