--- title: "AI Employment Laws by State: 2026 to 2027 Dates and Rules" description: A dated map of AI employment laws by state, covering performance, discipline, and termination rules in California, Colorado, Illinois, Texas, and Connecticut. image: https://upward365.com/hubfs/blog/shutterstock_2541222611.jpg --- [+1 (888) 210-1218](tel:18882101218) [Login](https://app.upward365.com/login) [![upward 365 logo](https://upward365.com/hubfs/logos/upward365-logo%20(1).svg "upward 365 logo")](https://upward365.com/) [![upward365 favicon](https://upward365.com/hubfs/logos/upward365-favicon.svg "upward365 favicon")](https://upward365.com/) - [Platform Overview](https://upward365.com/how-it-works) - [How it Works](https://upward365.com/how-it-works) - [Performance Management](https://upward365.com/performance-management) - [Employee Engagement](https://upward365.com/employee-engagement) - [Features & Benefits](https://upward365.com/features-and-benefits) - [Compare Platforms](https://upward365.com/compare) - [Why Upward365](https://upward365.com/about-us) - [Our Philosophy](https://upward365.com/about-us/our-philosophy) - [About](https://upward365.com/about-us) - [Customer Stories](https://upward365.com/about-us#customer_stories) - [Contact Us](https://upward365.com/contact-us) - [Resources](https://upward365.com/blog) - [Resource Library](https://upward365.com/resource-library) - [Blog](https://upward365.com/blog) - [FAQs](https://upward365.com/faqs) - [Glossary](https://upward365.com/glossary) - [Pricing](https://upward365.com/pricing) [See Upward365 in Action](https://upward365.com/demo) [See Upward365 in Action](https://upward365.com/demo) [See Upward365 in Action](https://upward365.com/demo) - [Platform Overview](https://upward365.com/how-it-works) - [How it Works](https://upward365.com/how-it-works) - [Performance Management](https://upward365.com/performance-management) - [Employee Engagement](https://upward365.com/employee-engagement) - [Features & Benefits](https://upward365.com/features-and-benefits) - [Compare Platforms](https://upward365.com/compare) - [Why Upward365](https://upward365.com/about-us) - [Our Philosophy](https://upward365.com/about-us/our-philosophy) - [About](https://upward365.com/about-us) - [Customer Stories](https://upward365.com/about-us#customer_stories) - [Contact Us](https://upward365.com/contact-us) - [Resources](https://upward365.com/blog) - [Resource Library](https://upward365.com/resource-library) - [Blog](https://upward365.com/blog) - [FAQs](https://upward365.com/faqs) - [Glossary](https://upward365.com/glossary) - [Pricing](https://upward365.com/pricing) [See Upward365 in Action](https://upward365.com/demo) [Performance Management](https://upward365.com/blog/tag/performance-management)[AI & Technology](https://upward365.com/blog/tag/ai-technology) # Five States, Six Effective Dates: Where AI-in-HR Law Lands Through 2027 **Short answer:** Five states have laws that reach AI in employment decisions beyond hiring: California, Colorado, Connecticut, Illinois, and Texas. California's FEHA regulations took effect October 1, 2025. Illinois and Texas laws took effect January 1, 2026. Connecticut phase one took effect October 1, 2026. California and Colorado add new rules on January 1, 2027. California requires human review for AI-driven discipline and termination on July 1, 2027. Connecticut phase two takes effect October 1, 2027. Most of these laws share the same core requirements: notify workers, keep a human in charge of the decision, explain adverse outcomes, and keep records. This guide tracks state laws governing performance, promotion, discipline, termination, and layoffs. Hiring-only statutes are excluded. All dates and requirements reflect sources checked Nov 2026. [AI in HR isn't banned anywhere. But five states now expect a human to own the decision and a record to back it up.](https://www.linkedin.com/shareArticle?mini=true&url=https%3A//upward365.com/blog/ai-employment-laws-by-state) ## The map | Effective | State | Law | What it requires of employers | Status | | --- | --- | --- | --- | --- | | Oct 1, 2025 | California | FEHA regulations on automated decision systems | Anti-discrimination law applies to automated decision systems used in employment decisions. Employment records, including automated decision data, kept for at least four years | In effect | | Jan 1, 2026 | Illinois | HB 3773, amending the Illinois Human Rights Act | No AI use that has the effect of discriminating in decisions including promotion, discipline, discharge, and tenure. No ZIP codes as a proxy for protected classes. Notice to employees when AI is used for these purposes | In effect | | Jan 1, 2026 | Texas | TRAIGA (HB 149) | No AI system developed or deployed with intent to unlawfully discriminate against a protected class. Disparate impact alone does not establish intent. Enforced by the attorney general | In effect | | Oct 1, 2026 | Connecticut | SB 5 (Public Act 26-15), phase 1 | Using an automated employment decision tool is not a defense to a discrimination complaint. State WARN notices must disclose whether layoffs relate to AI or other technological change | In effect | | Jan 1, 2027 | California | SB 951, amending Cal/WARN | Additional notice when a mass layoff, relocation, or termination is caused in whole or substantial part by AI or other automated technology, identifying it as technology-related | Signed