Hiring & Employment AI Laws Tracker: 2026 State-by-State

Several states now mandate bias audits for automated employment decision tools (AEDTs). New York City's Local Law 144 was the first, requiring annual independent bias audits before employers can use AEDTs in hiring or promotion. Colorado's AI Act requires impact assessments for high-risk AI systems used in employment. Illinois HB 3773 mandates bias testing for AI video interview analysis, and California's FEHA guidance treats AI-driven disparate impact as unlawful discrimination.

NYC Local Law 144 requires employers and employment agencies in New York City to conduct annual independent bias audits of automated employment decision tools (AEDTs) before using them to screen candidates or employees for hiring or promotion. Employers must publish audit results and provide notice to candidates at least 10 business days before using an AEDT, including information about the data collected and the tool's data retention policy. Violations can result in civil penalties of $500–$1,500 per violation.

Yes, a growing number of states require employers to disclose when AI is used in hiring decisions. Colorado requires notice before a high-risk AI system makes a consequential decision about employment. Illinois requires employers to notify applicants when AI analyzes video interviews. Maryland requires consent before using facial recognition in interviews. Several other states have pending legislation that would expand disclosure requirements further. Use the category filter above to find all disclosure-related laws.