Regulation and employment law
Laws, regulatory decisions and lawsuits: AI in the workplace, recruitment and employment law.
Viewpoint
November 2026 · 5
EU package aims to strengthen manual work in the age of AIemployeeSupport for manual trades steers people toward jobs that AI can replace less easily.SME ownerEU support for the supply of skilled tradespeople may present an opportunity.European trade union chief calls for a new social contract in the age of AIemployeeEuropean trade unions want worker protections to be part of AI regulation.HR professionalFollow the direction of the EU regulatory debate because of its bearing on workplace AI rules.New York City clarifies employer liability for AI-assisted hiring decisionsHR professionalSelection outcomes of AI screening tools must be audited; liability cannot be shifted to the vendor.SME ownerEven with hiring software from suppliers, the employer is responsible for the decision.job seekerAn automated decision may give legal grounds for an objection.Prospect union signs access agreement with Google UK covering 7,000 workersemployeeFollowing the overhaul of UK employment law, organising is possible at tech companies too.HR professionalHandling union access agreements is a new HR-legal task.managerWith a union presence, AI adoption must also be discussed with representatives.Australian public servants demand AI safeguards as politicians eye staff savingsemployeePublic-sector workers can seek guarantees on the terms of AI adoption through their unions.
October 2026 · 23
China orders employment-risk reviews before AI deployment in workforce-heavy sectorsmanagerFor operations in China, an employment impact assessment must be carried out before AI projects start.HR professionalHeadcount and skills data will have to be produced for the impact assessments.Colorado attorney general urged to delay and tighten AI hiring disclosure rulesHR professionalReview AI-generated job ads for legal risk and follow Colorado's disclosure obligations.SME ownerAds written with an AI copywriter can also create discrimination liability.US state reports from Nevada, Maine and Indiana weigh AI's labour market effectsemployeeLow-wage jobs may split: some become more valuable, others deteriorate.HR professionalState-level transparency proposals may foreshadow later reporting obligations.California's new workplace AI laws: eight takeaways for HRHR professionalFor companies with US offices, the California rules call for an immediate compliance check.managerFor US operations, legal responsibility for AI-based decisions also falls at management level.Ontario public-sector unions press province for workplace AI safeguardsemployeeCollective agreements may also include clauses on AI use and notification.HR professionalPublic-sector employers should prepare for union demands on AI.EU AI Act: recruitment AI is high-risk and HR faces obligationsHR professionalAssess the recruitment and evaluation AI tools in use, and put in place the documentation and human oversight required for the high-risk category.managerSupplier contracts should require AI compliance and explainability of decisions.job seekerIn the EU, candidates can demand stronger transparency about algorithmic selection.Singapore launches year-long internships for 3,000 students to counter AI threat to entry-level jobsearly-career professionalLong internship programmes are a public-policy response to the shrinking entry level, so it is worth looking for similar opportunities at home.HR professionalThe year-long internship model can serve as a guide for retaining the entry level.Anthropic would assign 5% of its shares to a public-interest fund over economic shocksemployeeVoluntary funds set up by AI companies are one possible source of support for displaced workers, though the details are not yet clear.California employment law changes for 2027: Newsom signed the package on 30 SeptemberHR professionalCalifornia employers need to build the 2027 rules into internal policies in advance.SME ownerWith a presence in California, have a legal expert review the new obligations.ECB's Lane: AI may weaken euro zone workers' bargaining poweremployeeStronger arguments are needed in pay negotiations: measurable performance and the added value created with AI.HR professionalPlan pay bands and the pay-rise budget with easing wage pressure in mind, which also creates a retention risk.managerEasing wage pressure does not remove the retention risk, so key staff need a separate strategy.US AI hiring laws and discrimination liability in vendor contractsHR professionalPay particular attention to audits of hiring AI tools and to contractual allocation of liability.SME ownerUsing an external recruiting tool does not remove the employer's discrimination liability.AI surveillance at work: bosses are watching more and moreemployeeFind out what data your employer collects, and ask for transparency.HR professionalCheck in advance whether AI-based monitoring complies with data protection and labour law.managerMonitoring can erode trust, so it must be proportionate and transparent.Robot tax debate: Bill Gates says pension contributions should still be paid on work a robot displacesmanagerThe possibility of a robot or AI tax may also affect the cost calculation of replacing labour.China prepares state programme to address AI's labour-market impactHR professionalThe direction of state responses will also affect workforce planning at companies