Connecticut employers face new regulatory requirements starting October 1, 2027. Governor Ned Lamont signed Public Act 26-15 into law, mandating that companies disclose the use of automated technology in hiring, firing, promotions, and discipline. The law applies to any platform that processes personal data to influence these material employment decisions.
Businesses must provide specific written notice when they use AI to make or influence these decisions. This disclosure requires listing the name of the AI platform, the categories of data the system assesses, the sources of that data, and the employer's contact information. Additionally, employees and applicants must receive notice when they directly interact with an AI tool unless the nature of the interaction is obvious to a reasonable person.
Enforcement falls under the Connecticut Unfair Trade Practices Act. While the law does not grant individuals a private right to sue, the Attorney General can initiate enforcement actions. Penalties reach up to $5,000 per violation, with higher fines possible for violating injunctions. From October through December 2027, employers receive a 60-day window to correct violations after receiving notice. Starting in 2028, this grace period vanishes.
The legislation explicitly prevents employers from blaming AI to defend against claims under the Connecticut Fair Employment Practices Act. Developers of these AI platforms must supply the necessary information so employers can meet these disclosure standards. Legal departments should begin auditing current HR software to identify tools that meet the law's definition of automated decision technology before the deadline arrives.