North Carolina: Fair AI Hiring Act (HB 1161)

North CarolinaLegislationNot in force

North Carolina House Bill 1161 introduces Chapter 95A to the General Statutes, designated as the North Carolina Fair AI Hiring Act (NC-FAIHA), regulating the use of automated employment decision tools (AEDTs) by public and private employers and employment agencies in North Carolina. The statute covers covered employment decisions, defined as decisions to hire an individual for or promote an employee to a position within the state, including remote positions performed primarily by North Carolina residents. It prohibits deployers from using an AEDT unless the tool has undergone an independent bias audit within the preceding 12 months, a summary of the audit results is published on the deployer's public website within 30 days of completion, and advance written notice is provided to candidates at least 10 business days prior to evaluation. Additionally, the bill provides applicants and employees with the right to request an alternative evaluation process that does not rely on the AEDT.

Impact

What this means for HR and vendors

HR and recruitment teams

HR and talent acquisition teams operating in North Carolina must implement strict audit, transparency, and opt-out workflows prior to deploying automated screening tools for hiring or internal promotions. Organizations must ensure that any deployed AEDT undergoes an independent bias audit every 12 months and that audit summaries are published on their career websites. HR teams must also build processes to deliver written notices to candidates at least 10 business days prior to AEDT evaluation and accommodate timely candidate requests for alternative, non-automated evaluation processes.

HR technology vendors

HR technology providers supplying automated decision tools to North Carolina employers will face commercial expectations to support deployer compliance. Although direct statutory penalties apply primarily to deployers, vendors must supply system access, data, and technical documentation required to complete independent bias audits. Vendors must also assist deployers by providing clear descriptions of evaluated criteria and model logic to enable compliant pre-use candidate notices, and ensure tools allow candidates to be evaluated via alternative, non-automated workflows when requested.

Key obligations

What organizations need to do

Practical obligation briefings focused on what the requirement is, who it applies to, when it applies and what teams should consider doing.

DeployerBias Audit & Testing

State Government Contractor Compliance Certification

OBLIGATION

APPLIES TO

STATUS

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Not legal advice

This page is regulatory intelligence only. Organizations should seek guidance from legal counsel before making compliance decisions.

Employment-focused extraction

This may be part of wider regulation. The Warden Watch extracts and displays the parts relevant to employment, HR and recruitment decision-making.

HR and recruitment teams

HR technology vendors

Annual Independent Bias Audit Requirement

Public Disclosure of Bias Audit Summaries

Advance Written Notice to Applicants and Employees

Alternative Selection Process and Opt-Out Accommodations

State Government Contractor Compliance Certification

Stay ahead of AI hiring compliance before it lands.

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