Colorado AI Act Compliance Deadline June 30, 2026: What Employers Must Do in 63 Days

# Colorado AI Act Compliance Deadline June 30, 2026: What Employers Must Do in 63 Days

> **Quick answer:** The Colorado AI Act (SB 24-205) takes effect June 30, 2026 — 63 days from now. Any employer who uses AI to screen applicants, evaluate performance, or make promotion decisions must have a written risk management policy, a completed impact assessment, and a 90-day discrimination reporting protocol in place. Non-compliance is a deceptive trade practice: $20,000 per violation, $50,000 if the victim is 60 or older. A proposed replacement law is pending but has not passed, and the legislature closes May 13.

The Colorado AI Act is the first state AI regulation law in the United States to actually reach enforcement, and with 63 days left on the clock, most companies have done nothing. If your organization uses AI tools in any employment decision — hiring, scheduling, performance scoring, promotion ranking — you are a deployer under SB 24-205, and the Colorado Attorney General can come for you starting July 1, 2026.

## What Is the Colorado AI Act and Why Does It Matter Right Now?

Colorado's SB 24-205, signed by Governor Jared Polis in May 2024, was the first comprehensive state AI law in the country. It was originally set to take effect February 1, 2026, then delayed to June 30, 2026, after a failed special legislative session in August 2025 gave the General Assembly time to attempt amendments. Those amendments have not been enacted.

The law targets what it calls **high-risk AI systems** — any automated system that makes or meaningfully influences a "consequential decision" about a Colorado resident. For employers, consequential decisions specifically include: