Is AI hiring legal?
Short answer: yes — if you do it right. Using AI to screen candidates is legal in the US and EU. What's illegal is discrimination, and AI gets no exception. The law rewards exactly what good screening looks like: the same job-related evaluation for everyone, transparent, evidence-backed, with a human making the call.
The four things to know in 2026
Regulation of AI in hiring is real and growing, but the through-line is consistent — and it's all about fairness, transparency, and oversight.
NYC Local Law 144
Covers "automated employment decision tools." If you use one to hire or promote in New York City, you need an independent bias audit from the past year, a published summary of it, and candidate notice. In force since 2023, with enforcement scrutiny increasing.
EU AI Act
Classifies candidate-screening and evaluation AI as "high-risk," with obligations on transparency, data governance, record-keeping, and human oversight. The high-risk application date moved to December 2027 under the Digital Omnibus agreement.
US Title VII & the EEOC
The EEOC withdrew its 2023 AI guidance in early 2025, but the law is unchanged: Title VII, the ADA, the ADEA, and the Uniform Guidelines still apply. Any selection procedure that creates a disparate impact must be job-related and consistent with business necessity.
State laws
A growing patchwork — Illinois regulates AI in video interviews, and the Colorado AI Act imposes duties on "high-risk" hiring systems. Expect more states to follow, mostly echoing the same principles.
The compliant way to screen with AI
Across every one of these laws, the same four practices keep you defensible — and they're how Figlime is built.
Evaluate every candidate against the same job-related rubric — not résumé shortcuts that track protected traits.
Tell candidates an automated tool is being used, and get consent before screening begins.
Record why each decision was made, so it can be reviewed and audited later.
Let the tool inform the decision, but have a person make the final call.
See how Figlime applies all four on the Security & compliance page. This guide is general information, not legal advice — consult your own counsel for your situation.
AI hiring law, in brief
Is it legal to use AI to screen job candidates?
Yes. Using AI to screen or rank candidates is legal in the United States and the European Union, provided it is done lawfully: candidates are evaluated consistently against job-related criteria, the process is transparent, decisions are explainable, and a human retains oversight. What is illegal is discrimination — AI does not get an exception, so a tool that produces a disparate impact on a protected group creates the same liability as a human who does.
What does NYC Local Law 144 require?
NYC Local Law 144 governs "automated employment decision tools." Employers using them for hiring or promotion in New York City must commission an independent bias audit within the past year, publish a summary of the results, and notify candidates that an automated tool is being used. It has been in force since 2023.
How does the EU AI Act treat hiring AI?
The EU AI Act classifies AI used to recruit, filter applications, or evaluate candidates as "high-risk." High-risk systems carry obligations around risk management, data governance, transparency, record-keeping, accuracy, and human oversight. The application date for these obligations was moved to December 2027 under the Digital Omnibus agreement.
Did the EEOC withdraw its AI guidance?
In early 2025 the EEOC removed its 2023 technical-assistance documents on AI from its website. The underlying law did not change: Title VII, the ADA, the ADEA, and the Uniform Guidelines on Employee Selection Procedures still apply, and employers remain responsible for avoiding disparate impact in any selection procedure — automated or not.
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