As artificial intelligence becomes more embedded in the workplace, multiple states are moving to establish guardrails around how these tools are used. Several AI laws have already taken effect in 2026, and others are expected to be passed later this year.
While some of these regulations don’t explicitly mention the workplace, many of the laws being passed will affect HR operations. Here is a deeper look at state AI laws that are going into effect in 2026 and states compliance officers should keep an eye on. should keep an eye on.
- Illinois – Illinois legislators amended the Illinois Human Rights Act to explicitly cover AI-driven employment decisions. It went into effect on January 1, 2026 and applies to hiring, promotion, termination, and other workplace decisions influenced by automated tools. By connecting AI use to existing civil rights protections, Illinois places responsibility squarely on employers to address bias risks and maintain meaningful oversight.
- Texas – Texas’s Responsible Artificial Intelligence Governance Act also took effect January 1, 2026. The law introduced governance expectations for AI used in high-impact contexts. The law establishes broader standards for transparency, accountability, and responsible deployment that may apply to workforce tools depending on how they are used.
- Colorado – Colorado’s Artificial Intelligence Act was passed into law in 2024 but officially goes into effect June 30, 2026, after multiple amendments delayed its start. This act is one of the most expansive state AI laws to date and targets algorithmic discrimination and places obligations on both developers and deployers of high-risk AI systems.
- California – California is a bit of an outlier from other states as it has passed multiple AI-related laws that specifically affect vendor functions in the workplace rather than boader regulations. Two of these laws — Senate Bill 53 and AB 2013 — have already gone into effect as of January 1,2026, while Senate Bill 942 will go into effect August 2, 2026.
Beyond the laws have already gone into effect, several states are actively debating AI legislation that could expand employer obligations in future sessions.
Washington is currently evaluating proposals aimed at regulating algorithmic decision-making and preventing biased outcomes. Employment decisions are frequently discussed as a high-risk use case, and early drafts emphasize explainability and fairness.
Additional states including Utah, Hawaii, Florida, Virginia, and Maryland have introduced AI-related bills during recent legislative sessions but are still in the early stages of discussions.
