A new law sets disclosure rules and deadlines for employers using AI in employment decisions
Connecticut employers who use AI to help make hiring, promotion, or other workforce decisions have a new set of rules to follow. On May 27, 2026, Governor Ned Lamont signed Senate Bill 5 into law as Public Act No. 26-15, after the bill passed the legislature on May 1. The law adds new transparency and disclosure requirements for employers who use automated tools in employment decisions, and it applies whether that use happens inside an enterprise HR team or through a staffing partner running candidates through an assessment tool.
Two Effective Dates
The law phases in on two separate dates, and the difference matters for planning.
| Effective date | What changes |
| October 1, 2026 | Use of automated tools is no longer a defense to a discrimination claim, though bias-testing evidence may be considered |
| October 1, 2026 | Developers of covered employment AI tools must give employers the information needed to comply with the law |
| October 1, 2026 | WARN Act layoff notices must disclose whether the layoffs were related to their use of AI |
| October 1, 2027 | Employers must tell employees and applicants, in plain language, when they are interacting with an automated tool |
| October 1, 2027 | Employers must give the applicant or employee written notice before an automated tool factors into an employment decision |
The first three changes are about building the framework for employer accountability in making employment decisions and closing off the option of using AI as a defense in employment discrimination cases. The employee and applicant-facing notice requirements do not start until a year later, giving employers more runway to prepare before those disclosures are required.
Who This Law Covers
Connecticut defines the covered technology broadly. The law applies to any system that processes personal data and produces an output, such as a score, ranking, or recommendation, that is a substantial factor in an employment decision like hiring, promotion, discipline, or termination. Everyday tools like spreadsheets and word processors are excluded, but resume screeners, candidate ranking tools, and similar systems are squarely covered.
This broad definition means the law reaches beyond large enterprise HR departments. Staffing and search and recruiting firms that run candidates through screening or ranking tools before placement can also be considered a deployer under the law, especially once a Connecticut-based applicant or employee is involved.
What Happens If an Employer Does Not Comply
Violations are treated as unfair or deceptive trade practices under Connecticut’s consumer protection law, and the Connecticut Attorney General is the only party who can enforce them. There is no private right of action for individuals. A cure period may also be available through December 31, 2027, giving employers a chance to fix a violation before facing a lawsuit.
What’s Next
The law also creates a pilot program, starting July 1, 2027, for independent, state-approved organizations to assess whether AI systems meet certain risk and safety standards. Connecticut will approve up to five of these organizations, and the program is set to sunset in 2030. It does not create a compliance safe harbor on its own, but it signals where regulatory expectations may be headed as more states weigh in on AI in the workplace.
Connecticut joins Colorado, Illinois, New York City, and California in regulating how employers use AI in employment decisions, adding one more piece to a growing, and not always consistent, patchwork of state and local requirements.
How People2.0 Can Help
Keeping track of legislative changes like this one is part of how we support our partners every day. As Connecticut’s requirements take shape between now and 2027, our team is monitoring the law’s rollout and any implementing guidance the state issues.
If you have questions about how this law might affect your business, reach out to your People2.0 representative. We are here to help you stay ahead of changes like this one.
Editorial oversight by Jeremiah Akin, Senior Manager, Global Brand and Content
