Before the Algorithm Decides: Connecticut’s 2027 Rules for Artificial Intelligence in Employment

Beginning in 2027, Connecticut employers using artificial intelligence (AI) in recruiting or workforce management will face new disclosure requirements under Connecticut Public Act 26-15, enacted in 2026 as part of the state’s broader legislation regulating AI. Similar to employers in other states, Connecticut employers should begin evaluating their AI technologies, especially as failure to provide appropriate notice to employees and applicants may result in liability under the Connecticut Unfair Trade Practices Act (CUPTA).

What Technology Is Covered?

The law regulates “automated employment-related decision technology,” defined generally as technology that processes personal data and generates an output, such as a prediction, recommendation, classification, ranking, or score, that is a “substantial factor” in making or materially influencing an employment-related decision. A substantial factor is one that “meaningfully alters” the outcome of the decision.

The definition of an employment-related decision is broad. It includes decisions concerning hiring, promotion, discipline, discharge, renewal of employment, selection for training or apprenticeships, tenure, and other terms, privileges, or conditions of employment. However, the law excludes certain nonmaterial job changes as well as decisions involving workplace health and safety, scheduling and planning, or productivity monitoring.

Notice Requirements

Beginning October 1, 2027, employers using covered technology must disclose, in plain language, that the employee or applicant is interacting with automated employment-related technology. An exception applies when a reasonable person would consider that interaction obvious.

When the automated technology may serve as a substantial factor in an employment-related decision, the employer must give the employee or applicant written notice, before the final decision is made, identifying:

• that automated employment-related decision technology is being used;
• the technology’s purpose and the nature of the employment decision;
• the technology’s trade name;
• the categories and sources of personal data the technology will analyze as well as how the data will be assessed; and
• the employer’s contact information.

AI Is Not a Defense to Discrimination

As we have previously written, the Equal Opportunity Commission (EEOC) has targeted the use of AI in the employment decision making context. Connecticut has also recently made clear that an employer cannot avoid discrimination liability by pointing to an algorithm. Effective October 1, 2026, reliance on automated employment-related decision technology is not a defense to a discrimination complaint under Connecticut law. Evidence that an employer conducted anti-bias testing or took similar proactive measures, however, may be considered in a discrimination proceeding.

Consequences for Violation

For violations of the AI disclosure provisions, Connecticut law does not create a private right of action. Instead, violations are treated as unfair or deceptive trade practices and are enforceable solely by the Connecticut Attorney General under CUPTA. For certain violations occurring through December 31, 2027, the Attorney General may provide a 60-day opportunity to cure before bringing an enforcement action.

What Should Connecticut Employers Do Now?

Employers inventory automated tools used throughout the employment lifecycle, including third-party recruiting, screening, assessment, and workforce-management products. They should also determine what personal data those tools process and whether their output meaningfully affects employment decisions. Finally, employers should review vendor agreements to ensure that vendors will provide the information necessary to satisfy Connecticut’s disclosure requirements.