Connecticut Passes SB 5 to Regulate AI Hiring Tools, With Rules Starting Oct. 1
Updated
Updated · The National Law Review · May 15
Connecticut Passes SB 5 to Regulate AI Hiring Tools, With Rules Starting Oct. 1
2 articles · Updated · The National Law Review · May 15
SB 5 would require Connecticut employers to disclose before using automated tools in recruiting, hiring, promotion, discipline or termination, with Governor Ned Lamont expected to sign the bill.
Oct. 1, 2026 marks the start of staggered implementation, and the law broadly covers systems that generate scores, rankings, recommendations, classifications or filters that materially affect employment decisions.
Employers must explain in plain language what data a tool uses, what outputs it produces and how those outputs may be used; adverse decisions also trigger a high-level explanation of the principal reasons.
The measure also amends state employment law to cover discriminatory effects from automated processes, making anti-bias testing and human oversight critical because employers remain liable even when vendors supply the technology.
Enforcement will rest exclusively with the Connecticut attorney general under the state Unfair Trade Practices Act, adding Connecticut to a widening state-by-state patchwork of workplace AI rules.
With states passing different AI rules, are businesses facing an unmanageable patchwork of compliance laws?
New laws hold companies liable for AI bias, but can technology truly eliminate prejudice from hiring decisions?
When an algorithm denies someone a job, who is ultimately responsible: the employer or the AI's developer?
Connecticut’s Senate Bill 5: A Comprehensive Guide to the Nation’s Most Ambitious State AI Law
Overview
Connecticut’s Senate Bill 5 (SB 5), the Artificial Intelligence Responsibility and Transparency Act, puts the state at the forefront of AI regulation by establishing a clear framework for responsible AI use. The law focuses on how automated tools are used in employment decisions, requiring employers to ensure transparency, assess risks, oversee vendors, and prevent discrimination. By addressing these areas, SB 5 aims to reduce risks from AI in the workplace and align technological progress with ethical and legal standards. This approach helps foster innovation while ensuring that AI is used fairly and responsibly across Connecticut.