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Wednesday, December 3, 2025

DOL, CFPB Issue Guidance for Employers on AI - Manatt, Phelps & Phillips, LLP

Federal agencies are keeping a close eye on artificial intelligence (AI), with both the Department of Labor (DOL) and the Consumer Financial Protection Bureau (CFPB) recently issuing guidance for employers.

In “Artificial Intelligence and Worker Well-Being: Principles and Best Practices for Developers and Employers,” the DOL aimed to value workers as essential resources even in a moment of technological change.

To guide employers, the agency provided a set of eight principles.

The “North Star” of the principles focuses on centering worker empowerment, which the agency said means that workers and their representatives—especially those from underserved communities—should be informed of and have genuine input in the design, development, testing, training, use and oversight of AI systems for use in the workplace.

Other principles include ethically developing AI systems that should be designed, developed and trained in a way that protects workers, the DOL said; establishing AI governance, where employers should have clear governance systems, procedures, human oversight and evaluation processes for AI systems in the workplace; and ensuring transparency in AI use by providing workers advance notice and appropriate disclosure if they intend to use worker-impacting AI, as well as information about what data will be collected and stored and for what purpose that data will be used by AI systems.

The agency also said employers should protect employee rights so that, for example, AI...



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