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Opinion & Commentary
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New CT AI law creates compliance obligations for employers
Abby Warren Christopher
Costain
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By Abby Warren and Christopher Costain
O
n May 29, Gov. Ned Lamont
signed legislation establishing
new compliance requirements
for employers that use artificial intelli-
gence in employment decisions.
The law takes effect Oct. 1, 2026,
making Connecticut one of several
states to regulate the use of AI in
hiring and other workplace decisions.
Employers using AI to help make
employment decisions — including
those relying on third-party devel-
opers of AI technology — should
ensure they comply with the new law.
Here are things to consider:
Automated employment-
related decision technology
The law restricts the use of "auto-
mated employment-related decision
technology" (AEDT) if such tools
are used by employers to make
employment-related decisions.
An AEDT is technology that
processes personal data to generate
outputs, predictions, rankings, recom-
mendations or scores that substan-
tially influence employment decisions.
The definition excludes common tools
that do not materially influence such
decisions, including word processing
programs, spread-
sheets and purely
statistical data.
An employment-re-
lated decision includes
decisions based on
personal data to hire,
promote, discipline, discharge or
affect the terms and conditions of
employment. It does not include deci-
sions concerning workplace health
and safety, scheduling or productivity.
Disclosure obligations
Beginning Oct. 1, 2027, employers
must tell employees and job appli-
cants, in plain language, when they
are interacting with an AEDT, unless
that interaction would be obvious to a
reasonable person.
Additionally, employers using an
AEDT to generate an output for, or
as a substantial factor in, an employ-
ment-related decision must provide
written notice disclosing:
• That the employer is using an AEDT;
• The AEDT's purpose and the nature
of the employment-related decision;
• The AEDT's trade name;
• The categories and sources of
personal data analyzed, and how it
will be processed; and
• The employer's
contact information.
Future regulations
may clarify when these
disclosure requirements
apply during commu-
nications with employees and job
applicants. The law does not require
disclosure of trade secrets or informa-
tion otherwise protected from disclo-
sure. If information is withheld on that
basis, the employer must notify the
affected person and explain why.
AEDT developers that have required
disclosure information must provide it to
employers so they can meet these obli-
gations. Employers also may contract
with developers to assume certain
disclosure responsibilities, provided the
agreement specifies which obligations
the developer will handle.
Enforcement
Effective Oct. 1, 2026, the law
makes clear that employers cannot
defend against a discrimination
complaint simply because an AEDT
was used in making the subject
employment decision.
However, the Connecticut Commis-
sion on Human Rights and Oppor-
tunities, or a court, may consider
evidence of anti-bias testing or other
proactive efforts to avoid discrimi-
natory outcomes and the employer's
response to those efforts.
Violations of the law constitute
unfair or deceptive trade practices
under the Connecticut Uniform
Trade Practices Act and may
be enforced only by the state
attorney general.
For violations occurring on or
before Dec. 31, 2027, the attorney
general may issue a notice of
violation if the issue can be corrected,
giving employers 60 days to
address it before initiating a formal
enforcement action.
Under the law, individuals
cannot sue employers directly for
alleged violations.
Employers using AEDTs should
review how those tools are used in
employment decisions to ensure
they comply with the new law.
They also should regularly evaluate
those processes for potential bias
and other compliance issues and
address problems when identified.
Abby Warren is a partner and
Christopher Costain is an associate
in law firm Robinson+Cole's Labor
and Employment Group.
