IL SB3777

Amends the Illinois Human Rights Act to establish "disparate impact" liability, making it a civil rights violation to use practices, policies, or methods that have the effect of discriminating against protected classes, even without discriminatory intent.

Expands the definition of "unlawful discrimination" to include discrimination "by purpose or effect," adding disparate impact claims to the existing intentional discrimination framework.

Applies the new disparate impact standard to employment, financial credit (loans and credit cards), and public accommodations, prohibiting criteria or methods that disproportionately affect protected groups.

Establishes a two-part test for unlawful disparate impact: practices are illegal if they are not necessary to achieve a substantial, legitimate, nondiscriminatory interest, OR if that interest could be served by an alternative practice with less discriminatory effect.

Requires the Act to be construed liberally to accomplish its remedial purposes, with exceptions and exemptions interpreted narrowly to maximize deterrence of discriminatory conduct.