Which AI Hiring Laws Apply to You? A Plain English Map for Recruiters

Do the old anti discrimination laws cover AI?

Yes. Title VII, the Americans with Disabilities Act and the Age Discrimination in Employment Act cover any way you select people, whether a person, a test or a model makes the call. The EEOC removed its AI hiring guidance from its website in early 2025, and an April 2025 executive order told federal agencies to drop disparate impact enforcement. Neither changed the laws themselves, and private lawsuits such as Mobley v. Workday continue.

There is also no federal AI hiring law that overrides the states. A December 2025 executive order set up a federal task force to challenge state AI laws, but as Tech Policy Press reports, states enacted more than 100 new AI laws in the first half of 2026 regardless. For now, state and city rules stand until a court or Congress says otherwise.

Which AI hiring laws are on the books?

What does Illinois require?

Illinois has two laws. The older AI Video Interview Act applies when AI analyzes recorded video interviews for Illinois based jobs: you must tell the candidate, explain how the AI works and what it looks at, and get consent first.

The newer amendment to the Illinois Human Rights Act, in force since January 1, 2026, makes it a civil rights violation to use AI that discriminates, or to use zip codes as a stand in for protected traits, and requires notice when AI is used in hiring and other employment decisions. The Illinois Department of Human Rights proposed detailed rules on that notice in May 2026 and withdrew them in June, as Seyfarth reports, so the law applies without an official format. A safe notice names the tool, what it does and which decisions it affects.

What does California require?

California has three layers. Since October 2025, rules under the state’s Fair Employment and Housing Act confirm that automated decision systems fall under discrimination law, that vendors acting for an employer can be treated as its agents, and that tool data must be kept for four years.

From January 1, 2027, privacy rules under the California Consumer Privacy Act add duties for businesses with more than $25 million in revenue that use automated tools to replace or substantially replace human decisions on hiring. According to Littler, that means a documented risk assessment, a pre use notice, and a right to opt out or appeal to a human. Real human review, by someone who understands the output and can change the decision, can take a process outside these rules.

From July 1, 2027, the No Robo Bosses Act, signed September 30, 2026, bars discipline or firing decisions based only on an automated system. It does not cover hiring.

What happened to Colorado’s AI Act?

Colorado passed the first broad state AI law in 2024, then delayed its start date. In April 2026 xAI sued to block it, the U.S. Department of Justice joined the case, and the court approved an agreement that the Attorney General will not enforce the law, or any replacement, until the court rules on xAI’s request for an injunction. In May 2026 the state replaced the law with SB 26-189, signed May 14.

The new law, summarized by McDermott Will & Emery, drops the impact assessments and risk management duties and keeps four candidate protections: notice before automated technology is used in a decision about a Colorado employee or applicant, a plain language explanation within 30 days of an adverse decision, a chance to correct inaccurate data, and meaningful human review where commercially reasonable. Only the Attorney General can enforce it, with 60 days to fix a problem first, and there is no private lawsuit under it.

It takes effect January 1, 2027. The Attorney General’s rules are still in draft, with a hearing on October 26, 2026, and xAI’s injunction request is not due until 28 days after those rules are final. So enforcement may still be on hold when the law starts. Plan for the notice and review steps anyway; they cost little and match what other states ask for.

Which other states have acted?

Connecticut passed SB 5 in May 2026. Since October 1, 2026, using an AI tool is no defense to a discrimination complaint, and from October 1, 2027 employers must tell people when an automated tool is a substantial factor in an employment decision. New Jersey adopted disparate impact rules in December 2025 that name automated hiring tools. Texas bans AI used with the intent to discriminate since January 2026, and Maryland has required consent for facial recognition in interviews since 2020.

What about the EU and the UK?

The EU AI Act lists AI used to target job ads, filter applications and evaluate candidates as high risk. Regulation 2026/1744, in force since July 27, 2026, moved those duties from August 2026 to December 2, 2027, as Ogletree explains. Some rules already apply, including the ban on emotion recognition in the workplace, so an interview tool that claims to read candidates’ emotions is off limits for EU roles now. Article 22 of the GDPR also gives people the right not to be subject to decisions based solely on automated processing that significantly affect them, which covers an automatic rejection.

In the UK, the Data Use and Access Act 2025 replaced that rule from February 5, 2026. Fully automated decisions are now allowed, but only with safeguards: tell the candidate, let them comment, offer human review and let them challenge the decision. The ICO says a token human sign off does not count.

How do you work out which laws apply to you?

Start with the job and the candidate. New York City’s law turns on jobs located in the city, Illinois on Illinois based roles and applicants, California’s privacy rules on California residents. A company in Texas hiring for a New York City role is covered.

List every tool that touches a decision. Screening, ranking, assessments, video analysis, chatbots that reject people and matching features inside your ATS all count.

Check how much weight the output carries. Several laws only apply when the tool replaces or substantially drives the decision. Meaningful human review changes the picture.

Plan for the strictest rule. If you hire in several places, one process that meets the toughest standard is easier than five different ones.

Recheck twice a year. This area changes fast. Colorado’s law was rewritten about six weeks before it was due to start. The AI hiring law checker is updated as laws change.

Quick answers

I am an agency recruiter. Do these laws apply to me or my client?

Often both. New York City’s law names employment agencies directly, and California treats vendors and agencies acting for an employer as its agents. Agree in writing who handles audits and notices.

Does using ChatGPT to rank resumes count?

It can. If a general AI tool ranks, scores or filters candidates and you rely on the result, it is being used in an employment decision. Lesson 5 covers the data side.

Is there one federal AI hiring law coming?

Not yet. Proposals to override state laws have been discussed in Congress but none has passed.

What is the single most useful step?

Keep a written list of every AI tool in your hiring process, what it decides, and where the roles are. Every law above starts there.

This lesson explains the law in plain English as of October 2026. It is not legal advice; check your own situation with an employment lawyer.