Connecticut Requires Employers to Disclose AI Use in Hiring and Firing Decisions
Connecticut's governor signed legislation that will require businesses to notify employees and job applicants about automation technology used in employment decisions. The law takes effect October 1, 2027.
Senate Bill 5 mandates employers disclose details about AI decision-making tools, including what personal data feeds into those decisions and where that data comes from. Companies can contract with technology developers to provide the required notices.
The law also requires employers to notify Connecticut's Labor Department if a mass layoff or plant closure results from AI or automation adoption. This adds to existing notice requirements under the federal Worker Adjustment and Retraining Notification Act.
Connecticut Joins Limited Group of States Regulating Employment AI
Connecticut becomes one of four states with laws governing AI in hiring and firing, alongside California, Colorado, and Illinois. Many Democratic-controlled legislatures have considered similar bills, but pressure from the tech industry and the White House has slowed regulation.
The Trump administration has threatened to restrict federal funding and pursue litigation against states attempting to regulate AI. Colorado narrowed its algorithmic bias law after the Justice Department joined a federal lawsuit challenging the state's automated decision-making rules.
Liability and Discrimination Standards Clarified
Connecticut updated its workplace discrimination ban to clarify that using an AI tool does not shield employers from bias liability. Courts can now consider bias testing results as evidence that an employer took steps to prevent discrimination.
For legal professionals, this means employers cannot rely on automation as a defense against discrimination claims. Documentation of bias testing becomes relevant evidence in discrimination litigation.
Additional Requirements Beyond Employment
The law restricts how minors use social media platforms where algorithms control content visibility. Connecticut also directs state resources toward AI and quantum computing education, worker training, and economic development.
The University of Connecticut will study AI's impact on the state workforce and make recommendations for policy adjustments.
Learn more about AI for Legal compliance requirements and AI for Human Resources obligations.
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