Using AI for resume screening, candidate ranking, or interview analysis. This is the highest-risk AI use case in most states. Here is what Texas businesses need to know in 2026.
Texas has enacted TRAIGA — Texas Responsible AI Governance Act (HB 149, 2025). Prohibits developing or deploying AI for intentional behavioral manipulation causing harm, unlawful discrimination, and unlawful synthetic media; applies to businesses and state agencies. Enforced exclusively by the Texas Attorney General with a 60-day cure period.
State law does not replace federal law — you must comply with both. These federal rules apply to ai hiring laws nationwide:
It depends on the thresholds written into the specific statute, and those are not comparable across laws — some key on employee count or revenue, others on user volume or on the kind of system you deploy. We do not publish a generic small-business exemption for Texas, because stating one the statute does not contain would be worse than stating none. Read the primary source linked from our Texas law page to confirm whether you are in scope.
The key deadline in Texas is January 1, 2026. This law is already in effect — you must comply now.
Texas penalties for AI non-compliance: AG-enforced (no private right of action); up to $100,000 per uncurable violation + $40,000/day. Who enforces, and how, varies by statute — check the primary source linked from our Texas law page for the enforcement authority and process that actually applies to you.
Federal law does not currently preempt state AI law. Texas's AI statutes apply independently of federal rules, and federal laws like ECOA, FCRA, and HIPAA apply alongside them — 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.
Take the free 4-question risk snapshot. See which laws apply, your risk level, and the first actions to take — no signup required.
Take the Free Assessment →