A bipartisan group of senators has introduced the Fair AI Employment Act, which would require companies using AI systems in hiring to conduct annual bias audits and provide candidates with explanations when AI plays a significant role in rejection decisions. The bill applies to employers with 50 or more employees.
Under the proposed legislation, the Equal Employment Opportunity Commission would gain authority to investigate and penalize companies whose AI hiring tools produce discriminatory outcomes. Companies must maintain records of AI-assisted hiring decisions for at least four years and make aggregate outcome data available to regulators.
The bill has support from both tech industry associations and labor groups, a rare alignment that gives it strong prospects for passage. Several states, including Illinois, New York, and Colorado, have already enacted similar regulations at the state level.
