State Lawmakers Propose Regulations on AI Use in Wage Decisions to Prevent Discrimination
State lawmakers across the U.S. are proposing regulations to govern the use of artificial intelligence (AI) in employer compensation decisions. The aim is to prevent discriminatory outcomes that may arise from algorithmic wage setting. States like California, Colorado, Illinois, and Texas have introduced or enacted legislation to address these concerns. For instance, the Colorado Artificial Intelligence Act requires employers to exercise 'reasonable care' when using AI in high-risk areas such as compensation and hiring, mandating risk assessments and employee notifications. Similarly, Illinois has amended its Human Rights Act to prohibit AI tools in employment decisions unless they are transparent and non-discriminatory. These legislative efforts reflect a growing trend to ensure AI-driven decisions comply with existing employment laws, such as the Civil Rights Act and the Equal Pay Act. 
