Employers navigating the adoption of new technologies powered by AI face a fast-moving regulatory environment at the intersection of data privacy risk and employment law. Ben Johnson, Kathryn Nadro, and Deja Davis of LP’s Employment & Executive Compensation Group recently delivered a webinar addressing key topics around AI in the workplace. This talk covered:
New State and Local Laws Governing the Use of AI in Employment Decisions
Five jurisdictions now have AI employment laws on the books, with effective dates ranging from October 2025 through January 2027. Laws in Illinois, Colorado, California, Connecticut, and New York City require companies that use AI in a way that influences employment decisions around recruitment, hiring, performance, advancement, and separation to disclose that use. Examples of activities that may trigger this requirement are resume parsing, candidate scoring, chatbots, video interview analysis, and others, and some jurisdictions require bias audits.
The Federal Framework for Addressing Bias
Alongside state and local regulations, federal EEOC guidance is also still active. Federal discrimination laws apply fully to AI tools; there is no exemption for automated systems, and the fact that a vendor created a tool is not a legal defense. That means employers must carefully consider potential sources of bias, including biased training data, proxy characteristics, inaccessible tools, and non-job-related screening. Risk is present in activities...
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