Compliance Roundup: California to New York City — AI Rules Spread
As artificial intelligence (AI) becomes increasingly integrated into organizations, state and local lawmakers are actively working to establish new compliance frameworks to regulate AI’s use by employers. This evolving landscape presents significant challenges for HR professionals.
Currently, several key pieces of legislation are shaping the future of AI in the workplace:
California
The state of California has implemented two significant AI frameworks. The first, which took effect on October 1, clarifies that existing anti-discrimination laws apply to AI-driven employment decisions. The second framework, established by the California Privacy Protection Agency, sets forth privacy rules for automated decision-making technology.
Colorado
The Colorado AI Act, whose effective date has been delayed to mid-2026, designates employment decisions as “consequential.” This mandates that employers utilizing “high-risk” AI actively prevent algorithmic discrimination by implementing risk-management programs, conducting impact assessments, and providing clear notices to candidates and employees.
New York City
Local Law 144 in New York City enforces that employers using automated employment decision tools must conduct an independent bias audit annually. This requirement underscores the growing emphasis on accountability and fairness in AI applications within the workplace.
Other states, including Illinois, Tennessee, and Texas, have also enacted laws regulating AI, contributing to a patchwork of compliance requirements across the nation.
While federal legislation focused on AI has yet to be enacted, existing civil rights laws, such as Title VII of the Civil Rights Act of 1964, may still apply to AI-driven employment practices.
Proactive Steps for HR Professionals
To align with these complex requirements, HR professionals should take proactive steps in understanding and implementing compliance measures related to AI use in their organizations.
As AI requirements evolve, it is crucial for HR professionals to stay informed about these legislative changes to ensure compliance and mitigate potential risks associated with AI utilization in employment practices.
Additional Compliance News and Trends
DOL Agenda Released
The U.S. Department of Labor (DOL) has released a regulatory agenda outlining potential changes to environmental, social, and governance fiduciary standards and pharmacy benefit manager transparency, which could impact retirement plans and health benefits costs.
Political Apparel at Work
When revising policies on political gear, employers should find a balance between free expression and maintaining civility, adhering to anti-harassment laws, and fostering respectful workplace practices.
