Connecticut is the latest state to pass artificial intelligence (AI) legislation, with a new law aimed at the use of AI in consumer, employment, and government contexts. In this compliance alert, we’ll get you up to speed with how the law is applied, and highlight some best practices if your organization has operations in the state.
Summary
Connecticut’s new law, Substitute Senate Bill No. 5 (Public Act No. 26-15), was signed into law on May 29, 2026, and includes a wide range of AI-related regulations, governing everything from consumer mental health safeguarding to the creation of a state-level sandbox program for AI development.
Critically, the law includes several items related to the use of AI in selection processes and systems. These are:
- Disclosure of AI use in employment decisions: Effective October 1, 2026, (but stated to apply only after October 1, 2027), employers must provide written notice that they have deployed an automated employment-related decision technology, including the trade name of the technology, its purpose, and the categories of/source of personal data it will analyze.
- Disclosure of AI as a factor in Reductions in Force (RIFs): Effective October 1, 2026, employers must state whether layoffs are “related to the employer’s use of artificial intelligence or another technological change” when submitting written notice to the state Labor Department, as per 29 USC 2102(a).
- Clarification that AI use cannot be used as a defense against discrimination claims: While evidence of “anti-bias testing or similar proactive efforts to avoid the discriminatory practice” will be considered, the use of AI alone is not considered a defense (Effective October 1, 2026).
The law additionally creates protections for whistleblowers at “frontier developers” working in AI, prohibiting employers from discharging, disciplining, or otherwise penalizing anyone who reports safety concerns raised by the technology. The state is also launching a study of the impact of AI on its workforce, to be conducted by the Institute for Municipal and Regional Policy at the University of Connecticut.
Who Is Impacted and What Actions Are Required?
Organizations doing business in the state of Connecticut should make sure that they are aware of the law as it applies to their use of AI in selection systems and their other processes. This is not a ban on the use of AI, but it forces greater transparency, expands accountability, and increases regulatory visibility.
Organizations outside the state, or operating in multiple states, including Connecticut, should familiarize themselves with the evolving landscape for state-level AI law. The following states currently have major AI laws:
- California
- Colorado
- New York City
- Illinois
- Texas
We recently covered this topic in our ebook “AI Use in Employment Decisions and the Emergence of AI Bias Audits,” and this resource was recently updated to reflect significant legal developments in Colorado. This is a rapidly evolving legal arena, and we strongly encourage employers using AI in their processes to keep an eye on updates wherever they operate.
How Affirmity Can Help
AI’s ability to deal with the ever-growing scale and complexity of the job market makes it an important tool for modern HR teams. However, even as organizations enthusiastically adopt the technology, they must ensure it doesn’t introduce new problems. Affirmity’s AI system compliance risk assessment service helps you assess your AI usage in the context of the latest laws, using proven statistical analysis and review.
We will continue to help organizations keep track of key legislation, AI or otherwise, through our compliance alert series (sign up here to be informed of new alerts!) However, to get the up-to-the-minute, full picture of the laws where you operate, check out our newly launched HR compliance guidance solution, Employment Law Navigator.
Protect your organization and learn more about what Affirmity has to offer: Contact our team of experts today.
About the Author
Kim Hendon oversees account management and sales for Affirmity. She is responsible for building successful, long-term partnerships with clients and generating new business. Having served with the company for more than 25 years, Ms. Hendon has in-depth knowledge and broad experience in all areas of workforce analytics and HR compliance.
Ms. Hendon assists clients with the planning and development of workforce compliance and non-discrimination programs, as well as employee engagement initiatives. She holds a Bachelor of Arts in Speech Communication and a Master’s in Business Administration. Connect with her on LinkedIn.