Colorado Rewrote Its AI Law. What SB 26-189 Means for Hiring From January 2027
Prices and facts checked October 13, 2026. We don't accept payment for rankings.
On this page
What happened: on May 14, 2026, Colorado Governor Jared Polis signed SB 26-189, which repeals the state's 2024 AI Act (SB 24-205) and re-enacts a narrower law built around automated decision-making technology (ADMT) (Colorado General Assembly). The main obligations start January 1, 2027 (McDermott Will & Schulz, May 27, 2026).
Why it matters today: employment decisions are explicitly covered. If you use AI to screen, score or rank candidates for Colorado roles, you have under three months to build notice, explanation and human-review steps.
Not legal advice. The Colorado Attorney General must issue rules by January 1, 2027, which may change the details. Check them before relying on this summary.
How Colorado got here
| Date | Step |
|---|---|
| May 2024 | SB 24-205, the first comprehensive state AI law, set for Feb 1, 2026 |
| Aug 28, 2025 | Special session delays it to Jun 30, 2026 (Greenberg Traurig) |
| Apr 9, 2026 | xAI sues to block the law; the DOJ files a companion complaint Apr 24 |
| Apr 27, 2026 | Stipulated federal court order pauses enforcement of SB 24-205 |
| May 14, 2026 | SB 26-189 signed: repeal and replace |
| Jan 1, 2027 | New ADMT obligations begin |
Sources: McDermott; Clark Hill.
What the new law covers
- ADMT: technology that processes personal data to produce predictions, scores or recommendations that help make a decision about an individual.
- Consequential decisions: include access to employment, plus education, housing, lending, insurance, health care and government services.
Source: Colorado General Assembly.
What employers (deployers) must do
| Duty | What it means for hiring |
|---|---|
| Notice at the point of interaction | Tell candidates when covered ADMT is used, for example on the application page |
| Explanation within 30 days | After an adverse decision, such as a rejection, give a plain-language description of the ADMT's role |
| Data access and correction | Candidates can request the personal data used and correct factual errors |
| Human review | Candidates can request meaningful human review and reconsideration of an adverse decision |
| Records | Keep compliance records for at least 3 years |
Source: Colorado General Assembly.
Vendors (developers) must give deployers documentation on intended uses, training data categories, known limitations and guidance on human review, and notify them of material updates.
What was dropped from the 2024 law
The replacement removes impact assessments, filings with the Attorney General, the broad duty to prevent algorithmic discrimination, and the general requirement to disclose any AI interaction (McDermott). It also replaces audit-style mandates with transparency duties and allocates liability between developers and deployers by relative fault (Gunderson Dettmer).
Enforcement
The Attorney General enforces it as a deceptive trade practice. There's no new private right of action. Until January 1, 2030, the AG must give 60 days' notice and a chance to cure before suing (Colorado General Assembly).
A recruiter's checklist for January 2027
- Find out which tools score or rank Colorado candidates, including ATS features.
- Get vendor documentation now. Developers owe it to you.
- Add an AI notice to Colorado job postings or application flows.
- Draft a rejection explanation template describing the tool's role in plain language.
- Set up a human-review request path, with an owner and response time.
- Keep records for three years.
Compare with other jurisdictions: NYC, Illinois and Colorado and California.
FAQ
Do I still need a bias audit or impact assessment in Colorado?
Not under SB 26-189. NYC still requires bias audits for automated employment decision tools.
Can candidates sue under the Colorado law?
There's no new private right of action. Candidates can still bring discrimination claims under existing law.
Does it apply to out-of-state recruiters?
It focuses on decisions about Colorado consumers. If you hire for Colorado roles or candidates, assume it applies and confirm with counsel.
Sources
Pages we used for this article, checked on or before the update date above.
- Colorado General Assembly · leg.colorado.gov
- McDermott Will & Schulz, May 27, 2026 · mcdermottlaw.com
- Greenberg Traurig · gtlaw.com
- Clark Hill · clarkhill.com
- Alexandra Tran · unsplash.com
- Gunderson Dettmer · gunder.com
Changelog: Oct 13, 2026: first published.