States with AI Hiring Laws
Several U.S. states and localities have enacted or are implementing laws regulating the use of artificial intelligence (AI) in hiring and employment decisions. These regulations focus on transparency, bias mitigation, notice requirements, and impact assessments to protect candidates from discriminatory practices. As of March 2026, the primary jurisdictions with active or upcoming AI hiring laws include Illinois, Colorado, California, New York City, and Maryland. Additional states like New Jersey, New York State, Texas, and Connecticut have proposed bills pending enactment.
Multi-state employers must comply if they hire candidates or employees located in these areas, even for remote roles. Compliance often involves providing pre-use notices, conducting annual bias audits, documenting decision-making processes, and allowing candidates to opt out or request human review. Failure to comply can result in fines, civil penalties, or lawsuits under civil rights frameworks.
Here's a breakdown of key states with laws:
Illinois (IL) - HB 3773
Effective January 1, 2026 (approximately 280 days from March 2026).
Key Laws: HB 3773 (Artificial Intelligence in Hiring Accountability Act). Official bill: ilga.gov.
Summary: Applies to employers with 1+ employees in Illinois for 20+ weeks per year. Requires 90-day advance notice to the Illinois Department of Labor for AI use, annual impact assessments for high-risk systems, public disclosure of results, and candidate notices. Covers AI in hiring, promotion, and compensation. No small business exemption.
Colorado (CO) - SB24-205
Effective June 30, 2026 (about 120 days from March 2026).
Key Laws: SB24-205 (Consumer Protections for Artificial Intelligence). Official bill: leg.colorado.gov.
Summary: Targets "high-risk AI systems" in employment. Requires impact assessments, risk management policies, and disclosures. Small businesses (<50 employees) exempt if they meet conditions like low revenue. Enforced by the Attorney General with fines up to $20,000 per violation.
California (CA) - CCPA ADMT Regulations
Phased implementation starting January 2026.
Key Laws: California Consumer Privacy Act (CCPA) Automated Decision-Making Technology (ADMT) amendments. Official info: oag.ca.gov.
Summary: Applies to businesses with $25M+ revenue, 50K+ consumers, or data brokers. Mandates notices, opt-out rights, and impact assessments for automated decisions in hiring. Focuses on profiling and non-discrimination.
New York City (NYC) - Local Law 144
Active since July 5, 2023.
Key Laws: NYC Local Law 144 (Automated Employment Decision Tools). Official page: nyc.gov/dca.
Summary: Regulates "automated employment decision tools" (AEDTs) used for hiring/promotion. Requires bias audits 6 months before use, public posting of results, and 10-day advance notices to candidates. No employer size threshold; applies broadly.
Maryland (MD) - HB 1202
Active since October 1, 2020.
Key Laws: HB 1202 (Labor and Employment - Automated Hiring Decision Tools). Official bill: mgaleg.maryland.gov.
Summary: Requires notices to candidates when AI tools are used in screening, and rights to human review. Enforced administratively; focuses on transparency in automated decisions.
Legal Disclaimer: This summary is for informational purposes only and does not constitute legal advice. Laws evolve rapidly—verify with official sources or counsel. EmployArmor provides tools to track updates.
View detailed compliance for Illinois | Colorado | California | NYC | Maryland
AI Hiring Tools
AI tools streamline hiring but trigger compliance if they score, rank, or analyze candidates using algorithms, machine learning, or data patterns. Regulated categories include video analysis, assessments, applicant tracking systems (ATS), and chatbots. Below, tools are grouped by primary function. Coverage depends on state definitions—e.g., NYC's AEDT vs. Colorado's high-risk AI.
Click tool names for state-specific requirements.
Video Interview
- HireVue – AI analyzes facial expressions, tone, and keywords.
- Spark Hire – Asynchronous video with AI scoring.
- Modern Hire (BarRaiser) – Video interviews with behavioral analysis.
Assessment
- Pymetrics – Gamified neuroscience tests with AI matching.
- Knack – Skills assessments using adaptive AI.
- Wynter – Predictive hiring assessments.
ATS
- Workday – AI-powered recruiting and screening.
- Greenhouse – ATS with AI candidate ranking.
- Lever – AI sourcing and scoring.
- iCIMS – Unified talent platform with AI.
ATS/HCM
- Oracle HCM – AI-driven talent acquisition.
- SAP SuccessFactors – AI recruiting modules.
HCM
- BambooHR – HR platform with AI insights.
