Industry guide
HR & hiring
Recruiting and people decisions are the most regulated use of AI for ordinary businesses. CV screeners, video-interview scoring, chatbots that pre-screen, promotion or scheduling algorithms and productivity monitoring all count. The EU treats employment AI as high-risk (from December 2027), Illinois bans discriminatory effect and requires notice, NYC requires annual bias audits, Ontario requires disclosure in job ads, and US courts are letting applicants sue the software vendors themselves.
Regulated uses
- CV/résumé screening, ranking and keyword filtering
- Video or game-based candidate assessments and personality scoring
- Chatbots that pre-screen or schedule applicants
- Promotion, pay, performance and termination recommendations
- Workforce monitoring and emotion or sentiment analysis
- Automated job-ad targeting that can exclude protected groups
Laws by region
| Region | Law | Status |
|---|---|---|
| EU | EU AI ActEU Artificial Intelligence Act (Regulation (EU) 2024/1689) | In force |
| EU | EU AI Omnibus 2026Digital Omnibus on AI (Regulation (EU) 2026/1744) | In force |
| US | Illinois HB 3773Illinois Human Rights Act amendment on AI in employment (HB 3773, Public Act 103-0804) | In force |
| US | NYC Local Law 144New York City Local Law 144 of 2021 — Automated Employment Decision Tools | In force |
| US | Colorado ADMT ActColorado Automated Decision-Making Technology Act (SB 26-189, replacing SB 24-205) | Upcoming |
| US | Texas TRAIGATexas Responsible Artificial Intelligence Governance Act (HB 149) | In force |
| US | EO 14365 (federal preemption push)Executive Order 14365 — Ensuring a National Policy Framework for Artificial Intelligence | In force |
| Canada | Ontario AI job-posting disclosureOntario Employment Standards Act — AI disclosure in publicly advertised job postings (Working for Workers Four Act, 2024) | In force |
| Canada | Quebec Law 25Quebec Law 25 — Act respecting the protection of personal information in the private sector (automated decision provisions) | In force |
| Canada | PIPEDA (Canada)Personal Information Protection and Electronic Documents Act (PIPEDA) | In force |
| Canada | Canada TBS ADM DirectiveTreasury Board Directive on Automated Decision-Making (with Algorithmic Impact Assessment) | In force |
| Standards | NIST AI RMFNIST AI Risk Management Framework 1.0 and Generative AI Profile (NIST AI 600-1) | Voluntary |
| Standards | ISO/IEC 42001ISO/IEC 42001:2023 — Artificial intelligence management system | Voluntary |
Obligations checklist
- Inventory every tool that touches recruiting, hiring, promotion or discipline, including AI features inside your ATS.
- Tell applicants and employees when AI is used, and say so in public job postings where required (Ontario, NYC notice, Illinois).
- Run and document adverse-impact testing at least annually; in NYC use an independent auditor and publish the summary.
- Remove birth dates, zip codes and other proxies for protected characteristics from model inputs.
- Keep a human able to review and overturn AI recommendations, and record when they do.
- Get vendor documentation on training data, testing, limitations and intended use (needed under Colorado from 2027 and the EU AI Act).
- Offer an alternative process or accommodation for candidates who ask.
- Prepare the EU high-risk file (risk management, logs, human oversight, conformity assessment) before 2 December 2027 if you hire in the EU.
Real cases
- Settlement2023 · US-federalEEOC v. iTutorGroup — hiring software that auto-rejected older applicants
Settlement announced 9 August 2023 (EEOC v. iTutorGroup, Inc., No. 1:22-cv-02565, E.D.N.Y.). iTutorGroup agreed to pay $365,000 to rejected applicants, adopt new anti-discrimination policies and training, stop asking for birth dates, invite previously rejected applicants to re-apply if US hiring resumes, and accept EEOC monitoring for five years. The company did not admit wrongdoing.
- Lawsuit2025 · US-federalMobley v. Workday — collective action over AI hiring screens (ongoing)
Ongoing as of September 2026. In July 2024 the court refused to dismiss the case, accepting the agent theory. On 16 May 2025 it conditionally certified a nationwide ADEA collective of applicants aged 40+ rejected via Workday's platform since September 2020; the opt-in notice period closed on 7 March 2026. In June 2026 the court let California FEHA claims and a proxy-discrimination disability claim proceed. No trial date, judgment or settlement has been reported.
Where do you stand in hr & hiring?
The screener is pre-filled for this sector — ten minutes to your level and gaps.
Sources
- Automated Employment Decision Tools — NYC DCWP ↗
- Illinois Requires Notice and Prohibits Discriminatory Impact in Use of AI — Crowell & Moring ↗
- The Workday AI Lawsuit Is a Wake-Up Call for HR — SHRM ↗
Last reviewed Sep 25, 2026.