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
HR 9285
Rep. Michael Lawler (R-NY) wants HHS to launch an AI-powered surveillance program that tracks heat-related illnesses across the country and predicts outbreaks before they happen. The bill creates a federal monitoring system, not new rules for private businesses, so it's primarily a government technology initiative rather than a regulatory burden.
Last action: Jun 11, 2026
S 4774
Senator Jeff Merkley (D-OR) introduced this bill to ban distribution of materially deceptive AI-generated audio, video, or images of federal candidates within 60 days of an election. It also blocks states from purging voters based on unverified third-party challenge databases (like those used by some activist groups). Violators could face civil penalties and lawsuits from candidates targeted by deepfakes.
Last action: Jun 11, 2026
S 4742
Senator Mark Kelly (D-AZ) introduced this bill to authorize federal labor market data collection focused on how AI is reshaping the American workforce. It directs federal agencies to measure AI's impact on jobs, wages, and worker displacement, but does not impose any compliance requirements on private businesses.
Last action: Jun 10, 2026
HR 9125
Rep. Sara Jacobs (D-CA) introduced the Sectoral AI Governance Act of 2026, which would assign AI oversight to existing federal agencies based on the sector where AI is used (think FDA for medical AI, EEOC for hiring AI) rather than creating one new mega-regulator. The bill is sitting in the House Judiciary and Oversight Committees, so nothing is law yet, but it signals where federal AI rules are heading.
Last action: Jun 3, 2026
S 4476
Senator Mark Warner's bill creates a voluntary framework for AI developers and companies using AI to share data about how AI is affecting their workforce (think hiring, firing, task automation, and skill shifts). The Secretary of Labor would then compile and report this data to Congress and the public. Nothing here is mandatory, it's an opt-in disclosure program.
Last action: Apr 30, 2026
S 3952
Senator Peters introduced a bill that would create new compliance requirements for companies using AI in high-stakes decisions like hiring, lending, healthcare, and criminal justice. Companies would need to conduct annual bias audits, implement human oversight systems, and publicly disclose when AI makes decisions affecting people's lives.
Last action: Feb 26, 2026