Connecticut's CART Act Sets AI Hiring Disclosure Rules by 2027
Connecticut’s CART Act requires employers to disclose AI tools used in hiring and layoffs by October 2027.
Why it matters: Employers and legal teams must prepare for detailed AI transparency rules affecting hiring and layoffs under new state law. This sets a precedent as AI regulation expands in employment law.
- The CART Act was signed into law on May 29, 2026, effective October 1, 2027, for employer AI disclosures in hiring.
- Employers must notify employees and job applicants when AI tools impact decisions, including tool purpose, name, data used, and contact info.
- Starting October 1, 2026, Connecticut WARN Act notices on layoffs must state whether AI or technology caused job losses.
- Enforcement is by the Connecticut Attorney General under the Connecticut Unfair Trade Practices Act (CUTPA); private lawsuits are prohibited.
Connecticut Governor Ned Lamont signed Senate Bill 5 into law on May 29, 2026, establishing the Connecticut Artificial Intelligence Responsibility and Transparency Act (CART Act). This legislation sets statewide standards for transparency in AI use related to employment decisions.
Under the CART Act, starting October 1, 2027, employers who use automated employment decision tools (AI tools) must provide written notice to both employees and job applicants if AI influences hiring or promotion decisions. The required notice must include: the AI tool’s purpose; the trade name of the technology; categories and sources of personal data analyzed by the AI; and contact information for the employer deploying the AI.
Additionally, from October 1, 2026, employers in Connecticut must disclose in their layoff notices under the federal Worker Adjustment and Retraining Notification (WARN) Act if layoffs were caused in whole or part by AI or technological changes. This adds transparency about AI’s role in workforce reductions.
The CART Act makes clear that using AI does not exempt employers from liability under Connecticut's anti-discrimination laws, preserving accountability for biased or unlawful decisions. Enforcement authority lies with the Connecticut Attorney General under the Connecticut Unfair Trade Practices Act (CUTPA), which prohibits unfair or deceptive practices. Importantly, employees and applicants have no private right of action under this law.
Beyond employment, the CART Act includes provisions addressing consumer protections against AI harms, online safety, and special safeguards for youth exposed to AI chatbots. State Senator James Maroney noted the legislation positions Connecticut to lead in AI workforce readiness. Attorney General William Tong emphasized its role in mitigating risks posed by AI advances.
For legal counsels and HR departments, the CART Act requires early compliance planning to meet new notice and transparency obligations. The law could influence other states as they consider AI governance in the workplace.
By the numbers:
- May 29, 2026 — Date CART Act was signed into law
- October 1, 2027 — Effective date for AI employment disclosure requirements
- October 1, 2026 — Date mandatory AI-related notice begins for layoffs under WARN Act
Yes, but: While the law mandates employer disclosures and AG enforcement, it does not allow private lawsuits, potentially limiting employee remedies for violations.
What's next: Employers should begin audits of AI tools and update employment notice procedures before the October 2026 layoff disclosures deadline and October 2027 hiring transparency requirements.