IL Strengthens Civil Rights Protections with New Disparate Impact Provisions

Illinois Governor JB Pritzker signed into law Senate Bill No. 3777, titled the Civil Rights Safeguard Act, which amends the Illinois Human Rights Act.  The new provisions codify disparate impact liability. 

Specifically, the Civil Rights Safeguard Act makes it a civil rights violation for employers, employment agencies, labor organizations, financial institutions, credit card issuers, and providers of public accommodations to use criteria or methods (e.g., practices, policies, or groups of practices) that have the effect of subjecting individuals to discrimination on the basis of protected characteristics, and citizenship status, family responsibilities, work authorization status, arrest record, or conviction record in employment contexts.

For example, with respect to financial institutions, the amendments provide that such criteria or methods are unlawful “if they are not necessary to achieve a substantial, legitimate, nondiscriminatory interest or if the substantial, legitimate, nondiscriminatory interest could be served by another practice that has a less discriminatory effect.”

Lastly, for financial institutions, the amendments provide that the Department of Human Rights may consult with the Illinois Secretary of Financial and Professional Regulation or a financial institution’s primary regulator for the purpose of investigating a charge of a civil rights violation involving a financial institution.

The Civil Rights Safeguard Act goes into effect January 1, 2027.