Connecticut SB5: The First State to Regulate AI in the Workplace — What Employers and Workers Need to Know

# Connecticut SB5: The First State to Regulate AI in the Workplace — What Employers and Workers Need to Know

> **Quick answer:** Connecticut's SB5 — formally the Artificial Intelligence Responsibility and Transparency Act — passed both legislative chambers on May 1, 2026, and Governor Ned Lamont has confirmed he will sign it. It is the first comprehensive state law to regulate how employers use AI in hiring, performance reviews, and termination decisions. Employers must audit AI tools, disclose their use, and allow workers to appeal AI-influenced decisions. The core framework takes effect October 1, 2026. This article is for informational purposes only and does not constitute legal advice. Consult a qualified employment attorney for guidance specific to your situation.

Connecticut SB5 is now the law every HR director, employment attorney, and worker in America needs to understand — even if they are not in Connecticut. The bill passed 131-17 in the House and 32-4 in the Senate on May 1, 2026, making Connecticut the first state to enact a comprehensive AI workplace regulation covering hiring, discipline, and termination. What it requires — and when — is more specific than most coverage suggests.

## What Connecticut SB5 Actually Regulates: The Scope Is Broader Than You Think

The law targets what it calls "automated employment-related decision technology" (AEDT) — defined as any computational system that processes personal data and produces an output (a score, rank, recommendation, classification, or constraint) that is a "substantial factor" in making an employment decision.

That definition is intentionally expansive. It captures: