Is AI hiring software legal in the United States?
AI hiring software is legal in the United States, but it is regulated so it cannot discriminate. Federal law (Title VII, ADA, ADEA, and the four-fifths rule) sets the floor, and state laws add duties: NYC Local Law 144 requires an independent bias audit, Illinois requires candidate consent. Intrvio helps you meet these with human oversight and audit-ready evidence.
Is AI hiring legal in the US?
AI hiring is legal in the US, but it must comply with federal anti-discrimination law. Title VII (race, color, national origin, religion, sex), the ADA (disability), and the ADEA (age 40+) apply to AI tools, and the disparate-impact theory holds. The four-fifths (80%) rule in 29 CFR 1607.4(D) is the baseline measure for selection-rate disparities.[2]
An important nuance: the EEOC removed two AI technical-assistance documents in early 2025, but the laws themselves did not change. Only the non-binding guidance was withdrawn; there is no safe harbor and private plaintiffs can still sue. Vendors can also be liable as agents (Mobley v. Workday).
NYC Local Law 144
NYC Local Law 144 requires three things before you use an automated employment decision tool: an independent bias audit completed within the prior 12 months, a public summary of the results on your hiring page, and at least 10 business days' notice to candidates. The published summary must include the audit date, the data source, the number of applicants, the selection/scoring rates, and the impact ratios for sex, race/ethnicity, and intersectional categories.[1]
The penalties look small but stack: $500 for a first violation, $500 to $1,500 for later ones, and each day of non-compliant use plus each failure to notify counts as a separate violation. An independent audit runs roughly $5,000 to $30,000 per tool in the market; recognized auditors include Holistic AI, BABL AI, DCI Consulting, ORCAA, and BLDS.[1]
State laws to track in 2026
- Illinois. The AI Video Interview Act (820 ILCS 42) requires notice, explanation, and consent.[4] Public Act 103-0804 (Jan 1, 2026) makes AI-based discrimination, using ZIP code as a proxy, and failing to disclose AI use a civil-rights violation.[3]
- Colorado. The original SB 24-205 never took effect; it was replaced by SB 26-189, effective January 1, 2027. Enforced by the Attorney General with no private right of action; up to $20,000 per violation under the state consumer-protection act.[5]
- Other states. Maryland requires written consent for facial recognition; Connecticut PA 26-15 phases in over October 2026 and 2027; California ADS employment regulations have been in force since October 1, 2025; Texas TRAIGA took effect January 1, 2026.[7]
Employer obligations checklist
- If you hire in NYC, get an independent bias audit before use and publish the summary.
- Notify candidates that AI is used (10 business days ahead in NYC, with consent in Illinois).
- Assign a human-oversight step where an authorized person makes the final decision.
- Keep selection-rate data and decision records ready for four-fifths analysis.
- Collect methodology, logging, and change-notification evidence from your vendor.
How Intrvio helps
Intrvio treats compliance as a by-product of daily operations, not a badge you buy. To be clear, the independent audit is run by an auditor you choose and you publish the result; Intrvio produces and one-click exports the evidence that audit needs.
- Audit-ready evidence. Selection rates, transcript-anchored scores, and decision records are exportable.
- Candidate notice. A notice that AI is used, with a human-review path template.
- Human oversight. GAIA produces evidence; a human makes the decision, recorded separately.
- Region tagging. Every record carries a US region tag, proving data residency in audits.
Responsibility is shared
Let us be plain: Intrvio is a tool, the employer is the decision-maker, and this page is not legal advice. Work with your legal team. For the EU see EU AI Act compliance, for Turkey see KVKK compliant interviews. To see the product, visit AI interview platform.
FAQ
References
- [1] NYC DCWP — Automated Employment Decision Tools (Local Law 144) overview and FAQ.
- [2] Uniform Guidelines on Employee Selection Procedures — four-fifths rule, 29 CFR 1607.4(D).
- [3] Illinois Public Act 103-0804 — amends the Illinois Human Rights Act for AI in employment (effective Jan 1, 2026).
- [4] Illinois AI Video Interview Act, 820 ILCS 42 — notice, explanation, and consent.
- [5] Colorado SB 24-205 (replaced by SB 26-189; covered-ADMT transparency model, effective Jan 1, 2027).
- [6] EEOC — remedies for employment discrimination (Title VII, ADA, ADEA).
- [7] California Civil Rights Council — automated-decision-system employment regulations (effective Oct 1, 2025).