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Tuesday, September 1, 2026

New AI Law Creates Employer Compliance Obligations - CBIA

The following article was first published in the Hartford Business Journal. It is reposted here with the permission of the authors.

On May 29, Gov. Ned Lamont signed legislation establishing new compliance requirements for Connecticut employers that use artificial intelligence in employment decisions.

The law takes effect Oct. 1, 2026, making Connecticut one of several states to regulate the use of AI in hiring and other workplace decisions.

Employers using AI to help make employment decisions—including those relying on third-party developers of AI technology—should ensure they comply with the new law.

Here are things to consider.

The law restricts the use of automated employment-related decision technology if such tools are used by employers to make employment-related decisions.

An AEDT is technology that processes personal data to generate outputs, predictions, rankings, recommendations or scores that substantially influence employment decisions.

The definition excludes common tools that do not materially influence such decisions, including word processing programs, spreadsheets and purely statistical data.

An employment-related decision includes decisions based on personal data to hire, promote, discipline, discharge or affect the terms and conditions of employment.

It does not include decisions concerning workplace health and safety, scheduling, or productivity.

Beginning Oct. 1, 2027, employers must tell employees and job applicants, in plain language, when they are...



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