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HB 3582

Relating to statutes of limitation; and declaring an emergency.

2025 Regular Session Introduced by Tom Andersen and 44 co-sponsors

Prohibits covered entities from using criteria or methods that cause unlawful discrimination unless justified by strong business necessity with no less-discriminatory alternatives.

Chapter 447, (2025 Laws): Effective date June 26, 2025.
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Bill Summary · HB 3582

Summary — HB 3582 (Human Rights — Criteria or Methods)

Status: Introduced in the Illinois House by Rep. Will Guzzardi; filed Feb. 7, 2025. First reading Feb. 18, 2025. Referred to committees; multiple floor amendments considered. Co-sponsors added through Nov. 20, 2025 (most recently Rep. Justin Slaughter).

Purpose

HB 3582 amends the Illinois Human Rights Act (IHRA) to prohibit the use of criteria or methods by employers, financial institutions, credit-card issuers, public accommodations, and other covered entities when those criteria have the effect of producing unlawful discrimination — unless justified by a defined business necessity and no less-discriminatory alternative exists.

Key provisions

  • Adds a new Section 2-103.5 to the IHRA that bars any covered person or organization from using criteria or methods that have the effect of subjecting individuals to unlawful discrimination or discrimination based on citizenship status, work authorization status, arrest record, or conviction record (House Amendment 002 is the most recent text shown).
  • Establishes a business-necessity standard: such criteria/methods are unlawful unless they are justified by business necessity, defined in the amendments as “substantial, legitimate, and non-discriminatory,” and the business necessity could not be served by another practice with a less discriminatory effect.
  • Inserts parallel prohibitions into existing IHRA provisions governing:
    • Loans (775 ILCS 5/4-102) — prohibits financial institutions from using criteria or methods that have discriminatory effects unless justified by the business-necessity standard.
    • Credit cards (775 ILCS 5/4-103) — similarly prohibits discriminatory criteria/methods in credit-card decisions.
    • Public accommodations (775 ILCS 5/5-102) — bars use of criteria or methods that have discriminatory effects in access to goods, services, facilities, and written communications.
  • Creates these uses as civil rights violations under the IHRA (existing enforcement mechanisms of the IHRA would apply).

Who is affected

  • Employers and employment agencies (decision-making criteria, hiring/screening tools)
  • Financial institutions and credit-card issuers (lending, underwriting, credit scoring)
  • Operators of public accommodations (policies, eligibility rules)
  • Any person or organization covered by the IHRA that uses criteria or methods in decisions impacting access, services, loans, credit, employment, or accommodations

Procedural/timeline notes

  • Filed Feb. 7, 2025; committee activity includes Immigration & Human Rights Committee (do pass as amended Mar. 19, 2025) and subsequent Rules Committee referrals. House Floor Amendments 001 and 002 were filed (Mar. 11 and Apr. 7, 2025). Read again and re-referred under House rules; co-sponsors added through Nov. 20, 2025.
  • As of the last recorded action, the bill remains in the House legislative process and has not been enacted.

Potential implications

  • Would constrain use of criteria or automated decision tools (e.g., credit-based screening, background-check policies, algorithmic models) that produce disparate impact unless employers/organizations can prove business necessity and lack of less discriminatory alternatives.
  • Could increase compliance and documentation burdens on covered entities and create new bases for administrative complaints or litigation under the IHRA.

Primary statutory references: proposed 775 ILCS 5/2-103.5 (new), and amendments to 775 ILCS 5/4-102, 5/4-103, and 5/5-102.

Compiled from official sources — confirm details with the bill’s official record.

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