AI Compliance for HR & Recruiting Firms in Illinois

Last verified: March 20, 2026

Regulatory Status

HB-3773

Illinois Human Rights Act AI Amendment (Public Act 103-0804)

enacted

Amends the Illinois Human Rights Act (775 ILCS 5/) to prohibit employers from using artificial intelligence that subjects employees or applicants to discrimination based on protected classes, and from using zip codes as a proxy for protected classes. Requires employers to notify employees when AI is used in recruitment, hiring, promotion, discharge, discipline, or other terms and conditions of employment. Defines "artificial intelligence" and "generative artificial intelligence" for purposes of the Act.

Effective: 2026-01-01 View Bill Text →

Key Requirements

AI Discrimination Prohibition Cannot use AI that has the effect of subjecting employees to discrimination on the basis of protected classes identified under the Illinois Human Rights Act
Zip Code Proxy Ban Cannot use zip codes as a proxy for protected classes under the Illinois Human Rights Act
Employee Notice of AI Use Must provide notice to an employee that the employer is using AI for recruitment, hiring, promotion, discharge, discipline, or other employment-related decisions
PA-101-0260

Illinois Artificial Intelligence Video Interview Act (820 ILCS 42)

enacted

Enacted 2019 (PA 101-260), effective 2020-01-01. Amended by PA 102-47 (effective 2022-01-01) to add DCEO demographic reporting. Regulates Illinois employers who use AI to analyze applicant video interviews. Requires notice, explanation of AI, and written consent before analysis; limits video sharing; mandates 30-day deletion on applicant request; requires annual demographic reporting to DCEO.

Effective: 2020-01-01 View Bill Text →

Key Requirements

Notice, Explanation, and Written Consent Before any AI analysis of a video interview, notify the applicant that AI may be used, explain how the AI works and what characteristics it evaluates, and obtain written consent (Section 5)
Video Sharing Restrictions May share applicant videos only with individuals whose expertise or technology is necessary to evaluate the applicant's fitness (Section 10)
30-Day Deletion on Request Upon applicant request, employer must delete the video within 30 days and instruct all other recipients with copies or backups to delete them (Section 15)
Annual DCEO Demographic Reporting Collect racial/ethnicity data for applicants denied in-person interviews via AI analysis and for hired applicants; report annually to the Illinois Department of Commerce and Economic Opportunity by December 31 (Section 20, added by PA 102-47)

Insurance Implications

Relevant policy types: EPL, E&O, Cyber, D&O

Carrier Endorsement Status Applies To Filing Date Source
Verisk CG 40 47 adopted CGL 2026-01-10 verisk.com
W.R. Berkley PC 51380 pending D&O, E&O, Fiduciary 2026-02-01 berkley.com
Verisk CG 40 48 adopted CGL 2026-01-10 verisk.com
Verisk CG 35 08 adopted Products/Completed Operations 2026-01-10 verisk.com

Filing status based on carrier announcements and state DOI records. Verify filings through your state's SERFF Filing Access system.

Compliance Gaps to Address

No bias audit or disparate impact testing of hiring AI tools
No applicant notification that AI is used in screening or scoring
Lack of documentation linking AI outputs to adverse employment decisions
Unaware of AI exclusion endorsements in EPL or E&O policies

Other Industries in This State

Insurance BrokersMarketing AgenciesLaw Firms

This Industry in Other States

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Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. AI regulations and insurance policy terms change frequently. Consult with a qualified attorney or insurance professional for advice specific to your situation. Gridex makes no warranties regarding the accuracy or completeness of this information.