HB 4987
SURVEILLANCE-BASED WAGES
TL;DR
Illinois HB 4987 would restrict employers from using surveillance data and AI-driven algorithms to set or adjust individual worker wages. The bill targets 'algorithmic wage discrimination,' where companies use real-time data collected from workers (location, productivity metrics, behavior) to personalize pay rates. It's currently stalled in the Rules Committee.
How This Might Impact Your Business
Gig economy platforms (rideshare, delivery, on-demand services) face the biggest exposure since variable, algorithm-set pay is core to their business model
Warehouse, logistics, and retail operators using productivity tracking software to adjust bonuses or hourly rates would need to revisit compensation structures
Employers would likely be barred from using worker surveillance data (GPS, keystroke logging, wearables, productivity scores) as inputs for individualized wage decisions
Applies to Illinois-based workers, meaning multi-state employers need geofenced compliance even if their HQ is elsewhere
Expect disclosure requirements: workers may gain the right to see what data feeds their pay calculations
Penalties typically include private right of action in Illinois labor bills, meaning class action exposure, not just state fines
Bill is stuck in Rules Committee with no sponsor momentum visible, so near-term passage is unlikely but the concept is gaining traction nationally
What Should You Do
Inventory any AI or algorithmic systems that influence pay, bonuses, incentives, or shift assignments for Illinois workers
Ask HR and legal to map which data sources (productivity software, GPS, customer ratings) currently feed compensation decisions
If you operate a gig or variable-pay model in Illinois, have legal draft contingency plans for a flat-rate or transparent-formula alternative
Monitor the Illinois Rules Committee and watch for similar bills in NY, CA, and WA, where copycat legislation is likely
Brief your communications team: 'surveillance wages' is becoming a labor-organizing talking point regardless of legal status
Who It Affects
Status Timeline
committee
Rule 19(a) / Re-referred to Rules Committee
March 27, 2026