operating in the Chinese market.Japan turns to AI-driven robots to ease labour shortagemanagerIn ageing economies with labour shortages, AI and robotics are a tool for filling the gap, not for cutting headcount.Most Americans rank protecting jobs above winning the AI race, as robot tax debate growsmanagerGiven public opinion and regulatory pressure, AI-driven headcount reductions should be treated as a communication and legal risk.IMF recommends Hungary ease professional regulation and expand adult educationemployeeAdult education and digital skills development may be the next policy priority.HR professionalWorkforce retraining programmes should be aligned with the available adult education options.California requires human review of AI-based layoff decisionsHR professionalHR teams should review which HR decisions rely on automated systems and build in a human review step, especially for layoffs.managerFor companies affected in California, an AI-justified layoff must be identified as such when announced, and the decision requires human approval.employeeIn California, a human must be accountable for any layoff decision.EU AI Office opens first probes into hiring and credit-scoring AIHR professionalHR should audit the recruitment software in use and request AI Act compliance documentation from vendors.SME ownerBefore using an external recruitment AI tool, small business owners should ask the vendor about its classification under the AI Act.Unions and regulators demand human oversight of algorithmic workplace decisionsemployeeCollective agreements and works-council consultations can be used to request that the conditions of AI use be set out.HR professionalBe prepared for unions to expect consultation and transparency before AI tools are introduced.Spain: Royal Decree 723/2026 sets algorithmic transparency obligations in employmentHR professionalCompanies with Spanish operations should assess which HR algorithms fall under the new transparency obligation.employeeIn Spain, employees may be entitled to request information about algorithmic decisions that affect them.UK issues first national standard for AI use in recruitmentHR professionalThe standard can serve as a starting point for an in-house policy on AI use in recruitment and for vendor audits.Pay transparency: Grant Thornton says AI can help with complianceHR professionalAI can be used as support in analysing pay structures and preparing for pay transparency.SME ownerIt is worth starting now to sort out job roles and pay bands in preparation for a transparent pay system.
September 2026 · 29
California bans AI from making layoff decisions aloneemployeeIn California, a layoff cannot be based solely on AI, which gives workers new legal protection.HR professionalLayoff processes must include a human decision step and documentation.managerHuman review is mandatory for dismissals based on AI-driven performance evaluation.AI raises interest in unions as employers remain unpreparedHR professionalPlan communication on AI rollouts and consultation with employee representatives in advance.managerDiscuss AI with workers, because misinformation can strengthen organising efforts.employeeAI can also be negotiated through collective bargaining.UK minister: plan needed for 'unprecedented' AI job lossesemployeeGovernment scenario planning signals that AI job loss is a political risk, but no concrete measures exist yet.HR professionalWatch the UK regulatory direction, as it may bring workforce-transition obligations.EU AI rules follow HR content across borders as AI Office inspections target hiringHR professionalAI tools used in recruitment should be reviewed against the rules for high-risk applications.managerFor cross-border operations, EU rules can impose requirements regardless of where the company is based.job seekerDespite the delay, EU-level protection against automated screening is expected.Class action targets Eightfold AI candidate scores over consumer-report statusHR professionalFor recruitment tools that use AI scores, check the legal classification and candidate disclosure obligations.job seekerIf the score were treated as a consumer report, candidates' rights to access and dispute it could be strengthened.Bill Gates says some jobs should be off limits to AI and firms replacing people should pay a "token tax"managerTax and regulatory risk should be built into the budget for AI replacement.EU AI Act: recruitment AI is high-risk, but some obligations get a delayHR professionalStart now on AI notices for applicants and on assessing high-risk systems.job seekerYou have the right to know if an AI assistant is screening your application.SME ownerThe delay is worth using to clarify vendor compliance.managerCompliance documentation is an important criterion when choosing recruitment AI vendors.Union contracts with AI rules: Blizzard and the entertainment industryemployeeAI protections and layoff provisions can be sought in collective bargaining.HR professionalNegotiators need to prepare for rules on AI adoption and headcount changes.US state laws on AI in employee monitoring and hiring: a September 21 overviewHR professionalA company operating in several states needs a state-by-state compliance map.employeeEmployees should ask for information about monitoring tools and AI screening.EEOC seeks consent decree in AI discrimination caseHR professionalThe effect of AI screening on candidates, such as discrimination risk, should be