AI Hiring Laws by State (2026): In Force, Enacted or Dead
Six states have enacted laws that govern how employers use artificial intelligence in hiring and other employment decisions: Illinois, Colorado, Connecticut, California, Texas and Maryland. New York City has the only law that requires a bias audit. Four of those rules are in force on October 19, 2026, Colorado's starts on January 1, 2027, and Connecticut's phases in between October 1, 2026 and October 1, 2027. Every other state relies on its existing discrimination statutes, and federal law has moved away from, not towards, AI-specific rules.
Counting is harder than it sounds, which is why the pages that rank for this question disagree with each other. Some count bills as laws (155 AI-in-the-workplace bills were introduced in 2026; Virginia's passed and was vetoed). Some count Utah's general AI disclosure law as a hiring law. Several still give Colorado's old date. This page states its counting rule, cites the statute for each row, and marks the figures we could not verify against the primary text.
The table
Counting rule: a row appears if a statute or regulation that has been enacted names artificial intelligence, automated decision tools or automated decision systems and places a duty on employers using them in employment decisions. Guidance documents, pending bills and general consumer AI laws are listed separately below.
| Jurisdiction | Law | Effective | What it requires of employers | Penalty and enforcer |
|---|---|---|---|---|
| New York City | Local Law 144 of 2021, Administrative Code 20-870 and following | Enforced since July 5, 2023 | Independent bias audit within one year before using an automated employment decision tool for hiring or promotion, public summary of results, notice to candidates 10 business days before use | $500 to $1,500 per violation per day; Department of Consumer and Worker Protection |
| Illinois | Artificial Intelligence Video Interview Act, 820 ILCS 42 | January 1, 2020 | Notice, explanation and consent before AI analyses a video interview; limits on sharing; deletion within 30 days on request; demographic reporting where AI alone decides who gets an in-person interview | No penalty stated in the act; Department of Commerce receives reports |
| Illinois | Public Act 103-0804 (HB 3773), adding 775 ILCS 5/2-102(L) to the Human Rights Act | January 1, 2026 | No use of AI that has a discriminatory effect in recruitment, hiring, promotion, renewal, training selection, discharge, discipline or tenure; no zip codes as a proxy for protected class; notice to employees when AI is used for those purposes | Human Rights Act remedies through the Department of Human Rights and Human Rights Commission, including damages and fees |
| Maryland | HB 1202 (2020), Labor and Employment 3-717 | October 1, 2020 | Signed consent waiver from the applicant before using facial recognition in an interview | No penalty stated |
| California | Civil Rights Council regulations on automated decision systems under FEHA, 2 CCR 11008 and following | October 1, 2025 | Discriminatory automated decision systems unlawful for employers with five or more employees; vendors can be the employer's agent; four years of records; anti-bias testing relevant to a defense | FEHA remedies; Civil Rights Department and private suits |
| California | CCPA regulations on automated decision-making technology, 11 CCR 7200 and following | Adopted 2025; businesses using ADMT in significant decisions must comply by January 1, 2027 | Pre-use notice, opt-out or appeal, access rights and risk assessments for CCPA-covered businesses using ADMT in employment decisions | CCPA fines; California Privacy Protection Agency and Attorney General |
| Texas | HB 149, Responsible Artificial Intelligence Governance Act, Business and Commerce Code 552 | January 1, 2026 | Prohibits developing or deploying AI with intent to unlawfully discriminate; disparate impact alone is not a violation | Attorney General only, with a cure period; no private right of action |
| Colorado | SB 26-189, part 17 of article 1, title 6, repealing and re-enacting SB 24-205 | January 1, 2027, for decisions made on or after that date | Clear notice before a covered tool influences an employment decision, plain-language explanation within 30 days of an adverse outcome, data correction and meaningful human review on request, three years of records | Consumer Protection Act penalties; Attorney General only, 60-day cure period until 2030; no private right of action |
| Connecticut | Public Act 26-15, Connecticut Artificial Intelligence Responsibility and Transparency Act (SB 5) | October 1, 2026 for the no-defense provisions; October 1, 2027 for notice duties on tools deployed from that date | Use of an automated tool is no defense to a discrimination claim; notice and explanation of adverse decisions where automated employment decision technology is a substantial factor | Unfair trade practice; Attorney General only, 60-day cure through December 31, 2027 |
Verification note: we read the enacted Colorado text and the New York City rule. The Illinois, California, Texas and Connecticut rows rest on the statute citations and law firm summaries because the legislature websites refused automated access during research. Penalty figures for Illinois and Connecticut are therefore described rather than quantified. A $50,000 Illinois penalty that circulates on some pages does not appear in the Act.
In force now
New York City
Local Law 144 is the only US rule that mandates an audit. An automated employment decision tool, defined in detail on our AEDT glossary page, may not be used to substantially assist or replace a hiring or promotion decision for a New York City candidate unless an independent auditor has calculated its selection or scoring rates by sex and by race and ethnicity within the preceding year, the employer has published a summary, and candidates were told 10 business days in advance. Enforcement began July 5, 2023.
Illinois
Illinois has two laws. The 2020 video interview act is narrow: it covers AI analysis of recorded interviews for Illinois positions and requires notice, an explanation of how the AI works, consent, and deletion within 30 days of a request. HB 3773 is broad. From January 1, 2026 it is a civil rights violation for an employer to use AI "with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment" in a way that has a discriminatory effect on a protected class, to use zip codes as a proxy for protected class, or to fail to give notice of such use. The Department of Human Rights proposed notice rules in May 2026 and withdrew them in June 2026, so the statute's general notice duty applies without regulatory detail. Illinois' Biometric Information Privacy Act is a separate exposure for any tool that analyses voice or face.
California
The Civil Rights Council's regulations took effect October 1, 2025 and are the most consequential rules in force today, because they reach every employer with five or more employees that uses an automated decision system in any employment decision. They make it unlawful to use a system that discriminates, treat a vendor that designs or operates the system as the employer's agent, extend record retention to four years, and say that anti-bias testing, or its absence, is relevant to whether the employer has a defense. The CCPA's separate automated decision-making rules add notice, opt-out and risk assessment duties for CCPA-covered businesses from January 1, 2027. Our California AI workplace laws guide has the detail.
Texas
The Responsible Artificial Intelligence Governance Act, in force since January 1, 2026, is often listed as an AI hiring law and does little in hiring. It prohibits developing or deploying AI "with the intent to unlawfully discriminate", and states that disparate impact alone is not sufficient to show intent. Enforcement is by the Attorney General after a cure period. It adds no notice, audit or record duty.
Maryland
Since October 1, 2020, Maryland employers may not use facial recognition during an interview without the applicant's signed waiver. The waiver must state the applicant's name, the interview date, consent to the use of facial recognition, and that the applicant read the waiver. It is the narrowest law on this page.
Enacted, not yet in force
Colorado
The 2024 Colorado AI Act was repealed and re-enacted on May 14, 2026 as SB 26-189 after a federal lawsuit by x.AI, joined by the Department of Justice, paused enforcement. The new law drops impact assessments and the small-employer exemption and requires notice, a 30-day explanation after an adverse outcome, data correction, meaningful human review and three years of records, for decisions made on or after January 1, 2027. Our Colorado AI Act for employers guide quotes the enacted sections.
Connecticut
Connecticut's Public Act 26-15 was signed in spring 2026 (sources give dates between May 14 and June 2). From October 1, 2026, an employer cannot defend a discrimination claim by pointing to the use of an automated tool. From October 1, 2027, employers that deploy automated employment decision technology as a substantial factor in hiring, promotion, discipline or discharge must give notice and an explanation of adverse decisions. There is no bias audit mandate, though evidence of anti-bias testing is relevant. Enforcement is by the Attorney General as an unfair trade practice, with a 60-day cure period for violations through December 31, 2027.
Bills that passed and died, and the states with nothing
- Virginia. HB 2094, a Colorado-style high-risk AI bill, passed both chambers and was vetoed by Governor Youngkin on March 24, 2025. A 2026 successor had not been enacted at the time of writing.
- New York State. No statewide AI hiring law has been enacted. New York City's law covers only City candidates.
- New Jersey. The Attorney General and Division on Civil Rights have issued guidance that the Law Against Discrimination applies to algorithmic discrimination. Guidance is not a statute and adds no new duty.
- Utah. The Artificial Intelligence Policy Act requires disclosure that a person is interacting with generative AI when asked, and proactive disclosure in regulated occupations. It is a consumer law, not a hiring law, and sunsets July 1, 2027.
- Everywhere else. Title VII, the ADA, the ADEA and the state's own fair employment law apply to AI-assisted decisions. No notice, audit or record duty attaches.
What federal law says in 2026
There is no federal AI hiring statute. The Equal Employment Opportunity Commission's two technical assistance documents, on the ADA (May 2022) and on Title VII adverse impact (May 2023), were removed from its website in January 2025. Executive Order 14281 of April 23, 2025 directed federal agencies to deprioritise disparate impact enforcement. Neither action changes the statutes: Title VII's disparate impact provision, section 703(k), is still law and private plaintiffs can still bring claims under it, as the collective action in Mobley v. Workday in the Northern District of California shows. The Uniform Guidelines on Employee Selection Procedures, 29 CFR 1607.4(D), still describe a selection rate for any group below four-fifths of the highest group's rate as evidence of adverse impact. The four-fifths rule is a regulatory rule of thumb, not a safe harbor, and New York City's audit requirement uses the same ratio. A December 2025 executive order on pre-empting state AI laws does not itself override any state statute; Congress rejected a ten-year moratorium on state AI laws in 2025.
How enforcement has gone
Only New York City has an enforcement record to examine, and it is thin. The New York State Comptroller's audit of the Department of Consumer and Worker Protection, released December 2, 2025, found that the agency's enforcement was complaint-driven and its complaint routing "ineffective". Secondary reports of the audit say the agency reviewed 32 posted bias audits and found one issue where the Comptroller's staff found at least 17; we could not open the audit PDF to confirm those counts. A 2024 study by 155 student investigators, posted to arXiv, checked 391 employers and found 18 published audit reports, about 5%, and 13 transparency notices. SHRM's 2026 State of AI in HR research reported that 57% of HR professionals in states with AI workforce laws were unaware of them, a figure we have from SHRM's summaries rather than the gated report.
