In the absence of comprehensive federal legislation governing the use of artificial intelligence (AI) in employment decisions, several U.S. states have enacted their own regulations to address potential biases and ensure transparency in AI-driven hiring processes. This decentralized approach follows the failure of a proposed federal moratorium aimed at preventing state-level AI laws.
In Illinois, the Artificial Intelligence Video Interview Act requires employers utilizing AI to analyze video interviews to notify applicants, explain the technology’s workings, and obtain consent. Employers must also delete interview videos within 30 days upon the applicant’s request and limit video distribution to necessary evaluators. Additionally, if AI is solely used to determine whether a candidate proceeds to an in-person interview, employers are mandated to track and report the race and ethnicity of applicants to monitor for potential biases. ([news.bloomberglaw.com](https://news.bloomberglaw.com/us-law-week/states-start-to-regulate-ai-based-hiring-without-federal-guidance?utm_source=openai))
Maryland prohibits the use of facial recognition technology during pre-employment interviews unless the applicant provides written consent. The consent form must include the applicant’s name, interview date, and an acknowledgment of the use of facial recognition technology. ([news.bloomberglaw.com](https://news.bloomberglaw.com/us-law-week/states-start-to-regulate-ai-based-hiring-without-federal-guidance?utm_source=openai))
New York City has implemented the Automated Employment Decision Tools law, effective July 5, 2023. This legislation mandates that AI tools used in employment decisions undergo annual bias audits conducted by independent auditors. Employers are required to publish audit results on their websites and inform applicants about the use of such tools, including the job qualifications and data being assessed. ([news.bloomberglaw.com](https://news.bloomberglaw.com/us-law-week/states-start-to-regulate-ai-based-hiring-without-federal-guidance?utm_source=openai))
Colorado’s Artificial Intelligence Act, set to take effect on February 1, 2026, requires employers to notify employees when AI is used in employment decisions. Employers must provide explanations to employees adversely affected by AI-driven decisions, detailing the principal reason for the decision, the AI system’s contribution, and the types and sources of data processed. The law also mandates annual impact assessments and the development of risk management policies for AI systems. ([archinect.com](https://archinect.com/news/article/150477361/the-current-laws-governing-ai-in-hiring-and-the-5-states-already-enforcing-them?utm_source=openai))
Virginia’s HB 2094, known as the High-Risk Artificial Intelligence Developer and Deployer Act, has passed the state legislature and awaits the governor’s decision. If enacted, the law would impose transparency requirements, mandate AI impact assessments, and introduce safeguards against algorithmic discrimination in employment decisions. ([forbes.com](https://www.forbes.com/sites/alonzomartinez/2025/02/28/ai-hiring-regulations-are-coming-how-virginias-hb-2094-could-set-a-national-standard/?utm_source=openai))
These state-level initiatives underscore the growing recognition of the need for oversight in AI-driven employment practices. As AI continues to permeate hiring processes, businesses must stay informed about evolving regulations to ensure compliance and promote fair employment practices.
In the absence of comprehensive federal legislation governing the use of artificial intelligence (AI) in employment decisions, several U.S. states have enacted their own regulations to address potential biases and ensure transparency in AI-driven hiring processes. This decentralized approach follows the failure of a proposed federal moratorium aimed at preventing state-level AI laws.
In Illinois, the Artificial Intelligence Video Interview Act requires employers utilizing AI to analyze video interviews to notify applicants, explain the technology’s workings, and obtain consent. Employers must also delete interview videos within 30 days upon the applicant’s request and limit video distribution to necessary evaluators. Additionally, if AI is solely used to determine whether a candidate proceeds to an in-person interview, employers are mandated to track and report the race and ethnicity of applicants to monitor for potential biases. ([news.bloomberglaw.com](https://news.bloomberglaw.com/us-law-week/states-start-to-regulate-ai-based-hiring-without-federal-guidance?utm_source=openai))
Maryland prohibits the use of facial recognition technology during pre-employment interviews unless the applicant provides written consent. The consent form must include the applicant’s name, interview date, and an acknowledgment of the use of facial recognition technology. ([news.bloomberglaw.com](https://news.bloomberglaw.com/us-law-week/states-start-to-regulate-ai-based-hiring-without-federal-guidance?utm_source=openai))
New York City has implemented the Automated Employment Decision Tools law, effective July 5, 2023. This legislation mandates that AI tools used in employment decisions undergo annual bias audits conducted by independent auditors. Employers are required to publish audit results on their websites and inform applicants about the use of such tools, including the job qualifications and data being assessed. ([news.bloomberglaw.com](https://news.bloomberglaw.com/us-law-week/states-start-to-regulate-ai-based-hiring-without-federal-guidance?utm_source=openai))
Colorado’s Artificial Intelligence Act, set to take effect on February 1, 2026, requires employers to notify employees when AI is used in employment decisions. Employers must provide explanations to employees adversely affected by AI-driven decisions, detailing the principal reason for the decision, the AI system’s contribution, and the types and sources of data processed. The law also mandates annual impact assessments and the development of risk management policies for AI systems. ([archinect.com](https://archinect.com/news/article/150477361/the-current-laws-governing-ai-in-hiring-and-the-5-states-already-enforcing-them?utm_source=openai))
Virginia’s HB 2094, known as the High-Risk Artificial Intelligence Developer and Deployer Act, has passed the state legislature and awaits the governor’s decision. If enacted, the law would impose transparency requirements, mandate AI impact assessments, and introduce safeguards against algorithmic discrimination in employment decisions. ([forbes.com](https://www.forbes.com/sites/alonzomartinez/2025/02/28/ai-hiring-regulations-are-coming-how-virginias-hb-2094-could-set-a-national-standard/?utm_source=openai))
These state-level initiatives underscore the growing recognition of the need for oversight in AI-driven employment practices. As AI continues to permeate hiring processes, businesses must stay informed about evolving regulations to ensure compliance and promote fair employment practices.