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Proposed Artificial Intelligence (AI) Employment Discrimination Laws in Six States: Essential Insights for Employers (US)

 

Colorado’s groundbreaking legislation to protect employees and job applicants from AI-based discrimination has sparked similar initiatives in at least six other states and at the federal level. With a recent Executive Order addressing various concerns regarding private-sector AI system usage, including employment discrimination, all US employers must be vigilant and anticipate potential compliance obligations associated with AI system use.

States with Proposed Legislation Addressing Algorithmic Discrimination:

In 2024, California, Georgia, Hawaii, Illinois, and Washington introduced bills to regulate AI system usage in employment decisions. These bills aim to mitigate algorithmic discrimination risks, ensuring fair treatment irrespective of protected characteristics like age, race, or gender.

Each bill mandates similar obligations for employers utilizing AI systems or automated decision tools (ADTs) in employment decisions. Employers are required to exercise reasonable care in assessing and mitigating algorithmic discrimination risks. The bills also impose affirmative reporting duties, including notifying individuals affected by AI-driven decisions and providing avenues for data correction and appeals.

Proposed Legislation Overview:

California: AB 2930 Georgia: H.B. 890 Hawaii: H.B. 1607 Illinois: H.B. 5322 Washington: H.B. 1951

Federal Considerations:

While no federal legislation addressing AI-based employment discrimination exists, the recent Executive Order signals federal interest in the matter. President Biden directs enforcement of existing consumer protection laws and the prevention of unintended bias or discrimination from AI usage. Federal regulations may mirror state legislation, imposing affirmative reporting duties and a duty of reasonable care on employers.

Implications for US Employers:

The proliferation of AI legislation suggests a continuing trend toward regulation in this area. Employers must anticipate potential impacts of federal and state regulations on AI system usage. While Colorado remains the only jurisdiction with enacted legislation, employers nationwide should remain vigilant for evolving legal landscapes.

Stay Informed with DC Civil Lawyers

As AI legislation continues to develop, our team at remains dedicated to monitoring state and federal employment law developments. We provide ongoing guidance to help employers navigate evolving regulatory frameworks and ensure compliance with emerging AI-related obligations.

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