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Connecticut passes SB 5, setting new AI disclosure rules for hiring

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Why it matters

Connecticut's legislature passed Senate Bill 5 on May 11, 2026, with Governor Ned Lamont expected to sign it into law. The measure is a comprehensive online safety statute, but its most significant provision for employers creates a new regulatory framework for automated employment-related decision technology (AEDT)—AI systems used in hiring, promotion, discipline, termination, and other personnel decisions. The law does not ban these systems or require pre-deployment audits. Instead, it mandates notice and transparency: employers must disclose in plain language when applicants or employees interact with AEDT, provide written notice before the system substantially factors into an employment decision, and furnish a high-level explanation of principal reasons and data sources if an adverse decision results. Trade secret protections remain available.

The effective dates for the AEDT provisions have not yet been finalized in public filings, though the bill's broader framework takes effect on a different timeline. The specific compliance deadlines and any regulatory guidance from Connecticut agencies remain to be announced.

Connecticut will become one of the first states to impose detailed AI disclosure obligations on employment decision tools at scale. Employers and AI vendors operating in the state should begin auditing current hiring and personnel systems for AEDT compliance now. The law's transparency requirements—particularly the obligation to explain adverse decisions—will likely reshape vendor contracts and internal documentation practices. Practitioners should monitor for regulatory guidance and track similar legislation in other states, as Connecticut's approach is expected to influence broader AI employment law.

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