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Your AI hiring tool may already be breaking the law.

Three new laws (with likely more on the way) now regulate any AI system that scores, ranks, or screens job candidates. Penalties of up to $1,500 per violation, per day. Hughes AI Audit is the technical partner that gets you compliant before enforcement catches up.

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If you use AI, algorithms, or automated scoring in hiring, promotions, or workforce decisions — these laws already apply to you. Resume screeners, chatbot interviewers, skills assessments, "culture fit" scorers, and video analysis tools are all covered.

The tool you may not realize you have

An Automated Employment Decision Tool (AEDT) is any AI system that produces a score, ranking, or recommendation used to help make hiring or promotion decisions. If a vendor sells you software that filters resumes, ranks applicants, or scores interviews — and that output influences who moves forward — you are deploying an AEDT. The law doesn't care whether the AI makes the final call. If it substantially assists the decision, it's regulated.

New York City

Local Law 144

Effective since July 2023

Requires an annual independent bias audit, public disclosure of impact ratios by race, sex, and intersectional categories, and 10-day candidate notice before any AEDT is used. Fines up to $1,500 per violation, per day.

Illinois

HB 3773

Effective January 1, 2026

Prohibits AI hiring that discriminates — and specifically bans using zip codes as proxies for race. Requires notice to all employees when AI is used. Covers the full employment lifecycle, not just hiring.

Colorado

SB 24-205

Effective February 1, 2026

Mandates a risk management program aligned with the NIST AI framework, annual impact assessments, human-in-the-loop disclosure, and a right for candidates to appeal AI decisions. AG enforces as a deceptive trade practice.

Federal watch: The January 2026 Executive Order on AI signaled potential federal preemption of state AI hiring laws — but implementing regulations have not yet been finalized. Until formal rulemaking clarifies scope, compliance with all state and local laws remains the only safe path — and documenting your compliance efforts now creates an affirmative defense under Colorado law if federal rules do arrive.

What Hughes AI Audit actually delivers

01
Bias & Proxy Audit

We run the math NYC requires — selection rates, scoring rates, impact ratios by race, sex, and every intersectional combination — with full LaTeX proofs an independent auditor can verify. We also scan your AI's input features for Illinois proxy-variable violations.

02
Public Disclosure Package

We generate the LL144 "Summary of Results" your website needs — complete with intersectional tables, small-sample privacy suppression, Unknown demographic transparency, and a NIST-aligned data integrity statement.

03
Multi-State Notice Engine

One unified candidate notice that satisfies NYC, Illinois, and Colorado simultaneously — including the Colorado human-in-the-loop disclosure, data correction rights, and appeal process your legal team needs documented.

Who partners with Hughes — and why

Employers & HR Leaders

You adopted an AI hiring tool to save time. Now it's a liability. We handle the technical audit work so your team doesn't have to learn statistical testing, impact ratios, or intersectional math. You get audit-ready artifacts and a defensible compliance record.

Legal Teams & Outside Counsel

You understand the exposure but can't legally act on the math. We bridge that gap — producing the quantitative evidence, LaTeX proofs, and regulatory-mapped documentation you need to advise clients or defend against disparate impact claims.

AEDT Vendors & HR Tech Companies

Your clients are asking if your tool is "compliant." We give you a third-party audit package you can hand to every customer — covering NYC, IL, and CO in one engagement. It's a sales accelerator, not just a cost of doing business.

Small & Mid-Size Firms

You don't have a compliance department, but you use Indeed assessments, HireVue, or another screening tool. These laws don't have a small-business exemption (Colorado's is extremely narrow). We make compliance affordable and fast before a complaint arrives.

Hughes AI Audit provides technical compliance auditing services for automated employment decision tools. This document is for informational purposes and does not constitute legal advice. Consult qualified counsel for jurisdiction-specific guidance. © 2026 Hughes AI Audit — www.hughesaudit.ai
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