New AI Law Creates Employer Compliance Obligations

The following article was first published in the Hartford Business Journal. It is reposted here with the permission of the authors.

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On May 29, Gov. Ned Lamont signed legislation establishing new compliance requirements for Connecticut employers that use artificial intelligence in employment decisions.

The law takes effect Oct. 1, 2026, making Connecticut one of several states to regulate the use of AI in hiring and other workplace decisions.

Employers using AI to help make employment decisions—including those relying on third-party developers of AI technology—should ensure they comply with the new law.

Here are things to consider.

Automated Employment-Related Decision Technology

The law restricts the use of automated employment-related decision technology if such tools are used by employers to make employment-related decisions.

An AEDT is technology that processes personal data to generate outputs, predictions, rankings, recommendations or scores that substantially influence employment decisions.

The law restricts the use of AEDT tools if they are used to make employment-related decisions.

The definition excludes common tools that do not materially influence such decisions, including word processing programs, spreadsheets and purely statistical data.

An employment-related decision includes decisions based on personal data to hire, promote, discipline, discharge or affect the terms and conditions of employment.

It does not include decisions concerning workplace health and safety, scheduling, or productivity.

Disclosure Obligations

Beginning Oct. 1, 2027, employers must tell employees and job applicants, in plain language, when they are interacting with an AEDT, unless that interaction would be obvious to a reasonable person.

Additionally, employers using an AEDT to generate an output for, or as a substantial factor in, an employment-related decision must provide written notice disclosing:

• That the employer is using an AEDT;
• The AEDT’s purpose and the nature of the employment-related decision;
• The AEDT’s trade name;
• The categories and sources of personal data analyzed, and how it will be processed; and
• The employer’s contact information.

Future regulations may clarify when these disclosure requirements apply during communications with employees and job applicants.

The law does not require disclosure of trade secrets or information otherwise protected from disclosure. If information is withheld on that basis, the employer must notify the affected person and explain why.

AEDT developers that have required disclosure information must provide it to employers so they can meet these obligations. Employers also may contract with developers to assume certain disclosure responsibilities, provided the agreement specifies which obligations the developer will handle.

Enforcement

Effective Oct. 1, 2026, the law makes clear that employers cannot defend against a discrimination complaint simply because an AEDT was used in making the subject employment decision.

However, the Connecticut Commission on Human Rights and Opportunities, or a court, may consider evidence of anti-bias testing or other proactive efforts to avoid discriminatory outcomes and the employer’s response to those efforts.

Violations of the law constitute unfair or deceptive trade practices under the Connecticut Uniform Trade Practices Act and may be enforced only by the state attorney general.

Employers cannot defend against a discrimination complaint simply because an AEDT was used.

For violations occurring on or before Dec. 31, 2027, the attorney general may issue a notice of violation if the issue can be corrected, giving employers 60 days to address it before initiating a formal enforcement action.

Under the law, individuals cannot sue employers directly for alleged violations.

Employers using AEDTs should review how those tools are used in employment decisions to ensure they comply with the new law.

They also should regularly evaluate those processes for potential bias and other compliance issues and address problems when identified.

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About the authors: Abby Warren is a partner at Robinson+Cole and a member of the firm’s Labor, Employment, Benefits + Immigration group. Christopher Costain is an associate with the firm.