By: Jenna Bishop on May 28th, 2024

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HR Compliance News: Updated Guidance on Artificial Intelligence


Artificial Intelligence continues to be a confusing area for many leaders, and many companies are unsure about how AI might impact things like HR compliance. Thankfully, there is some new high-level guidance available.

In this month's blog, we're going to look at AI guidelines from: 

  1. Department of Labor (DOL)
  2. Office of Federal Contract Compliance Programs (OFCCP)
  3. Colorado (state legislation)

Remember, if you've got any questions about compliance, you can book a consultation call with a Helios HR expert.

Department of Labor (DOL)

The Department of Labor (DOL) recently published Field Assistance Bulletin (No. 2024-1), in which they provided guidance regarding the application of federal laws in employer's use of AI in the workplace. The DOL acknowledged how AI can be used to streamline tasks and improve workplace efficiency.

They also provided specific examples of how human oversight is critical for compliance with laws like the FLSA, FMLA, PUMP Act, and EPPA. They noted the use of AI in the workplace can pose potential risks to workers and ultimately, employers have to be responsible in their use of AI in order to ensure compliance with federal laws.

DOWNLOAD THE BULLETIN HERE: Field Assistance Bulletin No. 2024-1

Office of Federal Contract Compliance Programs (OFCCP)

The Office of Federal Contract Compliance Programs (OFCCP) also released updated guidance regarding the use of AI by federal contractors. The OFCCP noted federal contractors who use AI systems for employment decisions, especially in selection procedures, must review existing procedures to ensure the AI is working properly.

Federal contractors will need to ensure they are reviewing the impact and validity of their selection procedures, maintaining confidentiality, ensuring non-discrimination, and conducting routine and independent assessments of AI systems for bias and/or inequitable results.

READ THE FULL GUIDANCE HERE: Artificial Intelligence and Equal Employment Opportunity for Federal Contractors

Colorado (state legislation)

Last but not least, Colorado has become the first state to enact requirements for employers in their use of AI in hiring, firing, and other business decisions, which takes effect on February 1, 2026. This regulation will require businesses using AI to make consequential decisions to exercise reasonable care to protect CO residents from discrimination on the basis of any protected characteristics.

Employers will be required to perform an annual review of AI and disclose any discrimination to the state attorney general, implement a risk management policy and program for AI, notify CO residents of any consequential decisions made by AI, and provide the opportunity to correct data used to drive decisions made by AI.

VIEW THE BILL HERE: Senate Bill 24-205

Stay tuned for more information and guidance, as AI use in the workplace is a hot topic, and we're sure to see more states implementing regulations regarding proper use in the future.

In the meantime, here are some articles about artificial intelligence in HR: 


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