The use of AI in hiring and employment decisions is a regulatory reality. The landscape is a growing patchwork of state and local rules, with some jurisdictions imposing strict transparency, testing, and oversight requirements. Even where AI-specific laws don’t exist, employers remain liable for discriminatory outcomes under existing employment and privacy protections. HR must build processes around transparency, implement rigorous testing, provide ongoing oversight, and conduct regular reviews of any AI tools used in recruitment, screening, promotion, or discipline.

Staying current with regulations in every state where you employ people is essential.

State actions:

• California: The California Civil Rights Council (CCRC) regulates automated-decision systems with a focus on transparency, monitoring, and anti-discrimination. California also restricts AI-based workplace surveillance.
• Colorado: The Colorado Artificial Intelligence Act requires risk assessments and bias mitigation for high-risk AI systems used in employment decisions.
• Illinois: The AI Video Interview Act requires notice and consent for AI use in video interviews; amendments to the Illinois Human Rights Act prohibit AI in recruitment, hiring, promotion, or discharge if it has a discriminatory effect on protected classes or ZIP codes.
• Maryland: HB 1202 prohibits employers from using facial-recognition services for applicant interviews without the applicant’s consent.
• New York City: Local Law 144 mandates bias audits, public disclosure, and candidate notice for AI hiring tools.
• New York State: Various amendments regulate surveillance and require notification if AI is used to monitor employee work.
• Texas: While not a single AI-specific law, Texas has enacted comprehensive AI governance through the Texas Responsible Artificial Intelligence Governance Act.
• Other actions: Rhode Island (H. 7767) proposes AI impact assessments; New Jersey (A4909) aims for bias audits in hiring; Washington (HB 1170) and Utah (HB 276) address AI data provenance.

Key trends for 2026

• Bias audits and accountability: Rigorous testing and ongoing validation of AI tools.
• Notice and consent: Clear disclosure to candidates and employees when AI is used.
• Right to appeal: Many regimes require a human review or appeal option.
• Transparency: Public facing and internal disclosures about AI use in decision-making.
• Anti-discrimination: Strong safeguards against bias affecting protected classes.
• Human oversight: Preference for human review in major outcomes (e.g., terminations, disciplinary actions).

Even with state and local rules, existing federal employment laws apply everywhere: Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the Age Discrimination in Employment Act constrain AI-driven decisions just as they do human decisions.

Practical next steps for HR:

• Map all AI tools used in recruiting, screening, promotion, and discipline.
• Plan and document bias testing, validation, and ongoing monitoring.
• Establish clear notices to applicants and employees when AI is involved.
• Build a human-in-the-loop process for significant outcomes and an appeals pathway.
• Maintain records to demonstrate compliance and readiness for audits or inquiries.

ASE Connect

AI Micro-Certification – ASE offers a Micro-Certification in AI offering an overview of how to utilize Artificial Intelligence in the business world including in HR and recruitment. This certification consists of 1.5 core credits (3 half-day core courses) and .5 elective credits (1 half-day elective course). Request more information here.

AI Toolkit – Visit the ASE AI Resources page for a complete toolkit that include an AI survey report, on-demand webinar, AI Implementation Guide, and more.

AI in HR Circle of Peers Hub – New! This new hub is designed for HR professionals who are exploring, piloting, or scaling the use of artificial intelligence (AI) within their organizations. As AI rapidly transforms talent acquisition, employee development, analytics, and core HR processes, leaders are navigating both new opportunities and emerging challenges. In this group, we’ll discuss real-world applications of AI in HR, examine ethical and compliance considerations, share lessons learned, and explore practical strategies for integrating AI into everyday HR workflows. Circle of Peers Hubs are member-exclusive.  Join the AI in HR Hub here.

Webinar: AI-Ready HR: Strategically Preparing Your Organization for the Future – Join us on April 15th as McLean & Company presents its latest blueprints, AI Preparation HR Gap Analysis Tool and Navigating AI Implementation and Change Management. These resources will guide you in preparing your HR team to proactively support and lead AI initiatives within your organization. Register here.

Sources: calcivilrights.ca.gov; leg.colorado.gov; ilga.gov; mgaleg.maryland.gov; capitol.texas.gov