What does 'automated employment decision technology' mean under Connecticut SB 5?

Connecticut SB 5 defines AEDT as any computational process that generates outputs — scores, rankings, recommendations, classifications — that are a 'substantial factor' in an employment decision. This includes: resume screening and ranking tools, video interview analysis software, skills assessment platforms, performance evaluation algorithms, and scheduling tools that determine work hours or shifts. The threshold is 'substantial factor' — the AI does not need to be the sole decision-maker, just significantly influential.

Do out-of-state employers need to comply with Connecticut SB 5?

Yes, if you employ Connecticut residents or recruit Connecticut applicants. Connecticut SB 5 applies when the employment decision involves a Connecticut resident, regardless of where the employer is based. A US company headquartered in Texas that hires Connecticut residents using AI screening tools must comply with the AEDT provisions that take effect October 1, 2026.

What is the penalty for Connecticut SB 5 violations?

The Connecticut Attorney General enforces SB 5 with a 60-day cure period for AEDT violations — employers who receive an AG inquiry can remedy the violation within 60 days before facing fines. Note: the cure period sunsets on December 31, 2027. After that date, the AG can enforce without first providing a cure window. If you do not cure within 60 days (pre-2028), the AG can file an enforcement action. Penalties are not specified as fixed amounts in the law — the AG can seek injunctive relief and civil penalties under Connecticut's UDAP statute. Exception: AI companion chatbot violations involving minors have a private right of action with no cure period.

What must employers disclose about AEDT use under Connecticut SB 5?

Effective October 1, 2027 (not 2026): employers must disclose that AEDT is being used in the employment process. Disclosure must be given to applicants at the time of application or before AEDT is used, and to current employees before AEDT is used in decisions affecting them. The disclosure must describe the AEDT and explain its role in the employment decision. Also effective October 1, 2027: pre-decision notice required before an adverse decision is made using AEDT output, giving the individual a chance to provide supplemental information. What takes effect October 1, 2026: the anti-discrimination rules ('AI is not a defense'), developer obligations to provide compliance packages to deployers, and frontier model whistleblower protections.

What is Connecticut SB 5's whistleblower protection for AI?

Connecticut SB 5 includes whistleblower protections effective October 1, 2026 for employees of companies developing frontier AI models — defined as models trained with more than 10^26 FLOPs — who report concerns about catastrophic risk from those models. The protection covers employees who report to regulators, refuse to perform acts they reasonably believe create catastrophic risk, or participate in regulatory investigations. This provision applies specifically to frontier model developers, not to all AI companies or employers using AI in employment decisions. Employers generally should add a whistleblower protection reference to their policies anyway as a best practice.

What does 'automated employment decision technology' mean under Connecticut SB 5?

Connecticut SB 5 defines AEDT as any computational process that generates outputs — scores, rankings, recommendations, classifications — that are a 'substantial factor' in an employment decision. This includes: resume screening and ranking tools, video interview analysis software, skills assessment platforms, performance evaluation algorithms, and scheduling tools that determine work hours or shifts. The threshold is 'substantial factor' — the AI does not need to be the sole decision-maker, just significantly influential.

Connecticut SB 5 AI Compliance: What Employ…

Person reading legal documents at a desk — Connecticut SB 5 AI employer compliance checklist

October 1, 2026 is 4.5 months away. Connecticut SB 5's automated employment decision technology rules take effect then — and any Connecticut employer using AI in hiring, performance evaluation, or other employment decisions needs to be ready. Here are the 10 steps to complete before the deadline.

What Takes Effect October 1, 2026

Connecticut SB 5 has multiple effective dates. The October 1, 2026 tranche covers:

AEDT anti-discrimination rules — employers must not use AEDT that has adverse impact on protected classes without business necessity justification
AEDT developer disclosure obligations — AI tool developers must provide compliance packages to deployers (employers)
Frontier AI company whistleblower protections — employees of companies training frontier AI models protected for reporting catastrophic risk concerns

The October 1, 2027 tranche covers:

AEDT deployer disclosure to applicants and employees — employers must notify individuals that AEDT is being used
Pre-decision notices — individuals receive notice and opportunity to provide supplemental information before an adverse employment decision using AEDT output
Individual data rights — rights to request information about AEDT decisions
Synthetic media marking obligations

What this means for your checklist: Steps 1–3 (inventory, developer compliance packages, adverse impact analysis) and Step 7 (whistleblower policy) must be ready by October 1, 2026. Steps 4 and 5 (disclosure language and job posting updates) are required by October 1, 2027 — start building them now so you are not scrambling.

The 10-Step October 2026 Compliance Checklist

Step 1: Inventory Your AEDT Tools

List every AI tool used in employment decisions. A tool qualifies as AEDT if it generates output that is a "substantial factor" in decisions about hiring, promotion, performance evaluation, scheduling, or termination.

