In a recent article published by the Washington Legal Foundation, Nelson Mullins attorneys Jennie Cunningham and Amanda Witt examine the rapidly evolving regulatory landscape surrounding the use of artificial intelligence in employment decisions. As employers increasingly incorporate AI into hiring, promotion, and other workforce management processes, state and local lawmakers are introducing requirements designed to promote transparency, accountability, and the prevention of discriminatory outcomes. Recent developments in Illinois, New York City, and Connecticut highlight a growing trend toward increased oversight of AI-powered employment tools.

Cunningham and Witt discuss Illinois' amendments to the Human Rights Act, which require employers to notify employees when AI is used in certain employment decisions and prohibit the use of AI systems that have a discriminatory effect. They also address a New York State audit identifying enforcement shortcomings under New York City's Local Law 144, signaling the potential for heightened compliance efforts in the future. In addition, Connecticut has enacted legislation that will impose new disclosure requirements for automated employment decision tools beginning in 2027.

As AI regulation continues to expand, employers should view AI-enabled HR technologies as part of a broader compliance strategy. Organizations using these tools should assess their governance frameworks, monitor potential bias risks, and prepare for an increasingly complex patchwork of state and local regulatory requirements.

To read the full article, click here.