On October 16, the Department of Labor (DOL) issued comprehensive guidance related to the use of Artificial Intelligence (AI) in the workplace. The guidance, entitled “Artificial Intelligence and Worker Well-being,” acts to serve as guiding principles for employers and developers in the use of AI and ensure parties are “mitigating potential harm to employees and maximizing the potential benefits of AI.”

Due to the unknown nature of how AI will develop and be deployed in the near future, the guidelines provide eight core principles that should govern how AI is used in the workplace. These principles give high-level considerations regarding the use of AI.

DOL Core Principles:

1. Centering Worker Empowerment: “North star” employers and developers should ensure that workers, especially those from underserved communities, are informed of the development, use, and oversight of AI in the workplace. Workers should also have genuine input into the design, development, training, and deployment of AI in the workplace.
2. Ethically Developing AI: Developers should establish standards and implement impact assessments to ensure any deployed AI is operating in the way it was expected and the risk of algorithmic discrimination is mitigated.
3. Establishing AI Governance and Human Oversight: Employers should establish internal structures to oversee AI that is deployed and provide appropriate training about AI to a broad range of employees from executives to front line workers. Employers should also use AI to support decision making and not use AI as the sole decision regarding employment decisions.
4. Ensuring Transparency in AI Use: Employers should provide employees and applicants information regarding AI systems being used, the data being collected, and the impact of the use of AI on employment decisions.
5. Protecting Labor and Employment Rights: Employers should monitor AI systems to ensure they do not violate or undermine workers’ rights regarding health and safety, wage and hour protections, and their right to organize or engage in protected activity under the National Labor Relations Act.
6. Using AI to Enable Workers: Employers should consider how AI systems will impact employees and adopt only systems that enhance job quality for all employees. Employers who deploy electronic monitoring should use the least invasive means necessary.
7. Supporting Workers Impacted by AI: Employers should provide employees with training opportunities to learn new AI systems and attempt to mitigate job loss due to AI by retraining and reallocating employees displaced by AI.
8. Ensuring Responsible Use of Worker Data: Employers should only collect employee data necessary for a legitimate and defined business purpose. Any data collected should be protected from internal and external threats, and employee data should not be shared outside the organization.

While this guidance is not binding, it may be indicative of how the development and deployment of AI may be regulated by the DOL in the future. Colorado recently passed its own law regulating the use of AI in a wide variety of contexts, including employment, housing, banking, and education. This law goes into effect in February of 2026 and echoes many points in the DOL guidance, requiring those who develop and deploy AI to monitor the systems to prevent algorithmic discrimination.

Sherman & Howard will continue to monitor developments at both the federal and state levels and assist clients in implementing systems and policies to ensure compliance with future laws and regulations.