A sweeping new AI law ratified by Connecticut’s governor will require businesses to notify employees and job applicants about their use of automation technology in making employment decisions.
The legislation (SB 5) calls for employers to give workers details about the artificial intelligence decision-making tools they use, including what types of personal data are factored into decisions and the data sources. The disclosure requirements apply to AI tools that businesses deploy on or after Oct. 1, 2027, and the measure allows contracting with the technology’s developers to provide the required notices.
The governor’s office announced May 29 that Gov. Ned Lamont (D) had earlier signed the legislation.
The law also mandates that employers notify the state’s Labor Department if a mass layoff or plant closure results from the adoption of AI or other automation, an add-on to existing notice requirements under the federal Worker Adjustment and Retraining Notification, or WARN, Act.
Connecticut is joining California, Colorado, and Illinois as one of the few states to enact a law or regulation governing employers’ use of AI tools in hiring and firing decisions. Although many Democratic-majority state legislatures have considered similar bills, pressure from the tech industry and the White House have discouraged regulation of the quickly developing technology.
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