Direct answer
Illinois has no single AI-hiring penalty schedule. HB-3773 made covered AI conduct a civil-rights issue under the Illinois Human Rights Act; the amendment has no bespoke AI fine, but current §8A-104 permits cease-and-desist relief, actual damages, hiring or reinstatement, promotion, backpay and fringe benefits, attorney and expert fees and costs, other make-whole relief, and civil penalties tiered by prior adjudicated violations. The Artificial Intelligence Video Interview Act (820 ILCS 42) contains no standalone monetary penalty or enforcement section; its §20 is a demographic reporting duty, not an enforcement mechanism. If a hiring tool captures biometric identifiers, BIPA separately provides a private right of action for actual or statutory damages, plus fees, costs, and other relief including an injunction. Public Act 103-769, effective August 2, 2024, treats repeated collection from the same person by the same method as one violation and applies a parallel rule to repeated disclosure to the same recipient by the same method.
Applicable Regulations
Amends the Illinois Human Rights Act (775 ILCS 5/) to prohibit employers from using artificial intelligence that has the effect of subjecting employees 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.
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
Effective: 2026-01-01
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 consent before analysis; limits video sharing; mandates 30-day deletion on applicant request; and requires annual demographic reporting to DCEO for employers that rely solely on AI video analysis to decide who advances to an in-person interview.
Key Requirements
Notice, Explanation, and 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 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 Employers that rely solely on AI video analysis to decide who advances must collect race/ethnicity data for applicants who are and are not offered in-person interviews and for applicants hired, then report annually to DCEO by December 31 (Section 20, added by PA 102-47)
Effective: 2020-01-01
Industry Context
HR & Recruiting Firms
Staffing agencies, recruiting firms, and HR technology providers that use AI for candidate sourcing, resume screening, interview analysis, and employment decision support. These firms face heightened regulatory scrutiny because AI in hiring directly affects individuals' economic opportunities.
Typical Compliance Gaps
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
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.