On January 31, 2024, House Bill 3773 amending the Illinois Human Rights Act was assigned to the Labor & Commerce Committee, after being re-referred to the Rules Committee on October 3, 2023. In particular, the bill adds provisions related to restrictions on the use of predictive data analytics for employment and credit analysis.

What are the main provisions of the bill?

The bill defines 'predictive data analytics' as the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.

Moreover, the bill provides that an employer that uses predictive data analytics in its employment decisions may not consider the applicant's race or zip code when used as a proxy for race to reject an applicant in the context of recruiting, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure or terms, privileges, or conditions of employment.

Additionally, the bill provides that:

• a person or entity that relies either partially or fully on predictive data analytics to determine a consumer's creditworthiness may not allow the use of information about the consumer that assigns specific risk factors to the consumer's race or zip code resulting in rejection of credit or other adverse credit-related action to a consumer;
• a person or entity that uses predictive data analytics to determine the creditworthiness of more than 50 consumers in a calendar year who are Illinois residents shall devise procedures to ensure that it does not consider information that assigns specific risk factors to a consumer's race or zip code when rejecting or taking other adverse action on a consumer's application for credit; and
• a violation of the above provisions is considered an unlawful practice within the meaning of the Illinois Human Rights Act.

You can read the bill here and track its progress here.

Update: April 23, 2024

Bill passed by House

On April 19, 2024, the bill was read for the third time and passed by the House of Representatives with amendments.

Notably, the amendments:

• redefine 'predictive data analytics' to mean the use of automated machine learning algorithms for the purpose of statistically predicting outcomes (rather than statistically analyzing a person's behavior); and
• provide that nothing in the bill shall be construed to prevent the use of predictive data analytics to support an inclusive and diverse workforce.

You can read the bill here and track its progress here.

Update: May 7, 2024

Bill assigned to Judiciary Committee

On April 30, 2024, the bill was assigned to the Judiciary Committee in the Illinois State Senate.

You can read the bill here and track its progress here.

Update: May 14, 2024

Bill passed second reading in Senate

On May 9, 2024, the bill passed its second reading in the Senate with amendments and was placed on the calendar for its third reading in the Senate on the same day.

You can read the bill here and track its progress here.

Update: June 11, 2024

Bill passes both Houses

On May 24, 2024, the bill passed both Houses. This follows the bill's passage in the Senate on May 15, 2024, with amendments. The amendments were concurred by the House of Representatives on May 24, 2024.

You can read the bill here and track its progress here.

Update: August 22, 2024

Bill signed by Governor

On August 9, 2024, the bill was signed by the Governor. The bill provides for its effective date as January 1, 2026.

You can read the bill here and view its history here.