Certain provisions of Public Act 26-15, signed into law by Governor Ned Lamont in 2026, require employers to disclose the use of AI in employment-related decisions to applicants and employees. The new law exempts AI use in decisions concerning “non-material” matters, such as scheduling and productivity monitoring, but applies to “employment-related decisions” such as hiring, termination, promotion, discipline, and other decisions concerning the terms, privileges, or conditions of employment. Covered technology includes “any technology that processes personal data and uses computation to generate any output, including, but not limited to, any prediction, recommendation, classification, ranking, score or other information, that is a substantial factor used to make or materially influence an employment-related decision.” In practical terms, employers should treat the law as applying whenever AI either makes an employment-related decision or materially influences one.
There are two general categories of AI use that require disclosure. First, when an applicant or employee directly interacts with an AI platform, the employer must provide a plain-language notice that the individual is interacting with AI, unless that fact would be obvious to a reasonable person. Second, when AI is used to contribute to an employment-related decision, the employer must provide written notice stating: (i) that automated employment-related decision technology will be used; (ii) the...
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