New Law Requires Employers To Disclose Use of AI Tools in Hiring
A new state law will require Connecticut employers who use artificial intelligence (AI) systems in employment decisions to tell job-seekers and employees and employers have until October 1, 2027 to get ready
The law, which Gov. Ned Lamont signed earlier this year, concerns employers’ use of AI tools in making employment-related decisions and concern systems that process personal data to make recommendations, classifications, rankings, or other information.
Starting October 1, 2027, employers who intend for prospective or current employees to interact with AI systems must disclose that fact to them in plain language. They don’t have to do this where “a reasonable person” would find it obvious that they are interacting with an AI system.
Before making employment-related decisions, employers must tell affected employees and prospects in writing:
- That they use an AI system
- What the system’s purpose is
- What the nature of the employment-related decision is
- The system’s trade name
- The categories of personal data it will analyze
- How it will assess the data
- Sources of the data
- The employer’s contact information.
System developers and employers do not have to reveal trade secrets or other protected information but they must tell the affected person that they are withholding it and why.
The law requires developers to give employers the information they need to make these disclosures, and employers may delegate their notice obligations to developers by contract.
The state attorney general may charge violators of the law with committing unfair or deceptive trade practices. The law prevents affected prospective and current employees from suing either the developer or the employer. Employers accused of committing discriminatory employment practices may not cite the use of AI employment tools as a defense.
If your agency is considering using AI technology for hiring or other employment decisions, you should prepare now to comply with these requirements by next October.
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