Current Landscape: Federal and State Hiring AI Bills
AI-powered hiring tools have become one of the most scrutinized areas of AI regulation. Employers across Indiana are using automated resume screening, AI-scored video interviews, predictive analytics for candidate selection, and chatbot-driven initial assessments. Each of these tools is the subject of proposed legislation at both the federal and state level.
At the federal level, multiple bills would require employers to disclose AI use in hiring, provide explanations to rejected candidates, and conduct bias audits. At the state level, the Indiana General Assembly has introduced bills mirroring these requirements with Indiana-specific enforcement. Illinois has already enacted the AI Video Interview Act, which directly affects Indiana employers who hire across state lines.
The common thread across all proposed legislation is transparency: candidates have a right to know when AI is evaluating them, and employers have an obligation to ensure these tools do not discriminate.
Key Takeaway
The common thread across all proposed hiring AI legislation is transparency: candidates have a right to know when AI is evaluating them, and employers must ensure these tools do not discriminate.
Related Bills
S 5055
Senator Mark Warner (D-VA) introduced this bill to create a National Workforce Transition Board that would fund training and education for workers displaced by AI and emerging tech. It's an advisory and grant-making body, not a regulatory one, so it doesn't impose new rules on how companies use AI.
Last action: Jul 21, 2026
HR 9715
Rep. David Schweikert (R-AZ) introduced this bill to explicitly allow the use of artificial intelligence in arbitration proceedings. It would greenlight AI tools acting as arbitrators or assisting in dispute resolution, a practice currently in legal gray area under federal arbitration law.
Last action: Jul 15, 2026
HB1700
Illinois HB1700, sponsored by Rep. Ann Williams and enacted as Public Act 104-0477, requires wind, solar, and battery storage projects seeking High Impact Business tax benefits to be built under project labor agreements. It also revamps rules for distributed energy storage rebates, virtual power plants, utility data sharing, and state authority to override local siting denials for clean energy facilities. This bill contains no AI-specific provisions.
Last action: Jun 26, 2026
S 4825
Senator Bernie Sanders introduced this bill to slap a new federal excise tax on 'systemically important AI activity,' which is his way of taxing the biggest AI players (think frontier model developers like OpenAI, Google, and Anthropic). It uses the tax code rather than direct regulation to discourage large-scale AI deployment and likely fund worker or social programs.
Last action: Jun 18, 2026
HR 9352
Rep. Steven Horsford (D-NV) introduced this bill to require employers to disclose when AI is used in decisions that affect workers, including hiring, firing, promotions, and job restructuring. It aims to give workers and regulators clearer visibility into how AI is reshaping employment before layoffs or reassignments happen.
Last action: Jun 18, 2026
S 4833
Senator Ed Markey's bill would ban employers from using AI and automated decision systems to make high-stakes employment decisions like hiring, firing, promotions, and discipline without meaningful human oversight. It targets the growing use of algorithmic tools that screen resumes, monitor workers, and rank employee performance. The bill sits in the Senate HELP Committee and would create new federal worker protections around workplace AI.
Last action: Jun 18, 2026