Whose Rules Govern the Algorithmic Boss? State AI Employment Laws, Federal Preemption Threats, and the Coming Litigation Wave

by Andrew R. Lee, Jason M. Loring, Graham H. Ryan, Jones Walker LLP - The National Law Review

Several state AI employment laws — in Illinois, Texas, and Colorado — have either just taken effect or will take effect this year, imposing bias audits, notice requirements, appeal rights, and impact assessments on employers using AI in HR decisions. At the same time, the White House's Executive Order 14365, issued in December 2025, directed a new federal AI Litigation Task Force to challenge "burdensome" state AI laws as inconsistent with a minimally burdensome national AI policy framework. The result is a constitutional collision course that will directly shape how employers design and deploy algorithmic hiring tools.

Read more: https://natlawreview.com/article/whose-rules-govern-algorithmic-boss-state-ai-employment-laws-federal-preemption

Employers Turn to AI to Screen Candidates’ Social Media: Best Practices to Minimize Legal Threats

by Fisher Phillips

Roughly 70% of employers now screen social media profiles as part of the applicant screening process – but manually scrolling through Facebook posts, X feeds, and Instagram photos is time-consuming and inconsistent. Enter social media AI investigations tools that promise to streamline the process. These platforms use natural language processing (NLP) to scan candidates’ public posts, analyze language patterns and sentiment, and generate personality assessments predicting traits such as teamwork, openness, adaptability, or leadership potential. The pitch is compelling: get deeper insights into candidates' “real” personalities beyond what resumes and interviews reveal, all while saving your HR team countless hours. But before you deploy AI to comb through applicants’ social media, you need to understand the significant legal risks these tools create and consider some best practices.

Read more: https://www.fisherphillips.com/en/news-insights/employers-turn-to-ai-to-screen-candidates-social-media.html

Texas Responsible AI Governance Act compliance: A sample policy framework

The Texas Responsible Artificial Intelligence Governance Act will take effect 1 Jan. 2026; it applies broadly to all businesses operating in Texas that use an artificial intelligence system in the state as well as companies whose products or services are used by Texas residents.

The TRAIGA targets AI systems, defined as "any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, or recommendations that can influence physical or virtual environments." Its scope includes both the developer and deployer of the AI system. Businesses can use the following sample policy framework as a starting point for TRAIGA compliance.

Read more: https://iapp.org/news/a/texas-responsible-ai-governance-act-compliance-a-sample-policy-framework/?mkt_tok=MTM4LUVaTS0wNDIAAAGcTaV3-LiT2VpeFnqkeconUm4w8bJwgs3RBQC20pl6pZ4psgjjwx0y7fG_ClVOBYY76Q2svnpD9HDYJcFcif_80sr922ilAb8AHC-Ks2Bd0sQI

White House unveils AI Action Plan

by Caitlin Andrews - IAPP

The White House released its vision for artificial intelligence policy 23 July with a heavy focus on breaking down barriers to the technology’s innovation and adoption, including another attempt to stop states from enacting their own AI regulation.

The 28-page "America’s AI Action Plan" stems from President Donald Trump's January executive order on AI and is part of a marked tone shift toward policy aimed at fostering U.S. AI dominance in the face of fierce competition from China. Trump directed agencies to come up with a plan after extensive public comment from academia, civil society and industry. Additional executive orders putting some of the plan's points into action are expected, Reuters reports.

Read more: https://iapp.org/news/a/white-house-unveils-ai-action-plan/?mkt_tok=MTM4LUVaTS0wNDIAAAGb12ALkJUmpPwqxHP5doh6taqE7sHKN2WF9EblDkMAoIe-TrzI4cq-MNYG56v1C4Dj1a8iKV52zDs5bXxW3ZG7pKRygcjjQeJkwC5ZTIY8dCGP

Illinois Anti-Discrimination Law to Address AI Goes Into Effect on 1 January 2026

by K&L Gates LLP, Claire Healy, Kathleen Parker, Erinn Rigney - JD Supra

Effective 1 January 2026, Illinois House Bill 3773 (HB 3773) amends the Illinois Human Rights Act, (IHRA) to expressly prohibit employers from using artificial intelligence (AI) that “has the effect of subjecting employees to discrimination on the basis of protected classes.” Specifically, Illinois employers cannot use AI that has a discriminatory effect on employees, “[w]ith respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.”

Read more: https://www.jdsupra.com/legalnews/illinois-anti-discrimination-law-to-3367364/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link

Utah scales back reach of generative AI consumer protection law

by Davis Polk

The Utah legislature amended its Artificial Intelligence Policy Act to focus on “high-risk” generative AI interactions and to establish a new safe harbor.

