What are the penalties for violating Illinois AI hiring law?
Answer
Illinois does not have a single unified penalty scheme for AI hiring violations; enforcement depends on which law is violated. HB-3773 (Illinois Human Rights Act amendment, effective January 1, 2026) does not itself specify monetary penalties — violations are enforced through IHRA procedures by the Illinois Department of Human Rights (IDHR), with remedies including injunctive relief, damages, and attorney's fees. The Illinois AI Video Interview Act (PA 101-0260, 820 ILCS 42) similarly does not specify monetary penalties within the Act; enforcement is primarily through the Section 20 reporting obligation to DCEO and general Illinois employment / consumer protection frameworks. If an AI hiring tool captures biometric identifiers (e.g., facial geometry during video interviews, voice prints), the separate Illinois Biometric Information Privacy Act (BIPA, 740 ILCS 14/) applies via private right of action and carries specific statutory damages: $1,000 per negligent violation or $5,000 per intentional/reckless violation (or actual damages, whichever is greater), plus attorneys' fees and costs and possible injunctive relief. The 2024 BIPA amendment (SB 2979, effective August 2, 2024) clarifies that repeated collection of the same biometric identifier from the same person using the same method counts as a single violation per individual, limiting the per-scan damage multipliers that drove earlier class-action exposure.
Applicable Regulations
Illinois Human Rights Act AI Amendment (Public Act 103-0804)
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.
Key Requirements
Illinois Artificial Intelligence Video Interview Act (820 ILCS 42)
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.
Key Requirements
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
Full State Analysis
Where this lands operationally
Gridex turns the compliance or coverage question into operated workflow controls: intake, review points, audit trails, and the places a person stays in the decision.
Discuss a Governed Hiring Workflow
Use this research to identify the workflow, review points, and operating controls that would matter in your organization.
Discuss a Governed Hiring Workflow →Related Questions
- Can I use AI for hiring in Illinois? Yes, but two distinct Illinois laws apply. HB-3773 (effective January 1, 2026) amended the Illinois Human Rights Act to prohibit employers from using AI that discriminates against protected classes or uses zip codes as a proxy, and it requires notice to employees that AI is being used in employment decisions (recruitment, hiring, promotion, discipline, tenure, or terms and conditions). Separately, the Illinois Artificial Intelligence Video Interview Act (PA 101-0260, 820 ILCS 42), in effect since 2020, applies specifically when AI analyzes applicant video interviews: employers must notify the applicant, explain how the AI works, obtain written consent, limit video sharing to necessary evaluators, delete videos within 30 days of an applicant's request, and — per the 2022 amendment (PA 102-47) — report applicant racial/ethnicity data annually to DCEO. If AI hiring tools also capture biometric identifiers (e.g., facial geometry from video), the separate Illinois Biometric Information Privacy Act (BIPA) creates additional consent and liability obligations. Illinois employers using AI for any form of employment decision should map their process against all three regimes.
- What are the AI video interview consent requirements in Illinois? Illinois' AI video interview consent requirements come from the Illinois Artificial Intelligence Video Interview Act (PA 101-0260, codified at 820 ILCS 42), not HB-3773. Under Section 5 of the Act, before using AI to analyze an applicant's video interview, the employer must: (1) notify the applicant in advance that AI may be used to analyze the video interview and consider the applicant's fitness for the position; (2) explain how the AI works and what general types of characteristics it uses to evaluate applicants; and (3) obtain written consent from the applicant. Under Section 10, employers may share applicant videos only with individuals whose expertise or technology is necessary to evaluate the applicant's fitness — not with third parties generally. Under Section 15, if the applicant requests deletion, the employer must delete all copies within 30 days and instruct any other recipients (with copies or backups) to delete theirs as well. The Act has been in effect since January 1, 2020, with demographic reporting added by a 2022 amendment (PA 102-47). Note: broader employment-AI discrimination rules — including a separate employee-notice requirement and a ban on zip-code proxies — are addressed in HB-3773 (IHRA amendment, effective January 1, 2026), which is distinct from this Video Interview Act.
- What are Illinois' annual reporting requirements for AI in hiring? A common misconception: Illinois HB-3773 (the 2026 Illinois Human Rights Act amendment) does NOT contain any annual reporting requirement. HB-3773 prohibits discriminatory AI in employment and requires notice to employees that AI is being used — but no annual report. Annual reporting for AI in Illinois hiring comes from a separate, older law: the Illinois Artificial Intelligence Video Interview Act (PA 101-0260, codified at 820 ILCS 42), Section 20, which was added by PA 102-47 (effective January 1, 2022). Under Section 20, Illinois employers who use AI to analyze applicant video interviews must: (1) collect racial/ethnicity data for applicants denied an in-person follow-up interview because of their AI-analyzed video interview; (2) collect racial/ethnicity data for applicants who are hired; and (3) report both data sets annually to the Illinois Department of Commerce and Economic Opportunity (DCEO) by December 31. DCEO then analyzes the data for racial bias and reports findings to the Governor and General Assembly by July 1. This is the only annual reporting obligation for AI in Illinois hiring under current law — the Illinois Department of Labor (IDOL) is not the enforcement agency, and no broader AI hiring registry exists.