What employers should know about key developments this week:
- State-Led Artificial Intelligence (AI) Legislation: Illinois recently codified the disparate impact theory of liability (which focuses on effect, not intent), and California has long recognized the theory. Both states’ AI frameworks should be interpreted accordingly. Texas’s Responsible AI Governance Act takes a different approach, requiring evidence of discriminatory intent.
- Discipline and Termination Oversight: California’s Senate Bill 947, the No Robo Bosses Act, would bar employers from relying solely on automated systems for discipline or termination decisions and would require human review with independent corroboration.
- Federal Pushback and State Retreat: Colorado twice delayed its original AI Act, then paused enforcement amid a lawsuit joined by the federal government. The state ultimately repealed the original law and replaced it with a narrower version focused on notice and disclosure.
In this episode of Employment Law This Week®, Epstein Becker Green attorneys Eleanor T. Chung and Nathaniel M. Glasser examine how states are regulating AI in the workplace and what employers need to know.
Transcript
[00:00:04] George Whipple: Welcome to Employment Law This Week. I’m George Whipple. States take the lead on AI legislation - Artificial intelligence is rapidly changing the workplace. States and local governments are out in front of this transition, introducing new legislation and updating regulations to stay ahead of the technology. Epstein Becker Green’s Eleanor Chung tells us why it’s no surprise that this action is taking place at the state level.
[00:00:38] Eleanor Chung: Justice Brandeis famously said that the states are laboratories of democracy, and we're definitely seeing that with regard to AI in the states. We see that with the difference in the intent vs. impact tensions in the states.
[00:00:51] George Whipple: For example, Illinois recently passed a law to codify the disparate impact theory of liability, which focuses on effect not intent, and California has long recognized this theory. Therefore, the AI regulatory frameworks in these states should be interpreted to incorporate this theory.
[00:01:14] Eleanor Chung: Texas' Responsible AI Governance Act, or TRAIGA, went the opposite way. Disparate impact alone under that legislation doesn't establish a violation. You have to have evidence that the tool was built with discriminatory intent.
[00:01:29] George Whipple: Some of these laboratories are pushing the envelope, taking novel approaches to regulating AI. Epstein Becker Green’s Nathaniel Glasser tells us about legislation that has stood out to him.
[00:01:43] Nathaniel Glasser: One of the more innovative states we've seen is Connecticut, which in May 2026 passed SB 5 or Public Act 26-15. That law regulates the use of automated employment-related decision-making technology. As of October 1st, 2026, any employer that executes a reduction in force qualifying as a mass layoff under the federal WARN Act must provide written notice to the Connecticut Department of Labor disclosing whether the employer's use of AI or other technology was a contributing factor to the reduction in force.
[00:02:18] Eleanor Chung: California's SB 947 targets the back end of employment, not just hiring. Most laws focus on screening and hiring. SB 947, on the other hand, is aimed at discipline and termination. It would bar employers from relying solely on an automated system for disciplinary or termination decisions and require human review with independent corroboration before acting on the output.
[00:02:42] Nathaniel Glasser: Notwithstanding the focus of many states and localities to regulate the use of artificial intelligence, including in the workplace, we are seeing resistance from the federal government as well as some backpedaling from certain states. For example, in Colorado, its original AI Act was delayed twice, and then it was paused as a result of litigation that was filed by xAI and joined by the Federal Justice Department. Ultimately, Colorado lawmakers repealed the original act and passed a new law that focuses on notice and disclosure.
[00:03:15] George Whipple: This space is moving quickly, and every jurisdiction is handling regulation differently, so it’s important to stay up to date.
[00:03:25] Nathaniel Glasser: To help our clients keep track of all of these developments, we've created a state AI law tracker that includes an interactive map for ease of use.
[00:03:33] George Whipple: You can find that tracker at ebglaw.com/aimap. Thanks, Nathaniel and Eleanor. And thank you for watching. We’ll see you next time.
Check Out Our State AI Law Tracker
This interactive map provides an overview of the state-level AI landscape, organizing enacted legislation across three policy domains: omnibus consumer and transparency laws, health care and life sciences statutes, and employment and workforce mandates.
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