What a multistate employer does
- Apply New York City's audit everywhere. If one covered tool is used on a New York City candidate, the audit must exist. Running it for the whole applicant pool costs little more and satisfies California's "relevant to a defense" standard.
- Write one notice that meets Illinois, Colorado and Connecticut. Illinois requires notice of AI use in listed decisions now; Colorado requires a clear notice at the point of interaction from January 1, 2027; Connecticut requires notice from October 1, 2027. A single application-page notice naming the tool and its role covers all three.
- Build the adverse-outcome letter. Colorado's 30-day letter and Connecticut's explanation of adverse decisions have the same content: what the decision was, what the tool did, how to request data and human review.
- Keep records for four years. California's four years exceeds Colorado's three.
- Designate a human reviewer with override authority. Colorado defines meaningful human review; it is good practice under every other regime and the best evidence in a Title VII case.
- Write it into policy. Section 8 of our AI use policy template bars AI in employment decisions without legal sign-off and a named reviewer, and our AI resume screening guide covers the vendor questions.
Key takeaways
- Six states (Illinois, Colorado, Connecticut, California, Texas, Maryland) plus New York City have enacted laws placing duties on employers that use AI in employment decisions. Counts on other pages differ because they include bills, vetoed laws or general AI laws.
- New York City's Local Law 144 is the only rule requiring a bias audit: within one year before use, with a public summary and 10 business days' notice, enforced since July 5, 2023.
- Illinois HB 3773 (January 1, 2026) bars AI with a discriminatory effect across hiring, promotion, discipline and discharge, bans zip-code proxies and requires notice. The Department of Human Rights withdrew its proposed rules in June 2026.
- California's Civil Rights Council regulations (October 1, 2025) make vendors the employer's agent and require four years of records; CCPA automated decision rules follow on January 1, 2027.
- Colorado's re-enacted law (SB 26-189) applies to decisions from January 1, 2027 with notice, 30-day explanations and human review. Connecticut's Public Act 26-15 phases in on October 1, 2026 and October 1, 2027.
- Texas prohibits only intentional discrimination by AI; disparate impact alone is not a violation.
- Federal AI guidance from the EEOC was removed in January 2025. Title VII, the ADA, the ADEA and the four-fifths rule in 29 CFR 1607.4(D) are unchanged.
- A 2024 study of 391 New York City employers found about 5% had published the audit the law requires.
Frequently asked questions
Which states have AI hiring laws?
Illinois, Colorado, Connecticut, California, Texas and Maryland have enacted statutes or regulations placing duties on employers that use AI in employment decisions, and New York City has a local law requiring bias audits. Illinois and California each have two rules. Every other state applies its general discrimination law.
Is NYC Local Law 144 still in effect?
Yes. The Department of Consumer and Worker Protection has enforced it since July 5, 2023. Employers must have an independent bias audit within one year before using an automated employment decision tool, publish a summary and give candidates 10 business days' notice. Penalties are $500 to $1,500 per violation per day.
When does Colorado's AI law take effect?
January 1, 2027. SB 26-189, signed May 14, 2026, repealed and re-enacted the 2024 Act and applies to consequential decisions made on or after that date. The old dates of February 1, 2026 and June 30, 2026 are superseded.
Is it legal to use AI to screen resumes?
Yes in every state, subject to conditions. The tool cannot produce unlawful discrimination under Title VII, the ADA, the ADEA or state law. New York City requires a bias audit and notice. Illinois requires notice and bans discriminatory effect. California requires four years of records and makes the vendor the employer's agent. Colorado will require notice and human review from January 1, 2027.
Do I need a bias audit?
Only New York City mandates one, for tools used on City candidates for hiring or promotion. California's regulations treat anti-bias testing as relevant to whether an employer has a defense, and the four-fifths rule in federal regulations makes testing the practical way to detect adverse impact anywhere.
Does Illinois require notice when AI is used in hiring?
Yes. Since January 1, 2026, HB 3773 makes it a civil rights violation to use AI in recruitment, hiring, promotion, discipline, discharge and related decisions without notice to employees. The Department of Human Rights' proposed rules on the form of notice were withdrawn in June 2026, so the statute governs.
Is the EEOC's AI guidance still valid?
No. The EEOC removed its May 2022 ADA guidance and May 2023 Title VII guidance from its website in January 2025. The statutes those documents explained are unchanged, and private plaintiffs can still bring disparate impact claims.
Can applicants sue over AI hiring tools?
Under existing discrimination law, yes, as the Mobley v. Workday collective action under the Age Discrimination in Employment Act shows. Colorado, Texas and Connecticut's AI laws create no new private right of action. Illinois routes claims through its Human Rights Act process, and California's FEHA allows private suits.