The Governor of Illinois signed HB3773, which amends the Illinois Human Rights Act to limit the use of predictive analytics in the workplace. The bill specifically addresses generative artificial intelligence used in employment decisions and extends provisions on civil rights violations to cover artificial intelligence. The amendment makes it a civil rights violation to use AI to discriminate in the workplace or to use AI without notification. The bill takes effect on 1 January 2026 and applies to employers, employment agencies, and labor organizations in Illinois.

Derek Mobley has filed an amended complaint in the ongoing class action lawsuit against Workday, alleging that the firm's algorithm-based applicant screening tools discriminate against individuals based on race, age and disability. Mobley seeks certification of the case as a class action, designating himself as the representative of parties facing alleged discriminatory screening practices, and is seeking a preliminary and permanent injunction against Workday to restrain the company from engaging in the alleged unlawful activities. He is also requesting an order mandating Workday to institute and execute policies that provide equal employment opportunities for all minorities as well as monetary compensation in terms of back pay, front pay and other financial relief.

Lawmakers in the US are proposing laws to impose requirements on the use of automated employment decision tools (AEDTs) to reduce potential risks and mitigate bias and discrimination. New York City Local Law 144 set the precedent for bias audits on AEDTs, with Pennsylvania, New Jersey and New York State following suit with similar laws. The laws require independent, annual bias audits of AEDTs and the publication of a summary of the results on the employer or employment agency's website. Notifications to candidates and employees before the use of AEDTs are also mandated by the laws, with varying approaches to obtaining consent.

New York City Local Law 144 requires annual independent bias audits of automated employment decision tools (AEDTs) for employers and employment agencies using them to evaluate candidates for employment or employees for promotion in NYC. The law also imposes transparency and notification requirements. AEDTs are defined as computation processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issue a simplified output to assist or replace discretionary decision-making. A bias audit assesses if the AEDT results in disparate impact against individuals based on race/ethnicity and/or sex/gender. Auditors must be independent and impartial, and employers/employment agencies must disclose certain data and provide notice to candidates and employees at least ten working days before using an AEDT. Penalties for non-compliance range from $500 to $1500 per violation. Holistic AI offers independent AI Bias Audits to help employers comply with the law.

The Equal Employment Opportunity Commission (EEOC) settled a lawsuit with iTutorGroup for $365,000 over AI-driven age discrimination, which is the first settlement against AI-powered recruitment tools in the US. The iTutorGroup used an algorithm in 2020 that automatically rejected older applicants due to their age, violating the Age Discrimination Act. The settlement prohibits the iTutorGroup from automatically rejecting tutors over 40 or anyone based on their sex and is expected to comply with all relevant non-discrimination laws. HR Tech tools are likely to face more lawsuits targeting automated employment decision tools across the US.