As artificial intelligence (AI) continues to reshape the workplace, Virginia has taken a proactive step in regulating its use through the High-Risk Artificial Intelligence Developer and Deployer Act. If signed into law, this legislation—effective July 1, 2026—aims to prevent algorithmic discrimination and enhance transparency in employment, finance, housing, and other key areas where AI influences decision-making. Notably, Virginia’s law would apply only when AI serves as the principal basis for such decisions.
Employers utilizing AI-driven hiring, promotion, or evaluation tools must conduct a risk assessment, establish a risk management policy to mitigate biases, and perform impact assessments before deploying high-risk AI systems. Transparency is a key component of compliance, requiring businesses to inform individuals when AI is used to make significant employment-related decisions.
The law grants enforcement authority to the Attorney General, with penalties for non-compliance reaching up to $10,000 per violation. However, it does not grant a private right of action to applicants or employees.
Next Steps for Employers
To stay ahead, businesses should begin evaluating their AI systems now to ensure alignment with anti-discrimination laws and best practices in ethical AI deployment. The bill specifically references the U.S. Department of Commerce’s National Institute of Standards and Technology Framework for best practices.
Multistate employers should also be aware of any obligations under other state and local laws, such as those in California, Colorado, and New York City. By taking proactive steps today, employers can reduce legal risks and foster a fair, compliant workplace.
