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Connecticut enacts SB 5, new AI workplace disclosure and bias law

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13

Why it matters

Connecticut Governor Ned Lamont is expected to sign Senate Bill 5, the Connecticut Artificial Intelligence Responsibility and Transparency Act, a sweeping employment law that restricts how companies can deploy automated decision-making in hiring, promotion, discipline, and termination. The bill passed the House 131-17 and the Senate 32-4 on bipartisan votes. The law's employment provisions create two compliance windows: beginning October 1, 2026, employers can no longer use automated tools as a defense against discrimination claims, and WARN Act notices must disclose whether layoffs involve AI or technological change. Starting October 1, 2027, employers using AI that interacts with applicants or employees must provide plain-language disclosure that the person is communicating with an automated system, along with pre-decision notices describing the tool, underlying data, and employer contact information.

The bill combines provisions from multiple prior AI proposals and includes broader state-level requirements beyond employment, including consumer protections and youth-related provisions. The specific scope of what qualifies as a covered "automated employment decision tool" and how courts will interpret the non-defense provision remain to be clarified through implementation and potential litigation.

Connecticut is among the first states to establish a detailed, enforceable AI workplace framework with near-term compliance deadlines. Employers should begin inventorying automated hiring and employment tools, reviewing vendor contracts for indemnification and audit rights, and developing bias-testing and disclosure processes before October 2026. The law signals a national trend toward state-level AI regulation that will likely fragment employer compliance obligations across jurisdictions.

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