Labor – Employment
Regulating AI in Employment
Regulations of AI in an employment context generally fall into three categories: (1) disclosure and notification requirements; (2) bias audit mandates; and (3) anti-discrimination provisions targeting algorithmic discrimination. New York City’s Local Law 144 requires employers using automated employment decision tools for hiring or promotion to conduct annual independent bias audits. Illinois House Bill 3773, effective January 1, 2026, requires employers to notify employees when AI is used in recruitment, hiring, promotion, discharge, or other employment-related decisions, and prohibits using AI that results in discrimination based on protected classes or uses zip codes as proxies for protected characteristics. California’s Civil Rights Council finalized regulations effective October 1, 2025, applying the Fair Employment and Housing Act to automated decision-making systems and requiring employers to preserve AI-related records for four years.
Colorado’s Artificial Intelligence Act (CAIA), effective June 30, 2026, represents a more comprehensive approach, defining “high-risk artificial intelligence systems” as any AI that makes or substantially factors into “consequential decisions” concerning employment. CAIA requires developers and deployers of high-risk systems to protect against algorithmic discrimination, conduct impact assessments, implement risk management programs, provide transparency about adverse decisions, and allow appeals with human review when feasible.
| State | Statute | Link | Effective Date |
| Colorado | Colorado AI Act | Senate Bill 24-205 | 2/1/26 |
| Illinois | Amendment to the Illinois Human Rights Act | HB 3773 | 1/1/26 |
| Illinois | Artificial Intelligence Video Interview Act | 820 ILCS 42 | 1/1/20 |
| New York | Automated Employment Decision-Making in State Government | A433 | 7/1/25 |
| New York | The LOADinG Act: Legislative Oversight Of Automated Decision-Making in Government Act | S 7543B | 12/21/24 |
| New York | New York State Fashion Workers Act | S 9832 | 6/19/25 |
| New York City | NYC | (Local Law 144) | 1/1/23 |