Preeti
Colorado has passed legislation, SB 205, to regulate artificial intelligence and prevent discrimination. The law will take effect in 2026 and requires developers of “high-risk” AI systems to avoid algorithmic discrimination, disclose information about the systems, and complete impact assessments. Governor Jared Polis signed the bill with reservations, urging lawmakers to improve it before implementation. Colorado joins other jurisdictions in advancing AI regulation, such as the U.S. Equal Employment Opportunity Commission, the U.S. Department of Labor, New York City, Tennessee, Illinois, Maryland, and the European Union.
The law defines “high-risk artificial intelligence systems” as those that significantly influence decisions in areas like employment and can lead to differential treatment based on protected classifications. Small businesses with fewer than 50 employees may be exempt from some requirements. SB 205 impacts a wide range of employment practices beyond hiring, promotion, and termination, potentially including performance management and workplace surveillance.
Employers using covered AI tools will need to comply with comprehensive steps by February 1, 2026, including implementing an AI risk management policy, conducting impact assessments, and providing detailed notices. The White House has issued principles for protecting workers from AI risks, emphasizing the protection of labor and employment rights. AI systems should not violate workers’ rights to organize, health and safety, wage and hour rights, or anti-discrimination and anti-retaliation protections.
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Source link: https://www.shrm.org/topics-tools/employment-law-compliance/colorado-enacts-ai-law
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