Artificial Intelligence

State / Jurisdiction

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• Canada
• California
• Colorado
• Illinois
• New Jersey

Federal/All

OFCCP Guidance on Use of AI in Employment 

The Office of Federal Contract Compliance Programs (OFCCP) published a new web page on April 30, 2024, that is dedicated to guidance on the use of artificial intelligence. The new launch page also includes a joint statement on the use of artificial intelligence (AI) by various government agencies regarding enforcement of civil rights, fair competition, consumer protection, and equal opportunity laws in automated systems. 

Canada

Employment Law Changes for Ontario, Canada 

The province of Ontario recently published a Guide to changes made to their Employment Standards Act (ESA). There are many areas of employment law that have changed, so employers should review this guide carefully to determine the impact. One upcoming change is a new long-term illness leave of absence for qualifying events as of June 19, 2025.  
 
There are several notable requirements that will be effective as of January 1, 2026. With regard to job postings, Ontario will require expected salary ranges to be included for open positions, and specific requirements of Canadian work experience will be prohibited. As of 2026, employers will also have to provide notice about the hiring decision to all applicants who were interviewed, and Ontario employers will also be mandated to disclose the use of artificial intelligence. In addition to the Guide itself, Ontario employers can also refer to this article by Mintz for more insights. 

California

California Automated Decision Rules in Effect 

California’s Civil Rights Department finalized regulations to limit the discriminatory impacts of artificial intelligence (AI) and automated decision systems (ADS). The rules specifically apply to employment decisions, such as hiring, promotions, selection for training programs, or similar activities.  
 
Examples of how companies may use ADS in employment: 

• Resume screening for specific terms or patterns; 
• Job advertisements or recruiting materials; 
• Assessments of skills of applicants and employees 
• Analysis using audio or video to evaluate, categorize, or recommend applicants/employees   

The new rules prohibit employers from using ADS or selection criteria that discriminate based on protected categories defined under the Fair Employment and Housing Act (FEHA). It is in the best interest of employers to evaluate their ADS carefully since courts and agencies may consider the quality, scope, recency, results, and their response to bias testing. Employers who have documented this evidence will be in a better position to defend themselves in discrimination cases. 
 

These regulations also impose data collection and retention requirements: 

• All ADS-related records must be preserved for four years. This includes dataset descriptors, scoring outputs, and audit findings. 
• Recordkeeping is necessary for demonstrating compliance and for responses to regulatory or legal challenges. 

Employers should consider the following compliance checklist according to this Jackson Lewis article: 

1. Audit AI tools used in employee screening, hiring, promotions, selection, and evaluation; 
2. While not required, consider pre- and post-deployment bias testing routines; 
3. Update recordkeeping policies to securely store ADS-related data for four years; 
4. Ensure human oversight over AI-facilitated decisions; and 
5. Train HR and management teams on new definitions and legal responsibilities under FEHA. 

For additional details, refer to this National Law Review article. 

California Bill Governing Generative AI Passes Senate 

California's AB2013 was amended and passed by the state Senate on August 19, 2024. The bill requires the developer of generative artificial intelligence (AI) to post documentation on its website, including data used by the developer to train the generative artificial intelligence system or service. If signed by Governor Newsom, this will go into effect January 1, 2026. 

Colorado

Colorado AI Law Delayed Until June 2026 

The effective date of Colorado's expansive Artificial Intelligence (AI) Act has been delayed from January until June 30, 2026, as a result of amendments recently signed under SB 25B-004 following an extra legislative session that concluded at the end of August 2025. As it stands, the law has substantial impact on employers with integrated AI tools in their hiring and employment-related processes. More information about how employers can begin addressing the state's extensive compliance requirements can be found on the state's website as well as in this article by Fisher Phillips. 

Colorado’s Biometric Amendment Effective July 2025 

An amendment to Colorado's privacy law will soon require employers to obtain consent before collecting and using biometric information, as well as requiring them to adopt biometric policies. This amendment, HB 24-1130, requires Colorado businesses to publish a written policy relating to biometrics that includes a data retention and deletion schedule, as well as a process for handling data incidents that impact biometrics, and deletion requirements. Colorado businesses must also provide a biometric identifier notice prior to the collection of biometric information, which can either be a separate document or part of the company’s privacy policy. Consent must also be obtained from Colorado employees or job candidates before collecting or using biometric information. See this article by Davis Wright Tremaine LLP for more details. 

Colorado AI Law Still Slated for February 2026 

Just over a year ago, on May 17, 2024, Colorado Governor Jared Polis signed Senate Bill 24-205, Consumer Protections for Interactions with Artificial Intelligence Systems (CPIAIS), into law with an effective date of February 1, 2026. As the state's 2025 legislative session came to a close in May of 2025, a letter from the Governor and other state officials urged the legislature to postpone the effective date of this law mandating stringent compliance requirements related to the use of artificial intelligence. This attempt was unsuccessful, and as of now, the law will be effective as scheduled in February 2026. 

Colorado Passes Broad Artificial Intelligence Law

Recently signed by Governor Jared Polis, Colorado's SB205 will become the first state artificial intelligence (AI) law that imposes requirements on the developer as well as the deployer of the AI system responsible as a substantial factor in making "consequential decisions" in employment opportunities among many other areas of business, housing, healthcare, and education. Some notable requirements include disclosures to consumers, published statements on websites, impact assessments, and risk disclosures to the Attorney General. For more information, refer to this article published by The National Law Review.

Colorado's AI Bill Passes State Legislature 

If signed by Governor Jared Polis, Colorado's SB205 would become the first artificial intelligence (AI) law to impose requirements on the developer as well as the deployer of the AI system responsible as a substantial factor in making "consequential decisions" in employment opportunities among many other areas of business, housing, healthcare, and education. Some notable requirements include disclosures to consumers, published statements on websites, impact assessments, and risk disclosures to the Attorney General. For more information, refer to this article published by The National Law Review.

Illinois

Illinois Law Restricts AI in Employment Decisions 

Governor Pritzker signed HB 3733 into law on August 9, 2024, which will regulate the use of artificial intelligence in the employment process. The law will be effective January 1, 2026, and it requires employers to notify applicants and employees whenever an AI tool is used for employment-related purposes. It also stipulates that employers are responsible for any discrimination resulting from the use of AI and clarifies that the use of zip codes as a proxy for protected classes as part of the AI tool or process is a civil rights violation. Refer to this Littler article for more details. 

New Jersey

New Jersey Issues New Rules for AI Fairness 

The state of New Jersey recently issued guidance on how its longstanding Law Against Discrimination (LAD) is also applicable to the use of artificial intelligence (AI) in the realm of employment. The guidance postulates that while the technology powering automated decision-making tools may be new, the LAD applies to algorithmic discrimination in the same way it has long applied to other discriminatory conduct. The document provides not only an overview of the guiding principles related to using automated decision tools but also specific examples in how the design of these algorithmic tools can lead to discrimination. For more insight, review this National Law Review article: New Jersey Issues Guidance on AI Discrimination in Employment.

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