Any employer operating in Colorado that uses automated decision-making technology (ADMT) to influence consequential decisions must take specific actions to prevent discrimination caused by the use of such tools. This legislation (Senate Bill 26-189) replaces the guardrails previously in place (Senate Bill 24-205) and will take effect on January 1, 2027.

The actions required of employers include:

• Notifying impacted individuals prior to using the ADMT (posting a prominent public notice that is accessible, including a link or posting that is proximate to the interaction when a decision may occur)
• Offering a notice of adverse outcome within 30 days (including a plain-language description of the tool’s role and instructions for requesting additional details)
• Retaining all records documenting compliance for a minimum of 3 years
• Responding to requests for inaccurate data corrections via meaningful human review and reconsidering the decision to a reasonable extent

This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.