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Saturday, October 24, 2026

Employers Using AI Face a Growing Web of Compliance Risks - SHRM

As employers incorporate AI into recruiting, performance management, and everyday workplace operations, compliance is becoming more complicated than simply determining whether a particular tool is legal to use. Companies also need to consider where their employees and applicants are located, what role the technology actually plays in employment decisions, how vendors handle data, and whether workers are equipped to catch mistakes made by automated systems.

Those questions are particularly pressing for employers with remote workforces. A company based in a state with relatively few AI-specific employment rules may nevertheless recruit candidates in states with more extensive requirements, potentially subjecting its hiring practices to rules it has never encountered before.

“So many employers have remote employees now,” said Dee Anna Hays, an attorney with Ogletree Deakins in Tampa, Fla. “So they’re recruiting in states where they don’t have a physical footprint,” expanding compliance requirements.

That makes the geographic scope of a job posting a compliance decision as well as a recruiting one. Before opening a remote position nationwide, employers should consider whether they actually need a national applicant pool and understand the obligations they may take on by soliciting applicants in particular jurisdictions.

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