Connecticut has joined the growing list of states regulating the use of artificial intelligence in the workplace. On May 27, 2026, Governor Ned Lamont signed the Connecticut Artificial Intelligence Responsibility and Transparency Act (SB 5) into law. The legislation creates new compliance requirements for employers that use AI-driven tools to assist with hiring, promotions, performance evaluations, compensation decisions, layoffs, or other employment-related decisions. While most of the law does not take effect until October 2027, employers should begin preparing now.
What Is Covered?
The law applies to employers that use Automated Employment-Related Decision Technology (AEDT)—a broad category that includes AI tools that generate recommendations, rankings, scores, classifications, or other outputs that materially influence employment decisions.
Importantly, the law focuses on how AI is used, not what a vendor calls the product. Even tools marketed as “assistive” or “analytics” platforms may fall within the law if they significantly influence employment decisions.
New Notice Requirements
Beginning October 1, 2027, employers using covered AI tools must provide notice to Connecticut employees and job applicants when AI is being used as a substantial factor in an employment decision.
The notice must disclose:
• That AI technology is being used.
• The purpose of the technology.
• The employment decision being evaluated.
• The categories of personal data being analyzed.
• The source of that data.
• Contact information for the employer.
Failure to comply may result in enforcement by the Connecticut Attorney General under the state’s unfair trade practices laws.
AI Is Not a Defense to Discrimination Claims
Beginning October 1, 2026, Connecticut law will expressly provide that employers cannot avoid liability for discrimination by claiming that an AI system made the decision.
In other words, if an AI-driven hiring, promotion, compensation, or termination decision produces a discriminatory result, the employer remains responsible.
The law does, however, encourage employers to conduct bias testing and other proactive reviews of AI systems. Courts and regulators may consider evidence of anti-bias testing when evaluating discrimination claims.
Additional WARN Act Reporting
Connecticut employers issuing WARN notices for mass layoffs will also be required to disclose whether the workforce reduction was related to the use of artificial intelligence or other technological changes.
Forework Takeaway
Employers should begin inventorying all workplace AI tools and determine:
• What decisions the technology influences.
• What employee or applicant data is being analyzed.
• Whether AI-generated recommendations affect hiring, promotion, discipline, compensation, or termination decisions.
• Whether vendors can provide documentation regarding bias testing and compliance support.
As more states enact AI regulations, employers should expect increasing scrutiny of workplace technology. Organizations that understand their AI tools, document their decision-making processes, and conduct regular compliance reviews will be in the strongest position to navigate this rapidly evolving area of employment law.