The future of work includes AI—and a lot of legal questions
How to keep your company compliant, your team protected, and your policies ahead of the curve.
Artificial intelligence is no longer theoretical—it’s integrated into hiring platforms, productivity tools, and performance evaluations. And while AI promises efficiency and innovation, it’s also raising serious questions about privacy, fairness, and legal risk. A recent Fast Company article offered a critical reminder: as AI moves into the workplace, human rights and employee protections must remain front and center.
Why people still matter most
The legal risks of AI are real. But there’s also a cultural and ethical risk: losing the human element of work. AI can recommend who to hire, track productivity down to the second, and even evaluate tone in emails—but it can’t replace empathy, context, or fairness. The Fast Company piece emphasizes that worker autonomy, dignity, and transparency must be protected. That means:
Being clear about when and how AI is used
Involving employees in decision-making
Keeping humans in the loop—especially when decisions affect jobs, pay, or performance
Workplaces that center people—not just performance—are not only more ethical and legally sound—they’re more resilient. And it matters. A follow-up Fast Company report found that 31% of employees—and 41% of Gen Z—are actively resisting or undermining AI at work. When tech feels invasive or unfair, trust breaks down.
Legal risk: you’re still responsible
AI may handle tasks, but it doesn’t remove employer responsibility. If an algorithm used in hiring, promotion, or performance leads to discrimination—intentionally or not—the liability remains with the employer.
The EEOC and Department of Labor have made it clear: automated decisions do not exempt employers from compliance with civil rights laws, including Title VII, the ADA, and the ADEA. If an AI tool disproportionately screens out older applicants, flags neurodivergent behavior as a “red flag,” or penalizes workers requesting accommodations, the employer is still accountable.
Surveillance, privacy, and policy gaps
AI tools that monitor facial expressions on Zoom calls, track keystrokes, or analyze chat messages for “sentiment” may seem cutting-edge—but they also risk violating privacy laws and employee rights.
Under the California Consumer Privacy Act (CCPA), employees now have the right to know how their personal data is being collected and used. Other states, including Washington and New York, are proposing similar protections. Businesses need to prepare for a future where employee data governance is as important as customer data compliance.
What employers should do now
You don’t need to avoid AI—you need to use it responsibly. Here’s where to start:
1. Legally audit your AI toolsEvaluate what the tools do, how they’re trained, and whether they’ve been tested for bias. If they’re involved in hiring, evaluation, or termination decisions, they must comply with anti-discrimination laws.
2. Update your handbooks and internal policiesClearly document what AI systems are in place, how they’re used, and what employees can expect. Include this in onboarding, handbook updates, and manager training.
3. Watch for new legislationStates like Colorado are leading with comprehensive AI laws (effective 2026), requiring companies to use “reasonable care” to avoid algorithmic discrimination. New York is considering laws that require AI impact assessments and fees for workforce displacement. California is pushing for accountability in advanced AI systems. These will shape what federal laws look like—and your policies should evolve now.
Teach is the tool—people are the point
The future of work includes AI—but it also includes people. And people deserve transparency, fairness, and protection—regardless of whether a decision comes from a manager or a machine.
At Stockwell Law Firm, we help employers embrace innovation without compromising compliance or integrity. From AI policy audits to employee handbook updates, we’ll help you get ahead of the risks—and lead with clarity.
Ready to review your policies and tools? We’re here to help you future-proof your workplace.
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