CO SB26-189: Automated Decision-Making Technology
Colorado SB26-189 introduces new requirements for employers and vendors using automated decision-making technology (AEDT) in hiring and employment screening, including bias audits, candidate notice, and risk assessments.
Aforeworn detected this change in the AI in Hiring & Employment Screening space on July 14, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Enterprise employers, staffing/RPO firms, HR-tech/ATS vendors, background-screening providers should confirm how it applies to their specific situation before acting. There is a time constraint attached: Effective date likely 2025 (specific date TBD upon enactment); start compliance preparations immediately.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors AI in Hiring & Employment Screening continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
New law mandates that any entity using AEDT for employment decisions must conduct annual bias audits, provide pre-use notice to candidates, and allow opt-out or alternative process. It also requires impact assessments and transparency reports.
Who it affects
Enterprise employers, staffing/RPO firms, HR-tech/ATS vendors, background-screening providers
What you must do
Review and update AI hiring tools to comply with audit, notice, and opt-out requirements; implement bias testing; update privacy policies and candidate communications.
Deadline
Effective date likely 2025 (specific date TBD upon enactment); start compliance preparations immediately.
Source: https://leg.colorado.gov/bills
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