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Thursday, January 22, 2026

State laws regulating AI take effect in the new year. Here’s what HR needs to know. - HR Dive

Artificial intelligence use at work is increasingly a fact of life, especially for knowledge workers. For better or for worse, that includes HR: AI is increasingly being adopted in recruiting, compensation and even performance management.

But that also means it’s increasingly a point of contention, sometimes resulting in legal action. Take the ongoing collective action lawsuit filed against Workday, for example.

Federal and state policymakers are scrambling to keep up, and the result is a tension between the two — with employers caught in the middle.

Feds, states race to set the tone

Recent White House policy has been aimed at making the U.S. a global AI leader. Efforts include executive orders President Donald Trump signed in July, along with an AI Action Plan issued this summer.

In Congress, a bipartisan bill introduced by Sens. Josh Hawley, R-Mo., and Mark Warner, D-Va. in November seeks to mandate that employers report AI-related layoffs.

And then there’s the ever-growing patchwork of state AI employment laws.

New York City’s AI in hiring law, for example, has been in effect since 2023, with other states and municipalities following suit. This summer, California added an AI at work provision to its pre-existing Fair Employment and Housing Act, which took effect on Oct. 1. It applies to hiring as well promotions and training in the state.

Similarly, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) was signed into law this past summer and will take...



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