Employment & Labor
State AI Employment Laws Address Monitoring, Hiring, and Bias Concerns
September 21, 2026 | Kayla Susalla
States considered 155 bills addressing AI in the workplace during the 2026 legislative session, with proposals focused on transparency, accountability, worker privacy, and workforce protection. Several states proposed requiring employers to notify employees about electronic monitoring and AI-driven surveillance, with California sending legislation to the governor's desk that would prohibit workplace surveillance tools that collect neural data or recognize emotional states. Colorado and Connecticut enacted state AI employment laws requiring employers to notify applicants when automated hiring decision tools are used and provide explanations for adverse decisions, with Colorado also granting applicants the right to request human review. Multiple states introduced AI bias assessment requirements for employers using automated employment tools, though most proposals died in committee without advancing to either chamber. Lawmakers proposed various approaches to workforce protection, including task forces to study AI's impact on job displacement, skills training initiatives, and tax incentives for employers who maintain worker headcount despite AI adoption.
