Pipeline

A Remote Posting Adds the Candidate's State AI Law to Yours

New York City's and Illinois' AI hiring rules reach employers based anywhere: the trigger is where the candidate or position sits, not the head office. The city's audit-and-notice duty attaches when an automated employment decision tool is used on a New York City candidate, and Illinois' AI Video Interview Act attaches when AI analyses a recorded interview for an Illinois-based position. Posting a role remote-anywhere accepts the strictest state on your applicant list. Two levers sit in the posting: name the geography, or build to the strictest standard for everyone.

The takeA recruiter setting a req to remote-anywhere is making a jurisdiction choice, and almost nobody in the process treats it as one. Decide the geography deliberately, get counsel in the room once before the req goes live, and record who decided. A national posting is a perfectly good call when somebody makes it. It is an expensive accident when it is a default inherited from whichever req got cloned last.

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Which state's law applies to a remote req?

The candidate's or the position's, on top of your own. The Illinois AI Video Interview Act keys on Illinois-based positions rather than on Illinois-based employers, so a remote role filled from Chicago falls inside it once AI analyses a recorded interview 3. New York City's duty attaches to the use of an automated employment decision tool on a New York City candidate 2. The Illinois Human Rights Act amendments, live since January 1, 2026, reach employers operating in Illinois 1.

None of those triggers is a headquarters, which is the whole problem. A compliance map drawn around the states a company has offices in leaves out every state its applicants are in.

California pushes on the definition instead. Its FEHA regulations now cover automated-decision systems, effective October 1, 2025, and define one broadly enough to include screening resumes for particular terms or patterns and analysing facial expression, word choice or voice in an online interview 46. An agent acting for the employer, a vendor running the system included, counts as an employer under the Act, so outsourcing the tool does not outsource the question.

Maryland shows how narrow a trigger can get. Since October 1, 2020 an employer may not use a facial recognition service to create a facial template during an applicant's interview without a signed waiver giving the applicant's name, the date of the interview, consent to the use, and whether the applicant read the waiver 5. It reaches facial templates created during an interview and nothing else: not the recording, not voice analysis, not AI scoring of what the candidate says.

Pick the geography, or build to the strictest state

Both levers are in the location field. One names the states the role is genuinely open to, so the rule set stops at the edge of that list. The other posts nationally and applies the strictest applicable standard to every candidate, whatever their state asks for. Posting nationally while running your home state's rules is not a third option.

Each lever has a real cost, and picking without naming the cost is how teams end up with neither.

Scoping the geography costs applicant volume and creates a maintenance job. The list has to stay true: if sourcing is working a state the posting excludes, the posting is now a document that contradicts the process, and the process is the part a regulator can see. It also has to survive the way the AI requirement in a job description reshapes who applies, since a narrower geography and a sharper requirement compound.

Building to the strictest standard costs process. You run the audit, post the summary, send the notice and collect the consent for every candidate, including the ones whose state asks for none of it. That is more work per req and far less work per decision, because nobody has to check a map before sending an email. For a team hiring in six or more states at once, it is usually the cheaper of the two.

What the strictest standard actually costs

Across the regimes here, that means New York City's discipline plus Illinois' consent, applied to everyone. That is a bias audit from within the prior year on any tool that substantially assists or replaces a discretionary hiring decision, a public summary of the results, at least ten business days of candidate notice, and, where AI analyses a recorded video interview, an explanation of what the system evaluates plus consent before it runs 23.

The details that catch people out are all in the timing and the scope:

  • The audit expires. New York City wants one from within the prior year, and enforcement has run since July 5, 2023, with civil penalties set at a statutory maximum of $500 to $1,500 per day 2.
  • The notice period is ten business days, not ten calendar days, and a notice posted on a careers page starts the clock regardless of when a specific job went up 2.
  • The Illinois consent rule has an absolute edge even though the statute names no penalty: an employer may not use AI to evaluate an applicant who has not consented 3. A candidate who declines has to have a path that is not silence.
  • California adds no audit or notice duty, but it makes testing evidence. In a claim that an automated-decision system discriminated, the presence or absence of anti-bias testing is relevant, including its quality, recency, scope, results and the response to those results 4. Testing, finding a disparity and doing nothing is worse than the number looks.

Whether any of this attaches at all turns on one classification, which is why what counts as an automated employment decision tool is the question to settle before budgeting for the rest.

Write the location field like a compliance decision

Treat the location field as the first line of the compliance record, because that is what it is. Before a req goes live, name the states it is open to, note who decided and when, and check the list against where sourcing is actually working. A posting that says remote-anywhere while recruiting runs in three states buys the widest rule set for nothing.

