Connecticut employers must now disclose AI-linked layoffs
- Section 26 of Connecticut’s Public Act 26-15 took effect Oct. 1, 2026.
- It covers employers that file layoff notices under 29 USC 2102(a).
- Employers must say whether layoffs relate to AI or another technological change.
- Connecticut’s AI hiring-tool duties apply to tools deployed from Oct. 1, 2027.
CONNECTICUT, UNITED STATES — Connecticut employers that file federal layoff notices must now tell the state Labor Department whether the job cuts are related to their use of artificial intelligence (AI) or another technological change.
The requirement, in Section 26 of Public Act 26-15, took effect Oct. 1, 2026, and applies to each employer that serves written notice on the department under 29 USC 2102(a), the federal WARN Act notice provision.
Disclosure rides on existing layoff notices
The disclosure must be made in a form and manner prescribed by the Labor Commissioner, according to the act.
The law defines AI as any machine-based system that, for any explicit or implicit objective, infers from its inputs how to generate outputs, including content, decisions, predictions or recommendations.
The act, titled “An Act Concerning Online Safety,” also covers AI companions, catastrophic AI risk and other areas.
Hiring-tool rules start in 2027
Separate provisions on automated employment-related decision technology apply to tools deployed on or after Oct. 1, 2027.
From that date, employers that deploy such tools to interact with employees or applicants must disclose in plain language that people are interacting with the technology.
Developers of those tools must give employers that deploy them the information they need to meet their duties.
Layoff notices that name AI give Connecticut a record of automation-driven job cuts, the same restructuring decisions that often move work to offshore outsourcing and business process outsourcing (BPO) partners. When employers must disclose why roles disappear, buyers comparing the top BPO companies worldwide can expect transition plans to face closer public scrutiny.
The act confirms that Connecticut now tracks whether layoffs are tied to AI or other technological change.
For enterprise buyers planning automation or outsourcing moves that trigger layoff notices, the disclosure adds a reporting step and a public record.
BPO operators that document how work transitions and which roles move are positioned to support clients through the new reporting.
Related news
- U.S. job openings hold at 7.1Mn in August as hiring stays flat · 1 Oct
- U.S. firms rebrand AI layoffs as ‘restructuring’ · 28 Aug
- 22% of firms cut entry-level hiring due to AI: Gartner · 8 Aug
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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