Illinois HB 3773 and Texas TRAIGA: AI in hiring rules already in force since 1 January 2026
Short answer: two state laws took effect on 1 January 2026. Illinois (HB 3773, amending the Human Rights Act) makes it a civil-rights violation to use AI with a discriminatory effect in employment decisions, to use ZIP codes as a proxy, or to fail to notify employees that AI is used. Texas (HB 149, TRAIGA) bars developing or deploying AI with intent to unlawfully discriminate; disparate impact alone is not enough, and enforcement is by the Attorney General.
Checklist
- Illinois: list each AI use in recruiting, hiring, promotion, discipline or discharge; send employee/applicant notice (watch for IDHR rules on timing and format).
- Illinois: check features for ZIP-code or other proxy inputs; keep an adverse-impact review on file.
- Texas: document the intended purpose of each AI system and that it was not designed to discriminate; keep that record.
- Both: federal Title VII, ADA and ADEA still apply to outcomes.
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