Four habits make this stick without adding a stage:

1. Put the geography decision on the intake call with the hiring manager, next to the salary band. It takes one minute there and a week anywhere else. 2. Keep one list of the states the company is set up to hire in, dated, and have the posting template pull from that list. 3. Where the posting is national, write the notice and consent steps into the process for every candidate. A conditional step gets skipped under load. 4. Re-read the list when the tool stack changes. Switching on a vendor feature can move a req into scope without anyone editing the posting.

The wider state map is moving fast enough that a quarterly re-read is cheap insurance: which AI hiring laws actually apply now is the version to check yours against. Confirm any scope language with counsel before it ships, since the posting is a public document and the first one a complaint will quote.

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Common questions

Can a remote posting be limited to specific states?

Routinely, and usually for reasons that have nothing to do with AI rules: payroll registration, tax nexus and benefits all push employers to list the states a remote role is open to, and the same list does compliance work here. Whether a particular restriction is lawful depends on the states involved and on the reason for the line, so that question goes to counsel before it reaches a template. What is not in doubt is that the list has to be true. Sourcing, referrals and the applicant tracking system all have to respect it, because a posting contradicted by the process is worse evidence than a national posting honestly labelled.

What happens if a candidate applies from a state the posting did not list?

That candidate's state law is what a regulator or a plaintiff will look at, so the scoping only protects you while you actually decline to consider people outside the list. If the role is genuinely closed to that state, say so early and do not run the tool on the application. If the team wants to consider the person anyway, treat the req as national from that moment and apply the wider standard. The decision is fine either way; the drift is what causes problems.

Does an out-of-state employer owe Illinois consent for a video interview?

If the position is Illinois-based, yes. The Illinois AI Video Interview Act attaches to the position rather than to the employer's location, and it asks for notice, an explanation of how the AI works and what general types of characteristics it evaluates, and the applicant's consent before AI analyses the recording. It also bars evaluating an applicant who has not consented. On request, the video must be deleted within 30 days, and everyone who received a copy has to be told to delete their backups.

Does the New York City notice have to go out for every posting?

The notice has to reach the candidate at least ten business days before the tool is used. Posting it on a careers page satisfies the requirement and starts the clock regardless of when a particular job went live, which is why most employers handle it as a standing page rather than a per-req task. The bias audit is separate and annual: it must be from within the prior year, with a summary of the results posted publicly, and it attaches to the tool rather than to the posting.

Which records are worth keeping, and for how long?

Keep the tool classification and its reasoning, the audit and its date, the notices sent, the consents collected, and any testing you ran along with what you did about the results. California's amended FEHA regulations extended the employment-records retention period from two years to four and say expressly that automated-decision system data is included, so four years is a reasonable floor for a multi-state pipeline. Retention rules vary by state and by record type, so set the schedule with counsel rather than by guessing.

References

  1. 1. HB3773 Enrolled (Public Act 103-0804), amending the Illinois Human Rights Act Illinois General Assembly, 2024. ilga.gov Supports that the Illinois Human Rights Act amendments are live from January 1, 2026 and reach employers operating in Illinois.
  2. 2. Automated Employment Decision Tools: Frequently Asked Questions NYC Department of Consumer and Worker Protection (DCWP), 2023. nyc.gov Supports the New York City audit, posted summary and ten-business-day notice duties, the July 5, 2023 enforcement date and the statutory maximum penalty band of $500 to $1,500 per day.
  3. 3. Artificial Intelligence Video Interview Act, 820 ILCS 42 Illinois General Assembly, Illinois Compiled Statutes, 2020. ilga.gov Supports the claim that the Illinois video statute keys on Illinois-based positions, and the notice, explanation, consent and 30-day deletion duties.
  4. 4. Final Unmodified Text of Proposed Employment Regulations Regarding Automated-Decision Systems (Attachment B), 2 CCR sections 11008, 11008.1 California Civil Rights Department, Civil Rights Council, 2025. calcivilrights.ca.gov Supports the October 1, 2025 California scope and the vendor-as-employer clause, and (at sections 11009 and 11013 of the same filing) the evidentiary weight given to anti-bias testing and the extension of records retention from two years to four.
  5. 5. Chapter 446 (House Bill 1202), Labor and Employment - Use of Facial Recognition Services - Prohibition, Md. Code Lab. & Empl. section 3-717 Maryland General Assembly, 2020 Laws of Maryland, 2020. mgaleg.maryland.gov Supports the Maryland written-waiver requirement before a facial template is created during an applicant's interview.
  6. 6. Rulemaking Actions - Civil Rights Council California Civil Rights Department, Civil Rights Council, 2025. calcivilrights.ca.gov The Council's own record of the automated-decision-system employment regulations: approved by OAL and filed with the Secretary of State, effective October 1, 2025.

6 sources, numbered by first appearance. How Olive sources claims

General guidance for hiring teams. What works at one company and one volume may not transfer to yours.

Olive assesses how a person works with AI. It does not detect AI-written documents, and it never produces a score, a ranking, or a match percentage for a person. Candidates read the same report the employer reads.

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