checked regularly.SME ownerGiven the EEOC's focus, documentation for hiring tools matters too.AI Act may not cover most workplace surveillance, The Next Web reportsHR professionalPerformance-monitoring software should also be assessed separately under data protection and labour law, not only under the AI Act.employeeProtection against workplace monitoring may have gaps in Europe too, so it is worth requesting the data-processing notice.California labor federation responds to Newsom's executive order on AI safetyemployeeUnions are actively shaping AI regulation in California.Connecticut's AI Act takes effect October 1, and employers should prepareHR professionalRecruitment and assessment processes that use AI should be reviewed before the Act takes effect.managerThe accountability and compliance framework for AI use should be set before the deadline.Von der Leyen announces quality jobs initiative to address AI's impact on workHR professionalThe EU regulatory direction may affect the use of AI in the workplace, so the content of the initiative should be followed.managerJob-quality requirements may call for planning around AI adoption.employeeWorker protections are expected to be strengthened to deal with the effects of AI.Litigation risk grows for AI-assisted hiring as Workday case seeks class certificationHR professionalVendors and the workings of AI recruitment tools should be audited, and the decision log should be preserved.managerThe employer is liable for the discriminatory effect of an AI tool, so a person accountable for decisions should be designated.job seekerLegal action against automated rejection may be possible, and the US cases could set a precedent.Reports: EU AI Act compliance inspections to begin, with HR in scopeHR professionalThe AI Act classification and documentation of AI systems used in recruitment and assessment should be checked.managerAI tools, especially in HR processes, should be audited before the December enforcement.WorldatWork asks whether AI use could remove employees' exempt status and raise overtime costsHR professionalFor roles being reshaped by AI, classification and overtime rules should be rechecked.managerRedesigning a role around AI may lead to its reclassification.New Hungarian AI strategy coming soonmanagerThe directions of the state AI strategy may affect funding and expectations.HR professionalThe strategy's training and workforce elements should be followed.Prime minister says AI and firms' preference for skilled workers drive youth unemploymentearly-career professionalGetting a first job is becoming harder, and the issue is on the political agenda.HR professionalGraduate-friendly programmes and state incentives are expected.Nearly 1,900 Blizzard workers ratify union contract with Microsoft including AI protectionsemployeeGuarantees on AI use and layoffs can be written into a collective agreement; worth putting on your own workplace bargaining agenda.HR professionalThe contract is a precedent: employers must negotiate the terms of AI adoption and layoffs with the union.managerRestructuring plans built on AI may trigger a duty to bargain.Teachers unions reach AI privacy and safety agreement with MicrosoftemployeePrivacy and safety conditions can also be sought through a union before AI tools are introduced.HR professionalAgreements with AI vendors may also give a role to representatives of the affected employee groups.Report: companies increasingly use AI tools to monitor employee productivityemployeeIt should be clarified what data the employer collects and how it uses it.HR professionalIntroducing monitoring software calls for a data protection impact assessment and transparency.Hungarian chamber aims to bring 10,000 businesses into AI useSME ownerThe chamber programme could be a source of support and training for AI adoption.employeeAI use at work could accelerate in the SME sector.US unions prepare for AI's rise and push for protectionsemployeeIn the skilled trades, building AI infrastructure creates work, while demand for union protection is growing in knowledge work.HR professionalPrepare for consultations with employee representatives on AI adoption.Poland: new HR obligations and checklists under the EU AI ActHR professionalAI tools used in hiring and appraisal can be reviewed against the published checklists.managerTransparency requirements for AI systems must be met before they are deployed.Fundamental-rights dilemmas of employers using AI: the invisible bossHR professionalThe legal risks of algorithmic management and evaluation need to be assessed.employeeEmployees may have a right to know which AI system evaluates their work.California's SB 951, requiring employers to name AI in layoffs, goes to Governor NewsomHR professionalFor employers with a presence in California, layoff notices and documentation of AI's role could become a new obligation.managerCommunication about an "AI-driven restructuring" needs legal review.US bishops urge safeguards for low-wage and young workers in the AI eraearly-career professionalProtecting young workers is becoming a social and political issue.employeeProtecting low-wage jobs is part of the regulatory debate.AI moves into public administration too: Zoltán Tanács on the government's plansemployeeSome public-sector tasks may be automated, and freed-up capacity can be expected to be reallocated.managerThe timing of AI rollout in public administration may affect demand for specialists.