Sept 30, 2026 | | Jan 1, 2027 | California | CPPA regulations on automated decisionmaking technology | Where technology replaces or substantially replaces human decisionmaking on significant decisions, including employment: pre-use notice, opt-out and access rights, and risk assessments | Adopted | | Jan 1, 2027 | California | AB 1883 | Bans workplace surveillance tools that use AI to infer an employee's emotional state or collect neural data | Signed Sept 30, 2026 | | Jan 1, 2027 | Colorado | SB 26-189, replacing the 2024 Colorado AI Act | Notice before technology materially influences a consequential decision, including employment. Explanation of adverse outcomes within 30 days. A way to correct inaccurate data. Meaningful human review when commercially reasonable. Compliance records kept three years | Signed May 14, 2026. AG rules due by Jan 1, 2027 | | Jul 1, 2027 | California | SB 947, the No Robo Bosses Act | No sole reliance on an automated decision system to discipline or terminate. When a system is the primary basis, a human reviewer corroborates using other information, and the employee gets written notice afterward | Signed Sept 30, 2026 | | Oct 1, 2027 | Connecticut | SB 5 (Public Act 26-15), phase 2 | Disclosure and pre-decision notice obligations for automated employment decision technology | Signed May 27, 2026 | | Not law | Minnesota | HF 4369 | Would have required 90 days' notice and a paid 90-day transition before AI-driven displacement | Heard without action. 2026 session adjourned May 18 | ## The rules that already apply Four legal frameworks apply right now. California's FEHA regulations, in effect since October 1, 2025, confirm that anti-discrimination law covers automated decision systems. They extend record retention from two years to four. Illinois's HB 3773 took effect January 1, 2026. It applies across nearly every employment decision, including promotion, discipline, and discharge, and it requires notice when AI is used for those purposes. The details of that notice depend on rules from the Illinois Department of Human Rights. Texas's TRAIGA also took effect January 1, 2026. For private employers it is narrow: it prohibits AI built or used with intent to discriminate, and it states that disparate impact alone does not prove intent. Connecticut's SB 5 began phasing in on October 1, 2026. Its first employment provisions do two things: they establish that relying on an automated tool is not a defense to a discrimination claim, and they require WARN filings to say whether a layoff relates to AI. ## What changes on January 1, 2027 January 1, 2027 is the busiest date on the map. California SB 951 updates Cal/WARN notices for AI displacement. AB 1883 bans AI emotion tracking and neural data collection. CPPA rules require pre-use notice, opt-out choices, and risk assessments where technology replaces or substantially replaces human decisionmaking on significant decisions. Colorado SB 26-189 replaces the 2024 AI Act on the same day. It drops the 2024 Act's risk-management program requirements while requiring advance notice, adverse outcome explanations, data correction paths, reasonable human review, and three years of recordkeeping. The attorney general enforces compliance. ## July 2027 is the date that reaches performance management directly California's [SB 947](https://upward365.com/blog/california-sb-947-ai-hr-human-review) directly targets performance management. Effective July 1, 2027, employers cannot rely solely on an automated system to discipline or terminate. When a system is the primary basis for that decision, a human reviewer must corroborate it using other information, such as evaluations, peer feedback, personnel records, or work product. The employee then receives written notice. For discipline and termination, that means a human reviewer needs a documented record to corroborate the system's output. ## The requirements that repeat across states Five core legal duties appear across state statutes: | Requirement | Where it appears | | --- | --- | | Tell people when AI is used | Illinois, Colorado, California (CPPA), Connecticut phase 2 | | Keep a human in charge of the decision | California (SB 947), Colorado | | Explain adverse outcomes and allow correction | Colorado, Connecticut phase 2 | | Keep records | California (four years), Colorado (three years) | | The tool is no excuse for discrimination | California (FEHA), Illinois, Texas, Connecticut | State laws do not ban workplace AI. They demand clear human accountability and verifiable documentation for every decision. [If a human has to corroborate an AI-driven termination, the record they need has to exist before the decision, not after.](https://www.linkedin.com/shareArticle?mini=true&url=https%3A//upward365.com/blog/ai-employment-laws-by-state) ## Minnesota and the states proposing AI layoff notice Minnesota HF 4369 proposed 90 days' notice and a paid transition period before AI job displacement. The bill stalled before adjournment on May 18, 2026. California and Connecticut have already added AI disclosure to layoff notices. Read our full analysis in [Minnesota Considered an AI Layoff Notice Law This Year](https://upward365.com/blog/minnesota-hf-4369-ai-layoff-notice). ## What a human-led system looks like against that list Every law on this list rewards the same habit: a record written by people, kept as the year happens. Managers