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Artificial Intelligence Laws

Navigating the Evolving Landscape of AI Laws: Compliance

AI regulations are continuously evolving, making it challenging for companies, particularly in employment contexts. At TCWGlobal, we recognize the complexities of these ever-changing laws and are dedicated to guiding our clients through them. With our expertise, we help your business adopt AI solutions responsibly while managing the employment processes for your contingent workforce.
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United States 

Law

Utah AI Policy Act

NYC Local Law 144

 Maryland HB 1202: Facial Recognition Law

Effective Date 

 1-May-24 5-Jul-23 1-Oct-20
Scope 
 Companies deploying GenAI tools, classified as either "regulated occupations" or those outside of regulated businesses. Employers and employment agencies using AEDTs to evaluate candidates for employment or employees for promotion that reside in New York City.  Employers who use facial recognition during hiring. 
Opt-out Options
 The law does not currently provide a direct "Opt-out" option for users to completely avoid AI interactions, but the disclosure requirement allows users to make informed decisions based on their awareness of interacting with an AI.  All applicants to a New York City job posting have the opportunity during the job application to opt out of the use of AEDTs.  All applicants to a New York City job posting may opt-out/not provide consent to use certain facial recognition technologies during an interview. 
Accommodations
 Disclosure requirement allows users to make informed decisions based on their awareness of interacting with an AI.  Companies must provide affected individuals with disabilities under ADA protections a way to request accommodation or alternative selection process upon request. Non-ADA based requests for an alternative selection process are not required to be granted by Companies in this Law.  Applicants who refuse to sign a waiver consenting to use of facial recognition technologies are to be interviewed without those technologies. 
Private Right of Action

No

 Yes Not specified 
Penalties

Violators could face an administrative fine of up to 2,500 USD and a civil penalty up to 5,000 USD.

 Penalties for non-compliance are a $500 fine for the first violation and $1,500 fines for subsequent violations.  No specific fines or penalties are mentioned. 
 
 
 
Law

Portland's Facial Recognition Ban

Illinois AI Video Interview Act (AIVIA)

Illinois HB 3773: AI Anti-Discrimination Amendment to Human Rights Act

Effective Date 

 1-Jan-21 1-Jan-20 1-Jan-26
Scope 
 Private entities in places of public accommodations  Employers who use AI to analyze video interviews of job applicants for positions based in Illinois.  Employers that use AI for employment decisions for anybody based in the state of Illinois. 
Opt-out Options
 None, it is a ban. Allows applicants of a job to opt-out of video interviews. No opt-out option required from employers. 
Accommodations
 None. While applicants may opt-out, a replacement format for alternative interviewing isn't specified in under the law, leaving room for employers to write off such individuals. Individuals may ask for their recordings to be destroyed.  None Specified. 
Private Right of Action

Yes

 Not specified. Yes
Penalties

Individuals can sue a private entity in any court of competent jurisdiction for damages sustained as a result of the violation or $1,000 per day for each day of the violation, whichever is greater and such other remedies may be appropriate. 

 The Act does not specify what types of remedies are available, nor quantify available damages. No specific fines or penalties are mentioned. Failure to meet the requirements of this bill is considered a civil rights violations. 

 

 

Law
 California SB 942: California's AI Transparency Act

Colorado's SB 24-205: AI Act

Effective Date 

 1-Jan-26 1-Feb-26
Scope 
 "Covered providers," meaning a person that creates, codes, or produces a GenAI system that has over one million monthly visitors and is publicly accessible within CA. Also, applies to third party deployers in that they must abide by downstream contractual obligations.  Developers and deployers of high-risk AI systems used by consumers or workers in Colorado. 
Opt-out Options
 Covered providers will not collect or retain personal information of users that submit feedback on the AI system unless the user opts in to being contacted by the provider for feedback purposes.  Consumers are to be informed of their right to opt out of having their personal data processed by AI systems that make consequential decisions or from being profiled by these systems. 
Accommodations
 None specified.  None Specified. 
Private Right of Action

No

 No
Penalties

If a covered provider revokes the license it granted to a third party licensee for failure to maintain latent disclosures and the licensee continues to use the AI system, the licensee may be responsible not just for breach but subject directly to civil actions brought by government prosecutors. For covered providers, $5,000 per violation, with each day in violation deemed a separate violation. 

 Violations of the Act are deemed to be unfair trade practice under the Colorado Consumer Protection Act, with penalties up to $20,000 per violation. 

 

Canada 

 

Law
 Bill 64: Quebec Privacy Law 

Bill 149 : Ontario Working for Workers Four Act (AI disclosures in job postings requirement specifically) 

Effective Date 

 Spread out from 22-Sep-22 to 22-Sep-24 1-Jan-26
Scope 
 Businesses headquartered in Quebec (protects their consumers and workers) as well as businesses whose website has visitors from Quebec.  Companies with 25 or more workers 
Opt-out Options
 Individuals can opt-out of being profiled by businesses that use algorithms or other technology.  No opt-out option required form employers. 
Accommodations
  • Every person carrying on an enterprise who holds personal information on another person must at the request of the person concerned, confirm the existence of personal information, communicate it to the person and allow him to obtain a copy of it.
  • At the applicant’s request, computerized personal information must be communicated in the form of a written and intelligible transcript.
  • If the person concerned is handicapped, reasonable accommodation must be provided on request to enable the person to exercise the right of access provided for in this division.
 None Specified. 
Private Right of Action

Yes

 The Act does not explicitly establish a private right of action. However, individuals can seek judicial redress if the government does not investigate a complaint. 
Penalties
  • Administrative penalties: up to CAD 10,000,000 or 2% of worldwide turnover for the preceding fiscal year, whichever is greater. 
  • Criminal penalties: up to CAD 25,000,000 or 4% of worldwide turnover for the preceding fiscal year, whichever is greater. Fines will be doubled in the event of a subsequent offense. 
 The maximum fine for individuals who violate the Employment Standards Act (ESA) or who fail to comply with a related order or direction is $100,000. 

 

European Union

 

Law
 EU AI Act 

Effective Date 

 1-Aug-24
Scope 
 Providers and deployers of AI systems used within the European Union, even if they are developed outside of the European Union. 
Opt-out Options
 No opt-out option for deployers and users. 
Accommodations
 None Specified. 
Private Right of Action

No
Penalties
  • Noncompliance with banned AI practices is subject to fines up to €35,000,000 or up to 7% of the company’s total global annual turnover, whichever is higher.
  • Noncompliance with other provisions of the Act is subject to fines of up to €15,000,000 or up to 3% of total global annual turnover, whichever is higher.
  • Providing inaccurate, incomplete, or misleading information to relevant authorities as necessary is subject to a fine of up to €7,500,000 or 1% of global annual turnover, whichever is higher.

 

 

 

 

 

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