Human Resources News & Trends from HRCG

Connecticut Workforce Development Bill: CT Labor Law Updates for 2026

Written by The Human Resource Consulting Group | Jun 29, 2026 1:00:00 PM

On May 11, 2026, Governor Ned Lamont signed into law House Bill 5003 - Public Act No. 26-12 (Connecticut’s Workforce Development Bill), an omnibus legislation aimed to expand employee rights, and Public Act No. 26-15 (Connecticut Artificial Intelligence Responsibility and Transparency Act), legislation aimed to limit certain usage of AI tools in the hiring process.Both laws will officially be in effect starting October 1, 2026, meaning that all Connecticut employers must not only be aware of the array of labor law updates but must also be prepared to update company policies and compliance efforts to mirror the new requirements by the effective date.

To help summarize the sweeping updates made to Connecticut’s labor laws, this article will highlight the latest laws and requirements employers must know before October 1, 2026, as well as a checklist to help stay organized. Here’s everything you need to know.

Connecticut’s Workforce Development Bill (Public Act 26-12)

The Workforce Development Bill comprises 75 sections of legislation that generally go into effect on October 1, 2026. Many of these regulations added increased employee protections, expanded employee accommodations, and restricted certain hiring practices.

Below are the standout updates made to Connecticut’s labor laws:

Connecticut Pay Transparency Laws Expanded

Since October 1, 2021, the Connecticut Pay Transparency Law requires employers with at least one employee to provide pay ranges on job listings.

With the latest updates from the Workforce Development Bill, employers are now also required to include full compensation information on job listings, such as employee benefits including health insurance, retirement, and other fringe perks. Employers must disclose the entire compensation package for the role before any direct discussion occurs with the employer and before an offer is made.

Additionally, employers found to have violated the Connecticut Pay Transparency law will no longer receive punitive damages. However, the window for employees to file a complaint is increased to two years. Note that the regulation change does not affect compensatory damages, attorney’s fees, and other legal fees that may be furnished to an employer who violated the law.

"Stay or Pay" Contracts Prohibited

Employers requiring employees to sign promissory notes stating that they must reimburse their employer for training costs if they leave before a certain date will now be prohibited. This regulation is referred to as the “Stay or Pay Law”, preventing employers from requiring repayment contracts to be a condition of employment.

The Connecticut Stay or Pay law will apply to all employers with workers in the state for all contracts made on or after October 1, 2026.

Some minor exceptions that allow employers to collect reimbursement for certain expenses may apply, including:

  • Cash advances
  • Union contract payments
  • Payment for company property (tools, equipment, uniforms, etc.)
  • Sabbatical leave

Lactation Laws in the Workplace Expanded

Since October 1, 2021,  the Pregnant Workers Fairness Act (PWFA) updated the employer accommodation requirements for lactating employees and reinforced meal break requirements for employees to express milk in the workplace when needed.

Under the Workforce Development Bill, employers must now allow additional breaks on top of their regularly scheduled meal break if needed.

Employer requirements for accommodating lactating employees now include:

  • Provide a room for employees to express milk in private, other than a bathroom
  • Have close access to an outlet and a refrigerator
  • Allow lactating employees to express milk during their meal break, and allow for any additional breaks within reason

ADA Notice Requirements

The Americans with Disabilities Act (ADA), a federal law, doesn’t currently require employers to outline available accommodations to employees upon hire. However, Connecticut employers will now need to provide written notices explaining their rights to reasonable workplace accommodations for disabilities under the ADA.

Starting on and after October 1, 2026, employers will need to give employees notice by the following deadlines:

  • Existing employees: 120 days
  • Employees claiming a disability: 10 days
  • New hires: Start of employment

While businesses are required to post the EEOC “Know Your Rights” Poster to stay compliant with the ADA federal regulations, employers will need to have a poster that outlines the added accommodations as part of the new notice requirement.

Additional CT Labor Law Updates

Because the Workforce Development Bill contains several sections of labor law updates, some of the smaller updates are listed below. Note that these regulations also go into effect on October 1, 2026, unless otherwise mentioned: 

  • General contractor liability: Effective January 1, 2027, general contractors can be jointly responsible with subcontractors for failure to pay wages
  • Cannabis employee minimum wage: Tips will no longer be counted as part of a cannabis worker’s (dispensary, producer, or retailer) minimum wage
  • Paycheck transparency requirements: Employers with 100 or more employees must create and maintain a guide for the pay codes used for overtime and pay differentials (on-call pay, hazard pay, holiday pay, etc.)
  • Successor employer worker retention: Businesses that take over service contracts or covered properties must maintain the existing workers through the transitional period (janitors, security, facilities, etc.)
  • Workers’ compensation for assaulted workers: Teachers and healthcare providers must recieve 100% of their average weekly earnings when assaulted on the job

Connecticut Artificial Intelligence Responsibility and Transparency Act (Public Act 26-15)

The Connecticut Artificial Intelligence Responsibility and Transparency Act (CART) was also signed into law in an effort to limit AI tools used in the hiring process.

Specifically, using AI tools for the following can be considered unlawful discrimination:

  • Screen resumes
  • Rank candidates
  • Schedule shifts
  • Evaluate performance

Employers are expected to use AI tools with “reasonable care” before deploying them, which includes giving candidates notice when they are being used, allowing them a chance to appeal employer usage.

Effective October 1, 2026, disclosures related to the federal WARN Act must also include whether or not mass layoffs were due to AI or other related technological changes.

Effective October 1, 2027, employers are required to disclose to candidates the following information if the employer uses AI tools to help with hiring decisions:

  • A statement saying the employer has deployed AI tools
  • The purpose of AI tools in relation to the hiring decision
  • The trade name of the tools used
  • Personal data assessed by AI tools and how the data is assessed
  • Sources of personal data used
  • Contact information of the employer

Note that AI tools may also not be used to modify or undermine collective bargaining agreements.

CT Labor Law Compliance Checklist

With a staggering amount of labor law updates all at once, it’s essential for Connecticut employers to stay prepared ahead of the first major deadline on October 1, 2026, with the following items: 

  • Rebuild your job posting templates: Ensure to include space for both wage range and a benefits summary to stay compliant when creating job ads that attract talent
  • Audit employee contracts: Remove any “stay or pay” agreements from employment contracts
  • Update policy to accommodate lactation breaks: Reinforce meal break usage and additional break times if requested
  • Update posters and notifications: Outline ADA accommodations on all workplace postings and employment notices 
  • Track AI tool usage: Document how your business uses AI tools for workforce management tasks (hiring, scheduling, performance, etc.)

Frequently Asked Questions

 

Stay Up to Date With CT Labor Law Updates

Keeping track of the many labor law updates in the state of Connecticut can become challenging. Especially as the Connecticut minimum wage increases and updates to Connecticut paid sick leave keep evolving, maintaining a compliant organization in Connecticut requires extensive knowledge of the legislative requirements and an HR team that’s on top of policy enforcement and compliance practices. Without the right HR solutions to help maintain evolving legal requirements, employers can easily find themselves paying out hefty penalty costs without the right approach. 

Employers operating in Connecticut that need an extra hand when it comes to state requirements should reach out for HR consulting services from Connecticut payroll and HR experts. Additionally, employers can sign up for a compliance newsletter that outlines labor law updates nationwide, including federal regulations, to help stay up to date with the latest legislation.