record Notes, Uplifts, and Flight Checks in real time. Briefings structure 1:1 meetings. In the History Hub, every note, Uplift, goal update, and check-in from the year lives in one place on the employee's profile. When review time comes, managers read instead of remember. Upward365's AI support handles collating, reporting, reviewing, and suggesting—never writing reviews or comments. An AI report generator provides additional reporting capabilities and data cuts, paired with an insights comment tool that points out items in the data needing attention. A lightweight, optional AI suggestion tool reviews narratives in performance evaluations and 360-degree feedback. The human touch remains foremost while the manager writes the review and makes the final decision. Upward365 is not a compliance product. Compliance depends on your processes, notices, and oversight. Year-round documentation is what a human reviewer works from. When you need help, a real person who knows your account answers, often the same day. **See how Upward365 keeps a year of context behind every review.** [Book a Demo](https://upward365.com/demo) --- *This article is general information, not legal advice. **It was accurate as of November 2026.** Laws, regulations, and their interpretation change. Talk to employment counsel about how they apply to your organization.* [![Management IQ Assessment Blog CTA v1](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/243304513/interactive-365060707017.png)](https://upward365.com/hs/cta/wi/redirect?encryptedPayload=AVxigLLtIqFBg%2Fyp15ljWl9mqrPsbGMsCpbajSxlf1%2Bp6qurOo0Pw8cgmxT87mkdzSpbsv1i%2BoJZme7eRDISkrjCtHcSZj25NYgYS4sTemU3cZy3xexynvymELzYaFelVj4IZ726zNLFBO9jL9Bsc0E2mr%2FT7L5sroDuq7hsS%2FMSgqTfbSwLqXqziO%2FhdxMn9kqkN%2Fgsdn%2FgwtHxPAvF73exWuI%3D&webInteractiveContentId=365060707017&portalId=243304513) ## Frequently Asked Questions What states regulate AI in performance reviews and employment decisions? As of November 2026, California, Colorado, Connecticut, Illinois, and Texas have laws that reach AI used in employment decisions beyond hiring. Several take effect in 2027. Which AI employment laws take effect January 1, 2027? California's SB 951, AB 1883, and the CPPA's automated decisionmaking rules, plus Colorado's SB 26-189. Do these laws ban AI in HR? No. They require notice, human oversight, explanations, and records, and several make clear that using AI is no defense to discrimination. How long do employers have to keep AI-related employment records? California's FEHA regulations require four years for employment records, including automated decision data. Colorado's SB 26-189 requires three years for compliance records. Employers in multiple states generally plan to the longest applicable rule. What does California's AI employment law require for discipline and termination? Starting July 1, 2027, California SB 947 bars employers from relying solely on an automated decision system to discipline or terminate. When a system is the primary basis, a human reviewer must corroborate it with other information, such as evaluations, peer feedback, personnel records, or work product, and the employee receives written notice afterward. Does the Illinois AI employment law apply to performance decisions? Yes. Illinois HB 3773, in effect since January 1, 2026, prohibits AI use that has the effect of discriminating in decisions including promotion, discipline, discharge, and tenure. It also requires notice to employees when AI is used for those purposes and bars using ZIP codes as a proxy for protected classes. What does Colorado's new AI employment law require? Colorado SB 26-189 replaces the 2024 Colorado AI Act on January 1, 2027. Employers must give notice before technology materially influences a consequential employment decision, explain adverse outcomes within 30 days, offer a way to correct inaccurate data, provide meaningful human review when commercially reasonable, and keep compliance records for three years. - Recent - Topics Recent Topics - [Performance Management (39)](https://upward365.com/blog/tag/performance-management) - [Employee Engagement & Culture (27)](https://upward365.com/blog/tag/employee-engagement-culture) - [AI & Technology (16)](https://upward365.com/blog/tag/ai-technology) - [Customer Success & Service Excellence (8)](https://upward365.com/blog/tag/customer-success-service-excellence) - [HR Compliance & Employment Law (1)](https://upward365.com/blog/tag/hr-compliance-employment-law) ### Subscribe by email Share this [Share on Facebook](https://www.facebook.com/sharer/sharer.php?u=https://upward365.com/blog/ai-employment-laws-by-state&t=AI+Employment+Laws+by+State%3A+2026+to+2027+Dates+and+Rules) [Share on LinkedIn](https://www.linkedin.com/shareArticle?mini=true&url=https://upward365.com/blog/ai-employment-laws-by-state&t=AI+Employment+Laws+by+State%3A+2026+to+2027+Dates+and+Rules) [![Dave Arringdale, Co-Founder at Upward365](https://upward365.com/hubfs/landing%20page%20assets/dave-arringdale-headshot.webp)](https://upward365.com/blog/author/dave-arringdale) ### [Dave Arringdale, Co-Founder at Upward365](https://upward365.com/blog/author/dave-arringdale) Dave Arringdale is the Co-Founder of Upward365, a performance management and employee engagement platform built specifically for the underserved small to mid-sized business (SMB) market. 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