What Employers Should Know About Connecticut’s New AI Laws
Artificial intelligence is no longer an emerging technology reserved for technology companies. Today, organizations across virtually every industry use AI tools to hire employees, provide customer service, generate content, analyze data, and make operational decisions. Recognizing both the opportunities and risks presented by these rapidly evolving technologies, including the potential for unlawful discrimination, Connecticut Governor Ned Lamont signed into law Public Act 26-15, also known as the Connecticut Artificial Intelligence Responsibility and Transparency Act (“CART Act”). The new law covers a wide range of topics within the realm of artificial intelligence, but it will immediately impact the personnel practices of many Connecticut businesses.
When does the law go into effect?
The CART Act takes effect on a staggered basis beginning on October 1, 2026, with certain provisions taking effect in January and October 2027. Employers may receive an optional 60-day grace period to cure violations occurring on or before December 31, 2027.
How will the law affect current personnel practices?
1. Automated Employee-Related Decision Technology
The new law regulates Automated Employee-Related Decision Technology (“AEDT”). AEDT is generally defined under the CART Act as “any technology that processes personal data and uses computation to generate any output.” This includes predictions, recommendations, classifications, rankings, or any other information that serves as a substantial factor used to make, or significantly influence, employment-related decisions. Routine systems that are incidental to employment-related decisions, such as word processing, spreadsheets, data storage, and anti-malware, are notably excluded from this definition.
Beginning on October 1, 2027, Connecticut employers who deploy an AEDT that is intended to interact with an employee or applicant must disclose to that employee or applicant, in plain language, that they are interacting with such technology. No disclosure is needed, however, if a reasonable person would deem it obvious that they are interacting with an AEDT.
Additionally, Connecticut employers who deploy an AEDT to generate output for the purpose of making an employment-related decision must provide written notice to the affected employee or applicant before the decision is made. The notice must include: (i) that the employer is using an AEDT; (ii) the purpose of the AEDT and the nature of the employment-related decision; (iii) the AEDT’s trade name; (iv) the categories of personal data concerning that the AEDT will analyze or process and how the data will be used in making a decision; (v) the sources of personal data; and (vi) contact information for the employer.
Violations of the AEDT provisions are considered unfair or deceptive trade practices and are enforceable by the Connecticut Attorney General. The AG may issue a “notice of violation” for violations that occur on or before December 31, 2027. The AG may bring an enforcement action against employers who fail to cure the violation within 60 days of receipt of a notice. The CART Act does not provide for private right of action, meaning that aggrieved employees or applicants cannot sue a Connecticut employer directly under these provisions.
2. Artificial Intelligence May Not Be Used as a Defense in Discrimination Cases
The CART Act makes clear that the use of automated employment-related decision technologies is not a defense against a claim of discriminatory practices. While courts and administrative agencies may consider evidence of anti-bias testing or similar proactive measures taken by Connecticut employers to avoid discrimination, use of such technologies does not create a safe harbor for employers.
3. WARN Notices
Effective October 1, 2026, Connecticut employers who serve written notices to the Labor Department under the federal Worker Adjustment and Retraining Notification Act ("WARN") must disclose whether layoffs are related to the employer’s use of artificial intelligence or another technological change, in the form and manner the Connecticut Labor Commissioner prescribes.
What steps should employers take before the CART Act takes effect?
Connecticut employers should engage their HR, legal, and privacy teams and take stock of any AI technology that is currently, or intended to be, used in any personnel-related decision-making processes. This may include resume screeners, employee or applicant ranking tools, and similar systems. The teams should work together to develop plain-language disclosures and notices and deploy them early to work out any friction points ahead of the deadlines. Connecticut employers who engage outside technology vendors should ensure that their methodologies safeguard against unintentional biases and may consider adding a human component to confirm accuracy.
Connecticut employers should also consider reviewing their internal layoff policy, draft guidance on tracking the rationale for the layoffs, and consider whether information provided by artificial information contributed to the layoff decisions.
For additional questions regarding the CART Act, or how it may impact personnel decisions, please contact our experienced Connecticut Employment Attorneys.
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