Using AI for resume screening, candidate ranking, or interview analysis. This is the highest-risk AI use case in most states. Here is what Indiana businesses need to know in 2026.
Indiana has enacted SB 0149 — AI Systems. State agencies must inventory and report AI systems. Private sector disclosure guidelines issued.
State law does not replace federal law — you must comply with both. These federal rules apply to ai hiring laws nationwide:
Indiana's SB 0149 — AI Systems applies to most businesses with limited exemptions. Even businesses with under 50 employees should review requirements. Always review the specific statute for employee count and revenue thresholds.
The key deadline in Indiana is July 1, 2026. The law is enacted and compliance is required by the deadline above.
Indiana penalties for AI non-compliance: Civil penalties. Enforcement is active. The state AG has authority to investigate and fine without prior warning.
Federal law does not currently preempt state AI laws. Indiana's SB 0149 — AI Systems applies independently of federal rules. Federal laws like ECOA, FCRA, and HIPAA also apply alongside state law — so you must comply with both.
Best practice: document all AI systems used, conduct an internal audit, implement required disclosures, and keep records for at least 3 years. For very high-risk uses like ai hiring laws, consider hiring an independent third-party auditor to validate compliance.
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