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Wednesday, July 22, 2026

New Connecticut Law Restricts Employer AI Use, Mandates Notice for AI-Caused RIFs - JD Supra

On May 29, 2026, Connecticut Governor Ned Lamont signed into law landmark bipartisan artificial intelligence (AI) legislation that will, among other things, restrict employers’ use of AI-powered tools in employment decisions and require employers to provide disclosures to employees before AI-related reductions in force (RIFs).

Quick Hits

  • Connecticut has enacted a comprehensive AI law that regulates the use and deployment of AI in consumer, employment, and government contexts.
  • The new AI law will require employers to disclose the use of “automated employment-related decision technology” to employees and applicants when the technology output is making, or is a “substantial factor” in making, an employment-related decision concerning employees or applicants.
  • Failure to comply with the notice requirements will be considered an unfair or deceptive trade practice, enforceable exclusively by the state attorney general.
  • The law further prohibits employers from relying on AI tools as a defense against discrimination claims and will impose whistleblower protections for employees reporting AI-related safety concerns.

The signing of Substitute Senate Bill (SB) No. 5, Public Act No. 26-15, comes after the state legislature passed the amended legislation following a long back-and-forth during which Governor Lamont threatened to veto an earlier version of the bill in 2025. SB 5 provides a comprehensive regulatory framework for the deployment and use of AI technology across consumer,...



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