Background

In March 2024, Utah became the first state to enact legislation specifically targeting generative AI (Gen AI).  The Utah Artificial Intelligence Policy Act (UAIPA), which took effect on May 1, 2024, imposed certain disclosure obligations on entities using Gen AI tools to interact with their customers and confirmed that those entities cannot avoid liability under Utah consumer protection law because the violative statement or act derived from Gen AI.  The UAIPA also sought to encourage AI innovation by establishing the Office of Artificial Intelligence Policy to administer an AI Learning Laboratory Program, consult with businesses and other stakeholders about potential regulatory proposals, and grant temporary “regulatory mitigations” to entities developing AI systems.

Read more: https://www.davispolk.com/insights/client-update/utah-scales-back-reach-generative-ai-consumer-protection-law

California’s AI Laws Are Here—Is Your Business Ready?

by Jeewon K. Serrato, Christine Mastromonaco, Shruti Bhutani Arora, Andrew Caplan, Erin Choo, Mia Rendar, Leighton Watson, Anne M. Voigts, Shani Rivaux, Johnna Purcell, Dayo Feyisayo Ajanaku - Pillsbury

January 1, 2025, marked the start of a series of significant AI laws going into effect in California. California’s 18 new AI laws represent a significant step toward regulating this space, establishing requirements regarding deepfake technology, AI transparency, data privacy and use of AI in the health care arena. These laws reinforce the state’s desire to be a pioneer in this space.

This article provides a detailed look at the enacted legislation, addresses compliance timelines and serves as a guide for businesses as they navigate compliance with California’s evolving AI landscape.

Read more: https://www.pillsburylaw.com/en/news-and-insights/california-ai-laws.html

California Takes Steps to Regulate the Use of AI for Significant Employment Decisionsby

by Jonathan P. Slowik, Jennifer J. McDermott of Proskauer Rose LLP - The National Law Review

On November 8, 2024, the California Privacy Protection Agency (CPPA) voted 4-1 to proceed with formal rulemaking regarding automated decision-making technology (“ADMT”), which the draft regulations define as “any technology that processes personal information and uses computation to execute a decision, replace human decisionmaking, or substantially facilitate human decisionmaking.” If enacted, the regulations would impose sweeping requirements on employers who rely on assistance from artificial intelligence (AI) tools in making employment decisions including hiring; allocation of work; compensation and benefits; promotion; and demotion, suspension, or termination. The draft regulations take a similar approach to laws that have passed in New York and laws that are likely to be enacted in Colorado, in that they require certain disclosures and risk assessments, and require that employees and applicants have the ability to opt-out of being evaluated by AI in some contexts. 

Read more: https://natlawreview.com/article/california-takes-steps-regulate-use-ai-significant-employment-decisions

Landmark AI Discrimination Bill Stalls Out in California Legislature, But Other AI Measures Advance

by Benjamin Ebbink, Fisher Phillips - JD Supra

California lawmakers knocked back a chance to pass a groundbreaking AI discrimination that would have required employers to provide notification – and perhaps an accommodation – to workers when artificial intelligence is used in certain critical ways during hiring or employment. The bill, which would have also required employers and AI developers to establish robust governance programs and conduct impact assessments to mitigate against algorithmic discrimination, was poised for passage but ultimately lawmakers could not agree on a final version before the legislative session ended at midnight on Saturday night. We expect to see legislators take another crack at such a proposal in 2025, so this isn’t the last you’ve heard of this proposal. Meanwhile, three other AI-related bills advanced to the governor’s desk and will be closely monitored before the September 30 deadline for action. What do employers need to know?

Read more: https://www.jdsupra.com/legalnews/landmark-ai-discrimination-bill-stalls-9064254

AI in the Workplace: The New Legal Landscape Facing US Employers

by Kimberley Lunetta, Michael Schlemmer, Zachary Shine - Morgan Lewis - JD Supra

Artificial intelligence (AI) is quickly transforming the employment landscape, automating tasks, streamlining processes, and enhancing decision-making. At the same time, the technology raises concerns about potential biases, accuracy, and increasingly complex legal compliance.

As AI’s influence grows in the United States, so too has government oversight. Lawmakers and policymakers—from the Biden administration to city governments—have issued guidance, policies, and laws to govern the use of AI in the workplace, giving employers a new legal landscape to navigate.

Read more: https://www.jdsupra.com/legalnews/ai-in-the-workplace-the-new-legal-8539979