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Yes. An employer may use AI to influence or decide who is fired or laid off. But using AI does not remove the legal protections that apply to employment decisions. Whether a particular termination is unlawful depends on what the system did, how the employer used it, the evidence, and the laws covering the worker and location.
This guide focuses on the United States, with examples from New York City and Colorado. It is general information, not a legal determination about an individual case.
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What does it mean for AI to be used in a firing?
AI may be involved at different points in an employment decision. A system could monitor or score work, recommend a termination, help select employees for a layoff, or make a decision. The U.S. Equal Employment Opportunity Commission (EEOC) expressly includes AI “influencing or deciding who will be let go” in its worker guidance, Employment Discrimination and AI for Workers (April 29, 2024). That establishes that the agency considers this a possible use of AI; it does not mean every employer uses AI this way.
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Does using AI make a termination illegal, or protect the employer from a claim?
Neither conclusion follows automatically. The EEOC says existing federal employment discrimination laws apply when employers use AI. Its worker guidance identifies protections related to race, color, religion, sex (including gender, sexual orientation, and pregnancy), national origin, age 40 or older, disability, and genetic information.
An inaccurate, unfair, or troubling algorithmic result by itself does not establish a legal violation. The facts and applicable law matter, including how the system was designed and used and whether the decision affected a worker on a legally protected basis. Nor does using a vendor’s software, by itself, answer whether an employer is responsible for a particular outcome. The EEOC’s baseline is that it enforces federal laws prohibiting employment discrimination; a specific claim requires a fact-specific assessment.
What if an AI productivity measure disadvantages a worker with a disability?
A measurement method can be a problem if it screens out an employee who can do the job with or without reasonable accommodation. In its guidance Visual Disabilities in the Workplace and the Americans with Disabilities Act, question 16, the EEOC describes a blind employee who receives a poor rating from an algorithm measuring keystrokes per minute because the employee uses voice recognition. The agency says an employer should provide a reasonable accommodation when required, absent undue hardship; an alternative, accurate way to measure the employee’s ability may be appropriate.
If an assessment or monitoring method does not accurately reflect how you perform your work, you can consider asking for a reasonable accommodation or an alternative assessment method. The guidance does not guarantee a particular accommodation in every situation, but it does make clear that an AI-based measure does not displace applicable accommodation obligations.
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What special rules apply in New York City?
New York City Local Law 144 covers certain automated employment decision tools (AEDTs) that substantially assist or replace discretionary employment decision-making. For a covered use in NYC, the city requires a bias audit before use, along with specified notices and public audit information. The city’s FAQ describes covered employment decisions broadly, including screening at points in hiring or promotion. This is a local requirement, not a nationwide audit mandate, and it should not be assumed to cover every tool used in a termination.
The NYC Department of Consumer and Worker Protection’s FAQ also says the audit law does not itself dictate what employers must do based on audit results. Other anti-discrimination laws remain relevant. A worker who suspects that a covered tool was used without a required audit, audit summary, or notice can use the complaint route described by NYC311. The city’s complaint information asks for details such as the suspected violation date, an explanation, the job posting or position, the tool name or type if known, and any notice provided.
What is changing in Colorado?
Colorado’s rules are changing, so the date of a decision matters. The Colorado Attorney General’s information, current as of October 7, 2026, says Senate Bill 26-189 was signed in May 2026 and repeals and reenacts the state’s automated decision-making provisions with new requirements. The law is scheduled to take effect on January 1, 2027, and rulemaking was still underway as of that date. Do not treat the new provisions as effective before their stated start date, or treat rules still under development as settled requirements.
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How should workers understand the federal disparate-impact debate?
Federal law remains central to employment discrimination questions, but the federal executive-branch position shifted in 2026. On June 9, 2026, the Justice Department’s Office of Legal Counsel (OLC) issued an opinion arguing that the EEOC’s Title VII disparate-impact guidelines are unconstitutional and setting out a narrower liability framework. The Justice Department’s accompanying press release summarizes the administration’s position.
This is an OLC opinion and executive-branch position, not a court judgment or a definitive resolution of how every court will apply Title VII. It does not establish that AI discrimination is categorically lawful, and it does not eliminate other statutory protections. Because this area is changing, workers should check for later court or agency developments that may affect their situation.
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What can you do if you think AI affected your termination?
- Preserve relevant records. Keep the termination notice, stated reasons, performance records, applicable policies, communications, accommodation requests and responses, and any notice indicating an automated system was used. These are practical records to retain, not a list of items every employer is legally required to provide.
- Ask how the decision was made. You can ask what system or criteria affected the decision and whether a human decision-maker reviewed it. The sources discussed here do not establish a general nationwide right to receive the model, its source code, or a complete explanation of its decision.
- Raise an accommodation issue if relevant. If a disability-related assessment or monitoring method may not accurately measure your work, consider requesting a reasonable accommodation or another assessment method. Whether a particular accommodation is required depends on the circumstances.
- Contact the right agency promptly. The EEOC accepts discrimination inquiries through its Public Portal and lists phone contact options in its worker guidance. For an NYC AEDT complaint involving a suspected missing audit or notice, consult the city’s NYC311 complaint route. Deadlines, filing paths, and available remedies vary by claim and location, so verify them promptly.
- Consider individualized advice. An employment lawyer or worker-rights organization can assess the facts, location, and laws that apply, particularly when rules are changing.
Which facts are most important to sort out?
| Question | Why it matters |
|---|---|
| What did the AI do? | Monitoring, scoring, recommending termination, selecting workers for a layoff, and making the final decision are different roles to clarify. |
| What legal issue may be involved? | Potential issues include discrimination based on a protected characteristic, disability accommodation, or a local AEDT audit or notice obligation. |
| Where and when did the decision happen? | Applicable state and local rules differ. In Colorado, the new provisions described by the Attorney General are scheduled to begin January 1, 2027; NYC has its own AEDT requirements. |
| What records exist? | Termination reasons, performance records, notices, accommodation communications, and information about the system’s role can help clarify what happened. |
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