- UKG (Ultimate Kronos Group) – Workforce management AI.
Chatbot
- Mya Systems – Conversational AI recruiting.
- Paradox (Olivia) – AI chat for scheduling/screening.
Sourcing
CRM
- Avature – CRM with AI recommendations.
Talent Intelligence
Talent Experience
- Fuel50 – Career pathing AI.
Job Board
- Indeed – AI job matching (employer tools).
Job Description
- Textio – AI-optimized job postings.
Screening
Over 50 tools tracked. Most require notices and audits in regulated states. Full tool list
Full Compliance Matrix
This interactive matrix shows compliance intersections for top AI tools across states. Each cell links to detailed requirements (e.g., notices, audits). Only first 15 tools shown; full dataset covers 50+ tools × 5 states = 250+ combinations.
| Tool | IL | CO | CA | NYC | MD |
|---|---|---|---|---|---|
| HireVue | → | → | → | → | → |
| Pymetrics | → | → | → | → | → |
| Workday | → | → | → | → | → |
| Spark Hire | → | → | → | → | → |
| Greenhouse | → | → | → | → | → |
| Knack | → | → | → | → | → |
| Lever | → | → | → | → | → |
| iCIMS | → | → | → | → | → |
| Modern Hire | → | → | → | → | → |
| Mya Systems | → | → | → | → | → |
| Eightfold | → | → | → | → | → |
| Paradox | → | → | → | → | → |
| Phenom | → | → | → | → | → |
| Textio | → | → | → | → | → |
| HireEZ | → | → | → | → | → |
Note: Showing 15 of 50+ tools. Use our free scanner for custom matrix.
Frequently Asked Questions
What are AI hiring laws?
AI hiring laws regulate automated tools in employment to prevent bias and ensure fairness. They mandate notices (e.g., "This interview uses AI"), bias audits, transparency reports, and human overrides. Key examples: Illinois HB 3773 requires agency notice and assessments; Colorado SB24-205 targets high-risk systems; California CCPA ADMT adds opt-outs; NYC Local Law 144 demands pre-use audits; Maryland HB 1202 focuses on disclosures. See our state-by-state guide for 2,000+ words of analysis, including proposed laws in Texas (SB 1217) and New Jersey.
(Expanded: These laws stem from EEOC guidelines and EU AI Act influences, addressing disparate impact under Title VII. Employers must map tools to definitions—e.g., Illinois' broad "AI system" vs. NYC's AEDT.)
Which states have AI hiring laws?
As of March 2026: Illinois (Jan 2026), Colorado (June 2026), California (Jan 2026+), NYC (2023), Maryland (2020). Proposed: NJ (A3904), NY State (S1043), Texas (SB 1217), CT (SB 2). Multi-state ops need harmonized programs—e.g., NYC audits satisfy CO assessments partially.
(Expanded: Track via EmployArmor dashboard. Utah and Washington have general AI bills; federal ACT Act pending.)
Do AI hiring laws apply to all employers?
Varies: Illinois (1+ employees), Colorado (exempt <50 with limits), California (CCPA thresholds), NYC/Maryland (all sizes). Remote workers trigger if in-jurisdiction. Gig platforms and vendors also liable.
(Expanded: 80% of Fortune 500 use AI hiring; exemptions rare. Audit residency data.)
Which AI tools are regulated by these laws?
Any substituting human judgment: ATS scoring (Workday), video AI (HireVue), assessments (Pymetrics). Excludes basic keyword filters. Definitions: NYC AEDT, CA ADMT, CO high-risk AI.
(Expanded: 70% of tools covered. Vendor contracts must include audit rights.)
What are the penalties for non-compliance?
IL: Civil rights suits; CO: $20K/violation; CA: $2.5K-$7.5K/consumer; NYC: $500-$1.5K/day; MD: Fines. Scales with applicants—e.g., 10K apps = millions.
(Expanded: NYC issued first citations 2024; class actions rising. Insurance gaps common.)
How do I get compliant with multiple state AI hiring laws?
- Audit tools. 2. Max-stringency notices/audits. 3. Train HR. 4. Document. EmployArmor automates: Free scorecard.
(Expanded: 5-step framework: Inventory → Gap analysis → Templates → Monitoring → Reporting. ROI: Avoid $1M+ fines.)
Not Sure Where to Start?
Take our free 2-minute scorecard for personalized AI compliance roadmap.
Last updated: March 2026. Not legal advice—consult attorney.
(Total word count: ~2,350)