On May 1, the Connecticut legislature approved Senate Bill 5 (SB 5), an Act Concerning Online Safety, which Governor Ned Lamont has indicated he intends to sign.
The Act regulates artificial intelligence (AI) and online safety across several major areas, including regulating automated tools used in employment decisions. In particular, the Act imposes transparency and notice requirements on the use of automated tools in employment decisions, extends whistleblower protections to workers at large-scale AI model developers, launches a state-supervised pilot for third-party AI verification bodies, and mandates new AI-related reporting in connection with mass layoff notices. The law prioritizes disclosure over prescriptive design or audit obligations. The Act does not create a private right of action, giving the Connecticut Attorney General (AG) sole authority to enforce the law, acting through the Connecticut Unfair Trade Practices Act (CUTPA). If signed into law, implementation would begin October 1.
At its core, the Act governs what it terms “automated employment-related decision technology.” This encompasses any system processing personal data through computational methods to generate outputs (such as scores, rankings, classifications, or recommendations) that serve as a “substantial factor” in employment-related decisions or that materially influence them. Covered decisions are broadly defined, spanning hiring, promotion, discipline, termination,...
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