On July 4, 2025, President Trump signed the OBBBA into law, notably excluding a proposed 10-year moratorium on state and local AI regulations. This omission allows states to continue regulating artificial intelligence (AI) and automated decision systems (ADS), particularly in hiring practices. Currently, various states including Colorado, California, and Texas, are advancing legislation to impose stringent requirements on AI use, ensuring transparency and preventing discrimination in employment decisions. With the absence of comprehensive federal AI legislation, employers must navigate a complex landscape of state regulations concerning AI integration in workplaces. Notable laws include Colorado’s SB 205, which sets a regulatory benchmark, and Minnesota’s Consumer Data Privacy Act, which mandates disclosure of AI use. Employers must stay vigilant about evolving laws while remaining compliant with federal and state antidiscrimination laws. For insights into navigating these challenges, a forthcoming webinar will provide essential guidance for employers utilizing AI technologies.
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