You probably won’t be too surprised to hear that 50 states are attempting to regulate AI in 50 different ways. A recent Trump executive order (EO) views the subject through an entirely different lens, but it’s clear that AI itself is evolving every day, and state and federal laws will do the same.
Below, we will address not only new AI laws but also those covering striking workers and cannabis in different states.
AI Regulations Affecting HR Practices
California’s take is worth watching due to the state’s status as a labor laboratory and the tech-heavy presence of Silicon Valley. Most recently, the Golden State’s regulations under review would place limits on automated decision-making technology (ADMT) in employment-based scenarios like hiring, compensation, promotion, or termination. Notably, employers who outsource ADMT will be required to maintain oversight, and businesses could be liable for any civil suits that arise against third parties, whether they involve privacy violations or discrimination on HR issues.
Colorado has a new “landmark” AI anti-bias law that will require private and public sector employers to conduct risk assessments for bias when AI is used for employment-based decisions. Again, employers should prepare to monitor their own ADMT tools and those of vendors for any signs of algorithmic discrimination. Sound nebulous? This guidance could help, at least until the AI tools that you are using change again.
Texas will soon ban AI that has been developed “with the intent to unlawfully discriminate against a protected class in violation of state or federal law.” This law will also place AI-based discrimination under the purview of Texas’ attorney general, rather than private civil suits.
Striking Workers And Unemployment Benefits
New York and New Jersey already allow striking and locked-out workers to claim and collect unemployment benefits. That trend is spreading.
In Oregon and Washington, striking workers will be able to receive up to 10 weeks of benefits beginning in 2026. Oregon will also extend this eligibility to public sector employees.
Meanwhile, Connecticut lawmakers passed a similar bill that was vetoed by Gov. Ned Lamont, who subsequently declared that the “Unemployment Trust Fund exists to provide support to individuals who are out of work through no fault of their own, and its long-term sustainability is critical.”
On the federal level, Rep. Rudy Yakm introduced the Securing Help for Involuntary Employment Loss and Displacement (SHIELD) Act. If passed, this bill would limit unemployment benefits to workers who lose their jobs.
The Cannabis Industry And Shifting Classifications
Cannabis remains an ever-evolving field where employers must dance around the fact that their trade is federally illegal, but they must adhere to federal labor law where applicable. An exemption has existed for workers who are considered “agricultural laborers” and don’t fall under the NLRA.
New Jersey lawmakers, however, want to make it possible for all cannabis workers to unionize and give state authorities the power to enforce ULP charges and apply penalties. But… not so fast?
The federal government, according to President Trump, is “looking at reclassification” of marijuana as a less dangerous Schedule II drug than its current Schedule I status. If that happens, expect cannabis-focused labor laws to be thrown into more disarray than usual. And you can bet that we will be monitoring that situation if it arises.
