New Jersey has no AI-specific hiring statute yet, but its anti-discrimination rules already reach automated hiring tools, and two bills would add bias audits, notices, and impact assessments.
New Jersey has not passed an AI-specific hiring statute, but that doesn't mean AI hiring tools are unregulated. The New Jersey Law Against Discrimination prohibits employment practices that have an unjustified disparate impact on protected groups, regardless of intent. In December 2025 the Division on Civil Rights adopted rules on disparate impact discrimination (N.J.A.C. 13:16) that expressly recognize an automated employment decision tool that screens out applicants based on characteristics associated with a protected class may have a disparate impact.
Assembly Bill 2726, pre-filed for the 2026 session, would require vendors to bias-audit automated employment decision tools before sale and annually after. Employers and employment agencies would have to post audit summaries on their websites, notify candidates at least 10 business days before using a tool, and explain decisions afterward. Penalties for employers would run up to $500 per violation. It would take effect on the first day of the third month after enactment.
The Fair AI Regulations (FAIR) Act would require independent impact assessments before employers use automated employment decision systems or electronic monitoring tools, 60 days' notice to employees, human review of AI-assisted decisions, and appeal rights, with a private right of action. On October 1, 2026, the Senate Labor Committee advanced it 5-0 to the Senate Budget and Appropriations Committee. As written, it would take effect 18 months after enactment.
Last reviewed October 2026. Bill status changes often. This page is general information, not legal advice.
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