Labor & Employment Law Update

Across the country, state lawmakers are recalibrating their approaches to regulating the use of AI in employment decisions. This is in direct response to pressure from the technology industry and the Trump administration. The result is a more incremental approach to AI regulation in employment shaped as much by political dynamics as by policy concerns. Employers need to pay close attention to legislative developments and agency-level regulatory actions, which may introduce new compliance expectations.

State lawmakers across the country have been busy this year trying to curb the most consequential uses of AI in employment-related decisions. As those attempts moved from idea to legislation, two powerful forces have pushed back. The tech industry is concerned about a patchwork of state rules, and the Trump administration has prioritized removing barriers to AI use. States are reacting by shifting their strategies to narrow, revise, and/or delay legislation. Employers would be wise to stay abreast of these evolving strategies to ensure compliance in a rapidly shifting regulatory landscape.