The new administration has reversed prior federal efforts to regulate artificial intelligence (AI) in the workplace, rescinding Biden-era AI policies and prioritizing “AI dominance.” As a result, key guidance documents from the Equal Employment Opportunity Commission (EEOC), the Office of Federal Contract Compliance Programs (OFCCP), and the Department of Labor (DOL) have been removed, eliminating federal recommendations on AI compliance related to anti-discrimination laws, employee monitoring, and worker protections. Despite these removals, employers must remain compliant with existing federal and state employment laws.
Furthermore, the Trump administration issued Executive Order 14179, directing federal agencies to establish a policy aimed at “sustaining and enhancing America’s global AI dominance.” The order requires key regulators to submit an “action plan” to achieve this goal. A White House fact sheet, released on January 23, 2025, reaffirmed the nation’s commitment to AI leadership, positioning it as a top priority. Additionally, the White House Office of Science and Technology Policy (OSTP) has issued a request for information, inviting input from industry leaders, academic institutions, state and local governments, and other stakeholders. Public comments can be submitted via the Federal Register through March 15, 2025. This feedback will play a key role in shaping the AI Action Plan, which aims to strengthen U.S. innovation and leadership in the field.
What This Means for Employers
With federal guidance withdrawn, states are stepping in to regulate AI use in hiring and employment decisions. States such as Colorado and Illinois have introduced AI-specific laws requiring employers to assess and mitigate bias risks, while cities like New York have imposed transparency and audit requirements. Employers must stay informed of evolving laws to avoid compliance risks.
Next Steps for Employers
To navigate this changing landscape, employers should:
- Continue adhering to anti-discrimination laws, including Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA), which still govern AI use in employment decisions.
- Monitor state and local AI regulations, as new laws may introduce stricter compliance requirements.
- Track federal agencies for new AI-related developments under the Trump administration and consider submitting comments before the March 15, 2025, deadline.
- Strengthen AI compliance programs by ensuring human oversight, training, and risk assessments for AI-driven hiring and employment decisions.
By proactively updating AI policies, employers can reduce legal risks and maintain fair and transparent workplace practices.
