Connecticut Passes AI Law Requiring Employers to Disclose Automated Hiring Tools
Connecticut's legislature passed broad artificial intelligence legislation May 11, 2026 that regulates how employers use AI in recruiting, hiring, promotions, discipline, scheduling, and termination decisions. The bill, known as SB 5, awaits Governor Ned Lamont's signature, expected shortly. Connecticut will join a growing list of states imposing transparency and accountability requirements on employers deploying AI in personnel decisions.
What the Law Covers
The statute regulates what it calls automated employment-related decision technology-any system that processes personal data and generates outputs that substantially influence employment decisions. The definition is broad enough to cover resume-screening software, applicant ranking systems, video-interview analytics, skills assessments, productivity tools, and workforce management platforms when those tools materially affect personnel decisions.
Key Requirements for Employers
Notice and disclosure. Beginning October 1, 2027, employers deploying AEDT intended to interact with applicants or employees must disclose in plain language that the individual is interacting with such technology-unless it would be obvious to a reasonable person.
When the tool's output will be used as a substantial factor in making an employment decision, employers must provide written notice before the decision is made. The notice must identify the tool's purpose, the categories and sources of personal data being analyzed, how data will be assessed, and employer contact information.
Adverse decision disclosures. If an employment decision is "adverse," employers must provide a statement disclosing the principal reasons for the decision, including the degree to which and manner in which the AI output contributed to the decision, the type of data used, and the employee's right to examine or correct that data.
The law protects proprietary or trade secret information, but employers cannot assume vendor confidentiality excuses them from compliance. If an employer withholds information based on a third party's confidentiality claim, the employer must disclose that information is being withheld and identify the legal basis for withholding it.
No algorithmic defense. Connecticut's anti-discrimination framework expressly provides that use of AI or automated systems is not a defense to a discrimination claim. Employers remain responsible even if the challenged output came from a third-party platform.
If an AEDT disproportionately screens out candidates or influences decisions in a way that has an unlawful discriminatory effect, the employer may still be liable. This reinforces a principle regulators have increasingly emphasized: employers remain accountable for employment decisions, whether those decisions are made by people, software, or a combination of both.
What HR Teams Should Do Now
AI governance can no longer be treated as an IT issue. Human resources, legal, compliance, and procurement teams should collaborate to identify all tools used in recruiting or personnel management and assess whether those tools materially affect employment decisions.
Even companies already using AI responsibly may need to formalize review procedures. Employers should assess whether internal policies, vendor agreements, and recordkeeping practices are sufficient to support compliance.
- Conduct bias testing on existing systems
- Review vendor contracts to ensure you can obtain information needed for required disclosures
- Create documentation explaining how automated outputs are considered by human decision-makers
- Identify all tools used in recruiting or personnel management that materially affect employment decisions
Connecticut's law reflects a broader regulatory trend: employers may continue using AI, but they must do so transparently, carefully, and with meaningful human accountability.
For HR professionals managing recruitment and talent decisions, understanding these requirements now will help avoid compliance gaps when the law takes effect. AI for Human Resources resources can help teams understand how to implement these practices effectively.
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