August 2026 · 30
US legal risks of AI hiring: Mobley v Workday, state rules and ColoradoHR professionalUsing an AI tool does not remove liability, and it is worth running a disparate impact test.managerRelying on a vendor's score alone is itself a legal risk.SME ownerFor those recruiting in the US market, state rules may differ.California legislature passes bill banning AI tracking of worker neural data and 'robo bosses'HR professionalThe use of AI tools that track emotion and performance must be reviewed.employeeAn algorithm alone cannot decide on discipline or dismissal.managerKeeping a human decision-maker in the loop may become a legal expectation.EU tightens rules on AI in recruitment, with a right to human oversightHR professionalAI recruitment tools and internal AI-literacy requirements need to be assessed.job seekerThey can ask for human review of AI-based decisions.SME ownerIt is worth documenting the AI-literacy requirement even though its definition remains uncertain.All UK government departments use AI, but only 30% require staff to use itemployeeIn the public sector, AI use is mostly optional, but adoption is widespread.managerThe public sector's gradual rollout is an example of a non-mandatory AI policy.EU AI Act: recruitment AI can be high-risk, new guidelines issuedHR professionalAssess the recruitment tools in use task by task, and require conformity documentation from the vendor for high-risk cases.job seekerEU rules offer protection against automated screening; it is worth asking about the role of AI in the application process.SME ownerRecruitment agencies and smaller firms are also affected if they use AI-based screening tools.US state rules: bias audits and lawsuits over AI-based hiringHR professionalAI screening tools in use should be checked for bias audits and compliance with local requirements.managerSettling audit and liability terms in vendor contracts reduces legal risk.Workplace monitoring grows with AI, posing legal risk for HRemployeeAI-based monitoring is growing, so it is worth finding out what data the employer collects.HR professionalBefore introducing monitoring, legal review, notification and a proportionality assessment are needed.US judge skeptical of Meta workers' claim that AI got them firedemployeeProving AI-caused dismissal in court is difficult, and an arbitration clause in the employment contract can be an obstacle.HR professionalDocumenting the rationale for layoffs, and the legal weight of contractual dispute-resolution clauses, become more important.China rules it illegal to fire workers because AI can do their jobs; no Western country has a similar ruleHR professionalAt operations in China, a dismissal that cites AI should be started only after legal review.employeeIn China, a termination that cites AI can be challenged.Economist proposes special tax to counter AI's impact on jobsmanagerThe debate over an AI tax may also affect future budget and payroll-cost planning.AI-based performance evaluation: where the employment-law limit liesHR professionalBuild human review and advance notice into AI-based evaluation processes.managerDo not base an evaluation decision solely on an algorithm's output.employeeIf your evaluation is produced with AI, you have the right to be informed and to request human review.SME ownerClarify the employment-law notice obligations before introducing a performance-measurement tool.Workplace monitoring now covers AI use; Nissan uses AI cameras on staffemployeeIt is worth clarifying what workplace data is tracked and what you may enter into an AI tool.HR professionalMonitoring rules should be documented and communicated in advance.managerMonitoring can erode trust, so it should be applied proportionately.State AI hiring rules: compliance obligations in Connecticut, Colorado and New YorkHR professionalInventory AI tools against state rules, and provide a bias audit and candidate notice.managerResponsibility for hiring AI falls on the employer, so request audit rights in vendor contracts.SME ownerA company recruiting in several states should map the relevant state rules before using an AI screening tool.New York bill would require employers to report AI's impact on jobsHR professionalHR professionals should start structuring records of AI-related headcount changes now, so they can meet any future reporting obligation.managerManagers should use AI as a stated reason in mass layoffs only with legal sign-off.employeeReporting could make it clearer which roles AI is actually affecting.AI in HR faces regulatory scrutiny: Polish and EU contextHR professionalTreat recruitment AI used in the EU as high-risk, and ask the vendor for an audit summary.managerPointing to the