View our Before the Algorithm Decides: Connecticut’s 2027 Rules for Artificial Intelligence in Employment insight.
What Technology Is Covered? The law regulates “automated employment-related decision technology,” which processes personal data and generates outputs like predictions, recommendations, classifications, rankings, or scores. These outputs must be a “substantial factor” (meaningfully altering the outcome) in an employment-related decision. This broad definition covers decisions related to hiring, promotion, discipline, discharge, employment renewal, training, apprenticeships, tenure, and other terms or conditions of employment. However, it specifically excludes nonmaterial job changes, and decisions concerning workplace health and safety, scheduling and planning, or productivity monitoring. Notice Requirements Effective October 1, 2027, employers utilizing this covered technology must clearly disclose, in plain language, to employees or applicants that they are interacting with automated employment-related technology. This disclosure is not required if a reasonable person would consider the interaction obvious. Furthermore, if the automated technology is a substantial factor in an employment-related decision, the employer must provide written notice before the final decision is made. This notice must specify: the use of automated employment-related decision technology, its purpose and the nature of the employment decision, the technology's trade name, the categories and sources of personal data it will analyze and how this data will be assessed, and the employer's contact information. AI Is Not a Defense to Discrimination Connecticut's new law, effective October 1, 2026, explicitly states that relying on automated employment-related decision technology does not serve as a defense against discrimination complaints under state law. This aligns with concerns previously raised by the Equal Opportunity Commission (EEOC) regarding AI in employment decisions. While AI cannot shield an employer from discrimination liability, evidence demonstrating that the employer conducted anti-bias testing or implemented similar proactive measures may be taken into consideration during discrimination proceedings. Consequences for Violation The Connecticut law does not grant a private right of action for violations of its AI disclosure provisions. Instead, these violations are categorized as unfair or deceptive trade practices, making them enforceable exclusively by the Connecticut Attorney General under the Connecticut Unfair Trade Practices Act (CUPTA). For certain violations that occur up to December 31, 2027, the Attorney General has the discretion to offer a 60-day period for the employer to rectify the violation before initiating an enforcement action. What Should Connecticut Employers Do Now? Employers in Connecticut are advised to immediately inventory all automated tools they use throughout the entire employment lifecycle. This includes third-party products used for recruiting, screening, assessment, and general workforce management. It is crucial to identify what personal data these tools process and to evaluate whether their outputs significantly influence employment decisions. Additionally, employers should review their vendor agreements to ensure that these vendors can supply all the necessary information to comply with Connecticut’s new disclosure requirements.
What Technology Is Covered?
The law regulates “automated employment-related decision technology,” which processes personal data and generates outputs like predictions, recommendations, classifications, rankings, or scores. These outputs must be a “substantial factor” (meaningfully altering the outcome) in an employment-related decision. This broad definition covers decisions related to hiring, promotion, discipline, discharge, employment renewal, training, apprenticeships, tenure, and other terms or conditions of employment. However, it specifically excludes nonmaterial job changes, and decisions concerning workplace health and safety, scheduling and planning, or productivity monitoring.
Notice Requirements
Effective October 1, 2027, employers utilizing this covered technology must clearly disclose, in plain language, to employees or applicants that they are interacting with automated employment-related technology. This disclosure is not required if a reasonable person would consider the interaction obvious. Furthermore, if the automated technology is a substantial factor in an employment-related decision, the employer must provide written notice before the final decision is made. This notice must specify: the use of automated employment-related decision technology, its purpose and the nature of the employment decision, the technology's trade name, the categories and sources of personal data it will analyze and how this data will be assessed, and the employer's contact information.
AI Is Not a Defense to Discrimination
Connecticut's new law, effective October 1, 2026, explicitly states that relying on automated employment-related decision technology does not serve as a defense against discrimination complaints under state law. This aligns with concerns previously raised by the Equal Opportunity Commission (EEOC) regarding AI in employment decisions. While AI cannot shield an employer from discrimination liability, evidence demonstrating that the employer conducted anti-bias testing or implemented similar proactive measures may be taken into consideration during discrimination proceedings.
Consequences for Violation
The Connecticut law does not grant a private right of action for violations of its AI disclosure provisions. Instead, these violations are categorized as unfair or deceptive trade practices, making them enforceable exclusively by the Connecticut Attorney General under the Connecticut Unfair Trade Practices Act (CUPTA). For certain violations that occur up to December 31, 2027, the Attorney General has the discretion to offer a 60-day period for the employer to rectify the violation before initiating an enforcement action.
What Should Connecticut Employers Do Now?
Employers in Connecticut are advised to immediately inventory all automated tools they use throughout the entire employment lifecycle. This includes third-party products used for recruiting, screening, assessment, and general workforce management. It is crucial to identify what personal data these tools process and to evaluate whether their outputs significantly influence employment decisions. Additionally, employers should review their vendor agreements to ensure that these vendors can supply all the necessary information to comply with Connecticut’s new disclosure requirements.
