Does Illinois HB 3773 Apply to Your Company? A Plain-English Guide

If you employ people in Illinois and use any form of AI in hiring or other employment decisions, HB 3773 almost certainly applies to you. The law took effect January 1, 2026 and amended the Illinois Human Rights Act (IHRA) — which means enforcement reaches every Illinois employer, regardless of headcount.

This post is the short version. Our full plain-English pillar guide covers scope, AI tool definitions, the four most common compliance gaps, and what to do about each. Below is the conversational version: a 30-second scope test and the three things almost everyone gets wrong.

A 30-second scope test

If you can answer "yes" to any one of these, HB 3773 is your problem to manage:

• You employ people in Illinois (full-time, part-time, or remote-from-Illinois)
• Your applicant-tracking system ranks, scores, or matches candidates
• You use a video-interview tool that evaluates applicants
• Anyone on your team uses ChatGPT, Copilot, or Gemini to screen résumés or summarize candidate notes
• You use AI in performance reviews, promotion decisions, or shift scheduling

The last category catches more companies than the rest combined. Predictive scheduling tools and AI-assisted performance review summaries are almost ubiquitous and almost universally uninventoried.

Three things almost everyone gets wrong

1. Size doesn't get you out

Unlike some employment statutes that carve out small employers, HB 3773 amended the IHRA itself. If you have one Illinois employee and use AI in employment decisions, you're in scope. There is no de minimis threshold to hide behind.

2. "We don't use AI" is almost always wrong

Your ATS probably added matching features in the last 24 months. Your video-interview tool may score candidates by default. LinkedIn Recruiter's relevance ranking is AI. A structured inventory routinely surfaces AI use that leadership didn't know existed — usually within the first half-day. See What Counts as an "AI Tool" Under HB 3773 for the full taxonomy.

3. Vendors don't shield you

Your ATS vendor has its own obligations, but the employer still owns the duty to provide notice, to use the tool lawfully, and to document diligence. "Our vendor handles compliance" isn't a defense. The deeper take is in Is Your ATS Vendor HB 3773 Compliant?

What about remote workers?

If a remote employee works in Illinois, that employment relationship is generally subject to Illinois law. Multi-state workforces are exactly where scope gets missed — and exactly where plaintiff-side attorneys will start digging.

The fast next step

Whether you're a 120-person manufacturer or an 800-person regional firm, the same question opens the engagement: where does AI actually touch your employment decisions? That's the AI Inventory, and it's the foundation everything else builds on. See How to Build an AI Inventory for Employment Decisions for the methodology, or book a Risk Review and we'll walk through your exposure together.

Lakeshore is a compliance consultancy, not a law firm. This article is general information and not legal advice.