On May 14, 2026, Colorado Governor Jared Polis signed Senate Bill 26-189, establishing revised statewide requirements for employers that rely on artificial intelligence and similar automated technologies in employment decision-making. The legislation marks a significant recalibration of Colorado's approach to workplace AI regulation and imposes immediate compliance considerations for employers operating in the state.
At the heart of SB 26-189 is a notice obligation. Colorado employers are now required to inform job applicants, employees, and others when AI or comparable automated technologies are used to make what the law characterizes as consequential employment decisions. While the precise contours of covered decisions will be central to compliance planning, employers should anticipate that the obligation reaches into core HR functions, including hiring, evaluation, and other determinations that materially affect a worker's status or opportunities.
Notably, SB 26-189 repeals and replaces a prior Colorado AI law that had faced legal challenges in court. By retiring the earlier framework and enacting a revised statute, the Colorado legislature has signaled that the prior approach required adjustment, and employers should not assume that prior compliance practices remain sufficient. Policies, vendor agreements, and internal procedures that were aligned with the previous law should be reassessed under the new statutory text.
For employers, the practical implications are immediate. Hiring and HR workflows that incorporate AI-driven screening, scoring, ranking, or recommendation tools warrant prompt review to identify where notice obligations may be triggered. Employers should also consider how notices will be delivered, when in the process they will be provided, and how recordkeeping practices will document compliance. Coordination with technology vendors is equally important, as service providers may need to confirm whether their tools fall within the scope of the new law and what information must be disclosed to applicants and workers.
Because SB 26-189 represents a meaningful shift from the prior regime, employers using or considering automated decision tools in Colorado should begin a structured review of their employment processes, training materials, and applicant communications without delay.
This article is provided for general informational purposes only and does not constitute legal advice. Clients should consult qualified counsel for guidance tailored to their specific circumstances.