Include in your inventory:

Resume screening and ranking platforms
Video interview analysis tools
Assessment or aptitude test tools
Performance scoring systems
Work scheduling algorithms (if they affect employment terms)

Exclude: Tools used only for calendar management, payroll processing, or benefits administration with no influence on employment decisions.

Step 2: Request Developer Compliance Packages

For each AEDT tool in your inventory, request from the vendor:

Bias audit results covering the job categories you use the tool for
Adverse impact analysis by protected class
Description of the data used to train or validate the tool
Technical documentation on how the tool generates its output
Statement confirming the tool complies with Connecticut SB 5 deployer requirements

Connecticut SB 5 requires AEDT developers to provide this information to deployers. If a vendor cannot produce it, that is a compliance gap requiring escalation.

Step 3: Run Your Own Adverse Impact Analysis

Do not rely on vendor documentation alone. Pull your data and calculate selection rates by protected class for each AEDT tool. Use the EEOC four-fifths rule as your benchmark — see the EEOC AI hiring compliance checklist for the calculation methodology.

Document your findings. If adverse impact exists:

Investigate whether the tool is serving a genuine business necessity
Evaluate alternative tools or processes with lower adverse impact
Consult legal counsel on whether to continue using the tool

Step 4: Draft AEDT Disclosure Language (Required by October 1, 2027 — begin now)

Connecticut SB 5 requires disclosure to applicants and employees that AEDT is being used and what role it plays. This obligation takes effect October 1, 2027, but drafting it now ensures you are not rushing under deadline pressure. Draft language for:

Job application disclosure:

"We use automated employment decision technology [describe tool type] to [screen/rank/evaluate] applications for this role. This technology [briefly describe what it evaluates]. You may contact [contact] to learn more."

Employee notice (before AEDT used in employment decisions):

"We use automated tools that analyze [describe what is analyzed] to inform decisions about [performance evaluation/scheduling/etc.]. These tools are one input in our decision process."

Have legal counsel review the final language before October 1, 2027.

Step 5: Update Your Job Posting Templates (Required by October 1, 2027 — begin now)

Add the AEDT disclosure to your job posting template so it appears automatically on all postings where AI screening is used. This takes effect October 1, 2027 — prepare the template now and hold it for implementation. Also plan updates to:

Application confirmation emails (if AEDT triggers at application submission)
Employee handbook section on performance review process

Step 6: Establish an Adverse Decision Notice Procedure

The full pre-decision notice requirement does not apply until October 1, 2027, but you should build the procedure now. When AEDT output is a substantial factor in a negative employment decision (rejection, demotion, termination), the individual must eventually receive notice and an opportunity to provide supplemental information.

Build a procedure:

Who triggers the notice (HR? Hiring manager?)
What the notice says (what the AI evaluated, what the outcome was, how to submit supplemental information)
Timeline for response (how long does the individual have to respond?)
Who reviews the supplemental information and can override the AEDT output?

Step 7: Add Whistleblower Protection Language to Policies

Connecticut SB 5's formal whistleblower protection (effective October 1, 2026) applies to employees at companies developing frontier AI models (trained with more than 10^26 FLOPs) who report concerns about catastrophic risk. If your company is not a frontier AI developer, this provision does not directly apply — but updating your employment policies to reflect anti-retaliation protections for employees who raise AI governance concerns is best practice regardless. Update your employment policies and handbook to:

Provide a clear channel for reporting AI concerns (HR, anonymous hotline, or compliance email)
State that retaliation for raising AI-related concerns in good faith is prohibited
Reference applicable Connecticut SB 5 obligations if your company trains frontier-scale models

Step 8: Assign a Compliance Owner

Name one person responsible for SB 5 AEDT compliance. Responsibilities include:

Maintaining the AEDT inventory
Collecting and filing vendor compliance packages
Running the quarterly adverse impact analysis
Responding to employee inquiries about AEDT use
Handling any AG inquiry within the 60-day cure period

Step 9: Set a Review Calendar

Build recurring calendar events for:

Quarterly: Pull AEDT selection rate data; recalculate adverse impact by protected class
Annually (September): Request updated vendor compliance packages before October review
On tool update: Rerun adverse impact analysis after any vendor model update

Step 10: File a Readiness Assessment by September 15

Two weeks before the October 1 deadline, do a final check:

AEDT inventory complete
Developer compliance packages received for all tools
Adverse impact analysis complete; no unaddressed disparities
AEDT disclosure language added to job postings and employee notices
Adverse decision notice procedure documented
Whistleblower protection language added to policies
Compliance owner named and notified

Any gaps discovered here need to be remedied before October 1 — or you start October in a curable violation posture (60-day cure window applies).

For the full Connecticut SB 5 requirements including companion chatbot rules and synthetic media obligations, see the Connecticut AI law compliance guide. For a broader view of AI hiring tool obligations across all US states, see AI hiring tool compliance — US state laws 2026.

Get the next template in your inbox

Subscribe for updates