On December 11, 2025, President Trump signed an Executive Order titled Ensuring a National Policy Framework for Artificial Intelligence (the “EO”). This EO targets state laws addressing artificial intelligence and creates potential compliance issues employers must carefully navigate.
Key Aspects of the EO
The EO’s stated purpose is to encourage AI innovation, reduce barriers to AI development, lessen inconsistencies in state regulation, and target laws deemed to “embed ideological bias within models.” The EO will create an AI Litigation Task Force to challenge state laws considered inconsistent with the EO’s purpose. It is presently unclear which states or specific laws the Task Force may challenge. Accordingly, there is some uncertainty regarding what existing legislation may be implicated—and therefore targeted—by the EO’s Task Force.
Current AI State Laws
At this point, many—if not most—employers use AI in some aspects of the hiring, recruitment, and onboarding process. In response to concerns that employer AI usage could result in discriminatory employment decisions, a number of states—such as California—enacted laws aimed at reducing the potential risk of biased AI-involved employment decisions. For example, California passed the California Consumer Privacy Act, effective January 1, 2026 (the “CCPA”). Among other things, the CCPA requires businesses that use AI (without human involvement) in employment decisions—for example, hiring, promotion, allocation of employees...
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