The U.S. Department of Labor (DOL) and White House have an overarching message for workplaces: Artificial intelligence is here to stay — and it’s not a matter of if, but rather when and how, you incorporate it into your business. As businesses’ internal software platforms are rapidly being retrofitted with AI capabilities, the DOL has increasingly emphasized workforce development, training, and AI literacy. Over the past several months, the DOL has launched new initiatives aimed at helping employers and workers adapt to AI-driven changes in the labor market. In February, the DOL released its “Artificial Intelligence Literacy Framework,” which was intended as a resource for businesses to responsibly integrate AI into their systems. In late April, the DOL announced its launch of its “AI in Registered Apprenticeship Innovation Portal,” a “resource for organizations looking to build artificial intelligence literacy and develop AI-focused Registered Apprenticeship programs.” And this all comes alongside the White House’s “National Policy Framework for Artificial Intelligence” released in March. That framework functioned as a national policy roadmap, outlining steps Congress could take to encourage AI across labor sectors.
For private employers, the DOL’s developments offer insight into how federal regulators evaluate reasonable employer practices, risk mitigation, and responsible use of AI in employment decisions. Rather than fearing or ignoring AI, employers should stay one step ahead and evaluate its use carefully and strategically. These areas have direct implications for compliance, audits, investigations, and litigation.
Link to Practical scenarios for employers to evaluate Practical scenarios for employers to evaluate
The DOL has defined AI literacy as “a foundational set of competencies that enable individuals to use and evaluate AI technologies responsibly, with a primary focus on generative AI, which is increasingly central to the modern workplace.” Employers should assess how current AI usage aligns with emerging DOL expectations, including:
- Hiring and recruiting – If AI tools are used to screen or rank applicants, employers should understand how outputs are generated and that final decisions involve meaningful human review.
- Performance management and discipline- The DOL has emphasized training to ensure employees “recogniz[e] the limits of AI authority.” Managers relying on AI-assisted analytics should be trained to question results and investigate sources rather than treating them as gospel. This is especially true where a manager or employee has a legal question.
- Training – If there isn’t a section in your employee handbook on AI use, there should be. We have previously written about incorporating AI policies into your workplace. Carefully assess when and how employees should be utilizing AI platforms. The DOL has cautioned that “[a]s AI tools become embedded in daily operations, employers need workers who can use these technologies responsibly and effectively.” Whether you create a policy or not, employees will be using AI — so make sure to craft a policy to ensure safe, responsible, and authorized AI use.
- Privacy and confidentiality – Employees need to be trained on restrictions related to entering sensitive employee, customer, or proprietary data into AI systems. The DOL has emphasized that “[a]s AI tools become more embedded in daily workflows, workers must understand the boundaries of appropriate use, both to safeguard information and to ensure outputs are applied ethnically and effectively,” by “protecting sensitive data . . . [and] complying with . . . legal requirements.”
Link to Key takeaways for employers Key takeaways for employers
While few AI-specific employment regulations have been enacted so far at the state level, and attempts at federal legislation related to AI are still pending, the DOL’s messages and actions are a preview of regulatory priorities. Employers utilizing AI should consider:
- Reviewing whether employees who use AI tools receive appropriate training and ongoing oversight;
- Incorporating AI literacy into human resources compliance programs, supervisor trainings, and employee handbook policies;
- Leveraging apprenticeships or structured development programs to support AI-related roles;
- Documenting decision-making processes (especially decisions that could later turn into litigation — such as hiring and firing) to preserve evidence of human review and nondiscriminatory practices and
- Monitoring federal and state guidance as enforcement evolves. California, for example, is already at the forefront of AI regulation with the “Transparency in Frontier Artificial Intelligence Act,” which seeks to develop “commonsense guardrails” on AI use.
Link to Looking ahead Looking ahead
The DOL is also preparing to launch an “AI Workforce Research Hub” to study AI’s impact on job creation, displacement, and wages. For private employers, the takeaway is clear: AI adoption and workforce development are now legal strategy issues as much as operational ones. Either adapt or get left behind. Employers that invest early in training, governance, and responsible AI integration will be better positioned to defend their practices as regulatory expectations continue to take shape.