Using AI in Hiring?A Checklist for 2026 and 2027
Resume screeners, interview schedulers, assessment scoring and chatbots that answer candidates are now common in HR. They are also where US AI laws overlap most, because employment decisions are exactly what lawmakers care about. If you hire in more than one state, more than one of these rules probably applies to you.
The rules at a glance
| Where | What it requires | When |
|---|---|---|
| Illinois (HB 3773) | No AI use in recruiting, hiring, promotion, discipline or discharge that has a discriminatory effect; no ZIP codes as a stand-in for protected classes; notice to employees when AI is used | Since January 1, 2026 |
| New York City (Local Law 144) | An independent bias audit of automated hiring tools, a published audit summary, and notice to candidates | In force |
| California (CCPA automated decision rules) | For significant decisions, including employment: notice before use, an opt-out, and access to how the decision was made | January 1, 2027 |
| Colorado (SB 26-189) | Notice before a tool materially influences a decision, an explanation within 30 days of an adverse outcome, human review, and three years of records | January 1, 2027 |
Colorado's enforcement is on hold while the law is challenged in court, and federal efforts to preempt state AI laws may change the picture. The controls below are worth having either way.
Five controls that cover most of it
- Know every tool. List each AI tool that touches candidates or employees, including AI features inside your applicant tracking system, and name an owner for each.
- Tell people. Write one notice that meets the strictest rule you are under, and deliver it before the tool is used.
- Test for bias. Run a bias test across protected groups before launch and on a schedule, and keep the results. In New York City, the audit must be independent.
- Keep a person in the loop. Give rejected candidates a route to human review and an explanation in plain language.
- Fix the vendor contract. Require the vendor's testing results, notice of model changes, and help with audits. The legal duty stays with you even when the tool is theirs.
Prodigium's hiring and HR AI review checks every tool against these rules and delivers a fix list in four weeks. Book a free 30-minute call.
Sources: Illinois HB 3773; California automated decision rules; Colorado SB 26-189. New York City Local Law 144 is administered by the city's Department of Consumer and Worker Protection.
This article is general information, not legal advice.