House Bill (HB) 3773, now Public Act 103-0804, will take effect on January 1, 2026.
It amends the Illinois Human Rights Act and introduces several new responsibilities for HR personnel in public-sector organizations. These updates focus on non-discrimination, harassment prevention, accommodations, and the use of technology in employment decisions.
In this article, we will provide an overview of the law and talk about how you can implement some of the changes.
But please keep in mind, we are not lawyers, and none of this is legal advice. Please seek legal counsel about this law.
A public employer includes the State of Illinois, any of its agencies or departments, units of local government, school districts, instrumentalities, and political subdivisions. The Act also clarifies that the State and any political subdivision count as an employer—regardless of how many employees they have.
Use of Artificial Intelligence (AI)
HR must ensure that AI used in recruiting, hiring, promotion, or other employment decisions does not discriminate against protected classes or use proxies such as zip codes.
Employees must be notified when AI is used in these processes.
Harassment of Nonemployees
HR must take reasonable corrective action if the organization becomes aware that a non-managerial or non-supervisory employee has harassed or sexually harassed a nonemployee.
A nonemployee includes contractors, consultants, or others performing services under a contract.
Harassment protections now also apply to unpaid interns.
Language Restrictions
Employers may not prohibit employees from speaking their native language when the communication is unrelated to their job duties.
Immigration-Related Practices
Employers may not request more or different documents than those required for employment verification.
Employers cannot refuse to accept documents or work authorizations that reasonably appear genuine or discriminate based on immigration status or work-authorization term.
Religious Accommodation Requirements
HR must make a genuine effort to reasonably accommodate an employee’s sincerely held religious beliefs, practices, or observances—including attire, clothing, and facial hair—unless doing so would cause undue hardship.
Public employees who take time off for religious reasons must be allowed to make up the time during non-regular working hours when operationally feasible.
Employers may require advance notice for religious absences, but no more than five days.
Posting and Handbook Requirements
HR must post a Department-prepared or approved notice summarizing employee rights—covering unlawful discrimination, sexual harassment, and accommodation rights—in a conspicuous workplace location.
The same notice must be included in every employee handbook.
Failure to correct a notice violation within 30 days of a Department “notice to show cause” may result in a civil rights violation.
By taking proactive steps now, Illinois local governments can minimize legal risks and make sure your use of AI is compliant.
Identify all AI systems that you currently use, including third-party vendor tools for resume-screening, video interviewing, and worker management. Identify the ones you anticipate using in employment decisions on or after the effective date, as well.
Evaluate for Impact. While Illinois HB 3773 does not specifically mandate bias or impact assessments, you might consider conducting privileged audits or proactive measures, which is recommended. Doing so can help you formally document an assessment of whether your AI tools might disproportionately impact certain protected groups.
Reinforce Existing AI Compliance. If your organization uses AI to analyze job applicants' video interviews, remember that the 2020 Artificial Intelligence Video Interview Act already requires you to:
Notify the applicant that AI will be used to analyze their video.
Explain how the AI tool works.
Obtain the applicant’s consent.
For those relying solely upon AI analysis to screen candidates, you must also collect and report demographic data to double-check that no bias against protected classes was in effect.
Draft Policies and Training. Begin developing risk management policies to identify and mitigate AI-associated risks. Prepare to revise employee handbooks and training materials to reflect the new requirements. Make sure your workforce understands the compliant use of AI in decision-making.
Our VIP Payroll, VIP Employee Portal, and VIP Talent Management solutions support these requirements by strengthening accuracy, documentation, and communication across your workforce. With integrated payroll processing, centralized employee records, and secure self-service tools, your organization can maintain consistent compliance practices while reducing administrative workload. These solutions also streamline onboarding, policy distribution, performance tracking, and other core HR functions—helping you operate with greater clarity, accountability, and confidence. View more about those solutions here.
Sources:
Illinois General Assembly, Public Act 103-0804 (HB 3773).