Laws Companies Have to Follow When AI Hires People
When you eventually apply for a job, AI might screen your resume. Some places now have laws about that. Cool to know.
7 min · Reviewed 2026
The big idea
Many companies use AI to read resumes and pick candidates. That can be unfair — AI can be biased without meaning to be. Some places now require companies to test their hiring AI for bias and tell job applicants when AI is used.
Real examples
New York City: companies must publicly audit their AI hiring tools for bias.
Illinois: companies must tell job applicants if AI will analyze their video interviews.
EU: AI used in hiring is classified as 'high risk' under the AI Act.
California: bills regularly proposed to add transparency around AI hiring.
Try it yourself
Even if you do not apply for jobs yet, look up 'AI hiring law' in your state with a grown-up. See what protections exist for job seekers in your area.
End-of-lesson check
15 questions · take it digitally for instant feedback at tendril.neural-forge.io/learn/quiz/end-builders-legal-AI-and-jobs-laws
What is one main concern about using AI to screen job resumes?
AI always selects the most qualified candidate without error
AI can read your mind and judge your personality
AI submits resumes to companies for you
AI can accidentally be biased against certain groups of people
In New York City, what must companies do with their AI hiring tools?
Only use AI made by New York companies
Publicly audit them for bias
Get approval from the city before using them
Report every candidate who gets rejected
What does Illinois require companies to tell job applicants about?
Whether AI will analyze their video interviews
What salary they will be offered
How much money the company spent on AI
What other candidates applied for the job
Under the EU AI Act, how is AI used in hiring classified?
As low-risk AI
As entertainment technology
As high-risk AI
As completely banned technology
In California, what kind of bills are regularly proposed regarding AI hiring?
Bills to make AI hiring mandatory
Bills to add transparency around AI hiring
Bills to give companies tax breaks for using AI
Bills to ban all job interviews
If you apply for a job in a place with these laws, what question can you always ask?
Can I meet the AI robot?
Will AI give me a job?
Does AI screen applications here?
Should I bring my own AI?
Which of these is the main goal of laws regulating AI in hiring?
Preventing discrimination in job selection
Replacing all human managers with AI
Making companies hire everyone who applies
Creating more jobs for AI programmers
Why do laws require companies to audit their AI hiring tools?
To make sure the AI works faster than humans
To check whether the AI treats groups of people unfairly
To prove the company has the most advanced technology
To count how many resumes the AI has read
What type of law primarily governs how companies use AI to hire people?
Sports and entertainment laws
Environmental protection laws
Discrimination and fairness laws
Traffic and driving laws
What does the term 'transparency' mean in the context of AI hiring laws?
Publishing all company secrets online
Being open with applicants about how AI is used
Hiring more people to work in glass buildings
Making AI systems see-through physically
Which city is mentioned as having a law requiring public audits of AI hiring tools?
Miami
Chicago
Los Angeles
New York City
What might happen if companies ignore laws requiring disclosure of AI use in hiring?
They would be forced to hire the first applicant
They could face legal penalties and fines
Their AI would automatically be destroyed
They would get a reward from the government
What is an AI 'audit' in the context of hiring tools?
A job interview conducted by AI
A software update for the company
A financial report for the company
A test to check if the AI is biased
When might job seekers most need the protections provided by these AI hiring laws?
When they are being evaluated by AI during the hiring process
When they are negotiating their salary
When they are choosing which company to apply to
When they are starting their first day at a new job
What does it mean that AI can be 'biased without meaning to be'?
The AI learns unfair patterns from old data without anyone intending discrimination
The company intentionally programs the AI to be unfair
The government forces AI to be biased
AI developers always want to discriminate against certain groups