AI Disclosure Requirements in Hiring and Employment

Federal EEOC Framework

The EEOC issued guidance in May 2023 confirming that Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.) applies to employers' use of AI in hiring. Employers are liable for discriminatory outcomes of AI tools they use, even if those tools are purchased from third-party vendors. The EEOC has also issued guidance under the ADA (42 U.S.C. § 12101 et seq.) clarifying that AI-based hiring assessments must provide reasonable accommodations for applicants with disabilities.

Illinois — Artificial Intelligence Video Interview Act (AIUA)

Illinois enacted the AIUA effective January 1, 2020. It applies to any employer using AI to analyze video interviews of applicants. The AIUA requires:

• Notify the applicant before the interview that AI will be used to analyze their facial expressions, word choice, and other characteristics
• Explain how the AI works and what general types of characteristics it uses to evaluate candidates
• Obtain the applicant's consent before using AI analysis
• Limit sharing of video interviews to those whose expertise is necessary to evaluate the applicant
• Destroy video interviews within 30 days of an applicant's request

820 ILCS 42/1 et seq. Illinois BIPA (740 ILCS 14) separately applies if the AI system captures biometric identifiers, with private right of action and statutory damages of $1,000–$5,000 per violation.

New York City — Local Law 144

NYC Local Law 144 (effective July 5, 2023) applies to employers and employment agencies using automated employment decision tools (AEDTs) to screen candidates for positions based in NYC. Requirements:

• Commission an independent annual bias audit of the AEDT covering race/ethnicity and sex categories
• Publish a summary of the bias audit results on your website at least 10 days before using the tool
• Notify candidates and employees at least 10 business days before the AEDT is used to evaluate them
• Upon request, provide candidates with information about the data collected and job qualifications assessed

N.Y.C. Admin. Code § 20-870 et seq.

Maryland — AI Employment Legislation

Maryland has considered legislation addressing employer use of AI in employment decisions, with particular focus on AI tools that may produce discriminatory outcomes. Maryland employers should review current Maryland annotated code and Maryland Department of Labor guidance for enacted obligations, as the status and codified citation of specific AI employment bills have evolved through 2024–2026 legislative sessions. Federal EEOC guidance on AI in hiring applies to all Maryland employers regardless of state law status.

Colorado — High-Risk AI in Employment Decisions

Colorado SB 24-205 (effective February 1, 2026) applies when a deployer uses a high-risk AI system to make or substantially assist a consequential employment decision. Obligations include consumer notices, appeal rights, impact assessments, and risk management programs. Colo. Rev. Stat. § 6-1-1701 et seq.

Employer Compliance Checklist

• Identify every AI tool used in your hiring process: resume screeners, video interview analyzers, assessment platforms, and ranking algorithms
• If any tool analyzes video interviews, comply with Illinois AIUA for all applicants
• If filling positions in New York City, commission a bias audit and post disclosures per NYC Local Law 144
• If operating in Colorado, determine whether your AI hiring tools qualify as high-risk AI systems under SB 24-205
• Review EEOC AI guidance and ensure your AI hiring tools have been assessed for disparate impact
• Include AI use disclosure in job postings as a proactive best practice regardless of state-specific requirements