Connecticut Joins Growing Number of States Regulating Workplace AI and Mandating Notice for Certain AI Uses as Well as Imposing New Disclosure Requirements for Certain Reductions in Force

On Friday, May 27, 2026, Governor Ned Lamont signed into law broad legislation addressing the use of AI in Connecticut.

The new AI law has significant implications for employers in the Nutmeg State who use any type of “automated employment-related decision technology” and those contemplating mass layoffs or plant closings.

AI Use in Employment-Related Decision-Making Triggers Mandatory Notice Requirement

The AI law defines “automated employment-related decision technology” as “any technology that processes personal data and uses computation to generate any output . . . including, but not limited to, any prediction, recommendation, classification, ranking, score or other information that is a substantial factor used to make or materially influence an employment related decision . . . ” It further defines an “employment-related decision” as any decision based on an individual’s personal data regarding hiring, promotion, discipline, termination, training, or a material change in employment terms. Excluded from the law are non-material changes, such as changes in job tasks, work responsibilities, hours, and work assignments, as well as matters concerning workplace health and safety, scheduling, planning, or productivity monitoring.

The AI laws generally take effect on October 1, 2026, but the employer notice requirements do not become effective until October 1, 2027.

Use of AI Tools to Interact with Job Applicants and Employees

Starting October 1, 2027, employers who deploy an automated employment-related decision technology to directly interact with job applicants or employees must ensure that they disclose in plain language that the individual is interacting with such technology, unless a “reasonable person would deem it obvious” that they are doing so. The AI law does not explain what a reasonable person would deem obvious, so employers should exercise caution and provide actual disclosures until the state provides further guidance.

Notice Contents

This disclosure obligation means that, before using automated employment-related decision technology to make decisions, an employer will need to provide job applicants and employees with written notice that:

• The employer uses automated employment-related decision technology;
• The purposes for which the employer is using the technology and the nature of the employment-related decision that will be affected by its use;
• The trade name of the particular automated employment-related decision technology;
• The categories of personal data concerning the job applicant or employee that the technology will analyze or process, and how the personal data will be assessed in reaching a decision; and
• The employer’s contact information.

Programs and processes that simply collect data for analysis or decisions that will be made by an employer’s personnel are not covered by the AI law and do not require disclosure notices.

The legislation also specifically excludes trade secrets and other legally protected information from disclosure, but it requires that if an employer intends to withhold information on this basis, it must provide job applicants and employees with notice that such information is being withheld and the basis for withholding the information.

Enforcement of Notice Requirements

It is important to note that no private right of action exists under the AI law for the failure to provide the required notice. The state Attorney General will have the sole authority to enforce it. During the period October 1, 2026 to December 31, 2027, the Attorney General will provide employers with notice and an opportunity to cure alleged violations before initiating a formal enforcement action.

Impact on Discrimination Claims

The AI law further provides that the use of an automated employment-related decision technology may not be used as a defense to any discrimination action brought under the Connecticut Fair Employment Practices Act; however, a court may consider evidence of anti-bias testing or “similar proactive efforts to avoid the discriminatory practice.”

New WARN Notice Disclosure Requirements

Effective October 1, 2026, the AI law imposes a further obligation on employers whose layoffs qualify as a mass layoff or plant closing under the federal Worker Adjustment and Retraining Notification (WARN) Act to provide a written notice to the Connecticut Department of Labor disclosing whether the layoffs are related to the employer’s use of artificial intelligence or another technological change. To be clear, this WARN disclosure will be required any time a mass layoff or plant closing triggers WARN notices and must disclose whether the employer’s use of AI or other technology was a contributing factor to the reduction in force. The notice requirement is not limited to disclosing the use of AI or other technology to make layoff selections.

What This Means for Employers

In anticipation of the effective dates of these new obligations, employers using AI for employment-related purposes in Connecticut should consider taking several proactive steps. These include auditing any AI systems currently deployed in hiring, performance management, or other workforce decisions, and examining whether existing disclosure practices adequately inform employees and candidates when such tools are involved. Organizations should also weigh whether an independent bias audit is warranted for AI-driven employment processes, particularly to reduce exposure to disparate impact claims.

Beyond that, businesses without a formal AI governance policy should prioritize developing one. Finally, employers contemplating layoffs or plant closures should consider the reasons for these events and ensure that they make appropriate disclosures to the Department of Labor if these events are large enough to trigger WARN notices.

Epstein Becker Green will continue to monitor developments concerning this new legislation and provide updates once further guidance is issued.