WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(D-5) Predictive Data AnalyticsPredictive data analytics"Predictive data analytics" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.775 ILCS 5/2-101(D-5). "Predictive data analyticsPredictive data analytics"Predictive data analytics" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.775 ILCS 5/2-101(D-5)" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.
This section amends the definitions applicable to Article 2 (Employment) of the Illinois Human Rights Act to add a new defined term, predictive data analytics, meaning the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior. The definition is intentionally broad — it encompasses any ML-based behavioral analysis, not just tools marketed as "AI" or "predictive hiring" products. The remaining definitions in Section 2-101 are unchanged existing law.
(L)(1) 1 An employerEmployer"Employer" includes: (a) Any person employing one or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation; (b) Any person employing one or more employees when a complainant alleges civil rights violation due to unlawful discrimination based upon his or her physical or mental disability unrelated to ability, pregnancy, or sexual harassment; (c) The State and any political subdivision, municipal corporation or other governmental unit or agency, without regard to the number of employees; (d) Any party to a public contract without regard to the number of employees; (e) A joint apprenticeship or training committee without regard to the number of employees.775 ILCS 5/2-101(B) that uses predictive data analyticsPredictive data analytics"Predictive data analytics" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.775 ILCS 5/2-101(D-5) 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.
(L)(2) Nothing in this Act shall be construed to prevent the use of predictive data analyticsPredictive data analytics"Predictive data analytics" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.775 ILCS 5/2-101(D-5) to support the inclusion of diverse candidates in making employment decisions.
New subdivision (L) adds a targeted prohibition on the use of predictive data analytics in employment decisions. Employers that use such tools may not consider an applicant's race or zip code when the zip code is used as a proxy for race, across the full spectrum of employment actions — recruiting, hiring, promotion, discharge, discipline, and terms and conditions of employment. The prohibition is framed as a civil rights violation under Article 2 of the Illinois Human Rights Act, making it enforceable through the existing IDHR charge process.
Paragraph (2) includes an express carve-out preserving the use of predictive data analytics to support the inclusion of diverse candidates, signaling that the legislature intends to restrict only exclusionary uses of race and zip-code data, not affirmative diversity efforts.
(a) In this Section, "predictive data analyticsPredictive data analytics"Predictive data analytics" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.775 ILCS 5/2-101(D-5)" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.
(b) 2 A person or entity that relies either partially or fully on predictive data analyticsPredictive data analytics"Predictive data analytics" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.775 ILCS 5/2-101(D-5) 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.
(c) 3 A person or entity that uses predictive data analyticsPredictive data analytics"Predictive data analytics" means the use of automated machine learning algorithms for the purpose of statistically analyzing a person's behavior.775 ILCS 5/2-101(D-5) to determine the creditworthiness of more than 50 consumers in a calendar year who are Illinois residents shall, within 90 days after the effective date of this amendatory Act of the 102nd General Assembly, 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.
(d) 4 A person or entity that violates this Section commits an unlawful practice within the meaning of this Act.
This new section of the Consumer Fraud and Deceptive Business Practices Act imposes two distinct obligations on persons or entities that use predictive data analytics in credit decisions affecting Illinois consumers. First, subsection (b) prohibits using information that assigns specific risk factors to a consumer's race or zip code when that results in rejection of credit or other adverse credit-related action. Second, subsection (c) imposes a procedural compliance requirement on entities evaluating more than 50 Illinois consumers per year: they must devise internal procedures within 90 days of the effective date to ensure compliance with the race/zip-code prohibition.
Subsection (d) makes any violation an unlawful practice under the Consumer Fraud Act, bringing the full enforcement apparatus of that statute to bear — including Attorney General enforcement, civil penalties, and injunctive relief.