Yes, an employer can use an algorithm when making a firing decision, but that does not automatically make the firing legal—or illegal. The answer depends on the law where you work, what the tool did, and how the employer used its output. U.S. law does not establish a single nationwide rule that permits or prohibits every algorithm-assisted firing.
What matters when an algorithm contributes to a firing?
The word “algorithm” is not itself a legal test. The important questions are what employment decision the tool influenced, how much the employer relied on it, and whether that use violated a law that applies to the worker and employer.
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Discrimination rules can apply to employment procedures that use software. Title VII, a federal law, addresses discriminatory employment practices and includes requirements for professionally developed ability tests: a test and its administration or use must not be designed, intended, or used to discriminate on protected grounds. That does not mean every algorithm is legally an ability test, nor does it determine whether a particular firing violated the law.
New York City Commission on Human Rights guidance makes the accountability point directly: “Covered entities are responsible for the actions and decision-making of AI systems and other technology they utilize, and they may not avoid liability for unlawful discrimination by asserting that the discrimination was caused by technology or AI rather than human decision-making.” The guidance also says that failure to accommodate a disability in a technology-assisted employment process can raise discrimination concerns.
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What do the rules in New York City and Colorado cover?
These examples show why location and the type of decision matter. They are not a complete survey of state and local law.
| Jurisdiction | Employment decisions covered in the cited rule | Status and key requirements |
|---|---|---|
| New York City | Local Law 144 addresses covered automated employment decision tools used to screen candidates for employment or employees for promotion. Its defined scope should not be treated as a general rule about firing. | The law took effect January 1, 2023; enforcement by the Department of Consumer and Worker Protection began July 5, 2023. A covered tool must have an independent bias audit no more than one year before use, and the employer or agency must post a summary before use. Covered candidates and employees who reside in the city must receive notice at least ten business days before use. The notice must identify the tool’s use and the qualifications and characteristics it assesses, and explain the opportunity to request an alternative selection process or accommodation. |
| Colorado | SB 26-189 covers automated decision-making technology materially influencing consequential decisions, including employment. | Enacted but not yet in effect as of October 4, 2026. Its provisions take effect January 1, 2027. The Colorado Attorney General is in rulemaking. |
New York City: audit and notice requirements are not a general firing law
Section 20-871 of the New York City Administrative Code says: “In the city, it shall be unlawful for an employer or an employment agency to use an automated employment decision tool to screen a candidate or employee for an employment decision unless” the requirements that follow are met. The code defines the relevant employment decision as screening for a job or screening an employee for promotion. That defined scope is why Local Law 144 should not be described as a general prohibition or permission for algorithm-based terminations.
If data-type, data-source, and data-retention information is not already posted, the code provides for making it available on request, subject to legal exceptions. Separately, the NYC Commission on Human Rights guidance addresses responsibility for discriminatory effects and disability accommodation; do not confuse that guidance with Local Law 144’s narrower screening definition.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteThe NYC Department of Consumer and Worker Protection says a person can complain if an employer or employment agency used an automated employment decision tool but failed to conduct the required audit, post its summary, or give required notice. The agency states that enforcement began July 5, 2023.
Colorado: enacted, with a future effective date
Colorado SB 26-189 concerns automated decision-making technology that processes personal data and uses computation to generate output used to make, guide, or assist an individual decision. The state’s summary includes employment among consequential decisions. As of October 4, 2026, the law has been enacted but its new provisions have not taken effect; the effective date is January 1, 2027.
Can AI get you fired for a discriminatory reason?
Software involvement does not erase the employer’s responsibility for a decision. If the way a tool is designed or used contributes to unlawful discrimination, the fact that an algorithm produced or shaped the result does not by itself shield the employer. But an adverse outcome, or the mere use of AI, does not alone prove that discrimination occurred. The relevant facts and applicable law matter.
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What should you do if you think an algorithm influenced your firing?
- Identify the location and decision. Note where you worked, where you reside, who employed you, and whether the disputed decision was termination, hiring, promotion, or something else. These details affect which rules may apply.
- Preserve the record. Keep the termination notice, performance reviews, relevant messages, policies, and any explanation you received about automated tools or decision-making. Record dates and the names of people involved while events are fresh.
- Ask what role the tool played. If appropriate, request a written explanation of the reason for the decision and whether an automated system contributed. In New York City, a covered person may also have notice or information rights under Local Law 144, depending on the tool and decision involved.
- Get advice promptly. Consult a qualified employment lawyer or the relevant labor or civil-rights agency in your jurisdiction. The sources described here do not determine a particular worker’s filing deadline, available remedy, or rights under contract, union, civil-service, whistleblower, retaliation, privacy, or other laws.
Does an algorithm-assisted firing automatically violate the law?
No. The tool’s involvement alone does not settle legality. The decision can raise legal concerns if the employer’s use of it violated a law that applies, but assessing a specific case requires the worker’s location, the decision process, and the surrounding facts.
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