vendor does not exempt you, so appoint an internal person responsible.SME ownerAsk for compliance documentation in contracts for SaaS recruitment tools.Singapore's NTUC plans to secure jobs for graduates and older workers in the AI era50+/seniorIt is worth using government and trade union reskilling programmes.early-career professionalProgrammes offered to graduates are worth using in the job search.US unions weigh AI automation threat as employers face wave of grievancesemployeeSeek collective-agreement protection against AI rollout through a representative.HR professionalA procedure should be set up for handling grievances over AI deployment.managerTalks with unions should begin before AI is introduced.South Korean bills would make employers, not AI vendors, bear the cost of AI job cutsmanagerWhen introducing AI, plan in advance for liability for job cuts and the cost of compensation.HR professionalDocumenting AI automation decisions and having a retraining plan for employees can offer protection.early-career professionalYoung workers are under pressure, so it is important to develop skills that AI can complement.As AI spreads, workers turn to unions and union contracts become an HR playbookemployeeWorkers should consider asking for AI-use and notification rules in collective agreements.HR professionalUnion AI clauses can serve as a model for internal company policy.Connecticut joins AI hiring law wave with a more measured approachHR professionalFor recruitment AI affecting U.S. workers, new compliance obligations should be checked.managerA company operating in several states needs a single policy that accounts for differences between the rules.EU AI Act classes recruitment AI as high-risk; debate over simplifying the rulesHR professionalHiring AI must be treated as high-risk, so documentation, human oversight and transparency are required.managerCompliance responsibility lies with the deployer, so suppliers must be checked as well.SME ownerIf you use an AI recruiter, check that the provider meets the requirements for high-risk systems.Hungarian government plans new university programmes, possibly including an AI master'searly-career professionalAs AI programmes expand, new learning options open up for young people choosing a field of study.HR professionalWorkforce planning should take into account AI graduates entering the market.OpenAI pays $3.2 million to settle probe over hiring of foreign workersHR professionalRecruitment practices for visa-holding and domestic workers must be documented in a non-discriminatory way.managerChecking legal compliance is essential when hiring foreign workers.California moves early to regulate workplace neurotechnologyHR professionalHandling brain and behavioural data opens a new compliance area, so it is worth assessing in advance.employeeCollecting brain and biometric data requires notice and consent.What employers must prove when citing AI for dismissals in HungaryHR professionalWhen terminating with reference to AI, the reason and the actual elimination of the position should be documented in advance.managerAI is not a general ground for termination; the change to the job role must be proven.employeeWhen AI is cited as the reason for termination, it is worth asking for proof that the reason is genuine and for reasonable alternatives.China's AI drive threatens the world's largest workforce, but Beijing wants jobs protectedmanagerIn the Chinese market, employment considerations in AI adoption may become a regulatory expectation.EU AI Act: AI tools used in recruitment are high-risk, and HR departments must prepareHR professionalTake an inventory of the recruitment and evaluation AI tools in use, and request vendors' compliance documentation.managerResponsibility remains with the employer, so an AI governance officer should be appointed.SME ownerFor the AI functions of purchased HR software, check that the vendor is compliant.AI employee monitoring creates high-risk HR data environment; Nissan uses AI cameras in factoryemployeeFor movement- and performance-tracking systems, workers have a right to be informed, and it is worth requesting the policy.HR professionalA data protection impact assessment and purpose limitation for monitoring are essential.Connecticut passes new AI law, New Jersey issues discrimination guidance for employersHR professionalUnder US state rules, algorithmic hiring tools must be audited for discrimination.managerUsing AI tools does not shield an employer from discrimination liability.Ireland's AI Office warns employers on staff AI trainingHR professionalAI literacy training should be delivered through a documented plan.managerEmployees expect transparency about the use of AI.