Colorado's governor signed SB 26-189 in mid-May 2026, replacing the state's AI Act (SB 24-205) with a notice-only framework that takes effect in January 2027. 1 The replacement drops the risk-management programmes, annual impact assessments and algorithmic-discrimination duties that had made SB 24-205 the most advanced AI employment-discrimination statute in the United States. What survives is a duty to give pre-use notice and run an adverse-action process, the minimum a worker can be told before an AI tool decides their job.
The retreat followed a federal court. A magistrate judge stayed SB 24-205 on 27 April, with the US Department of Justice (DOJ) joining Elon Musk's xAI, his frontier-model company, in arguing the law was unconstitutional. 2 A state passed AI worker protection; the federal executive and a model-maker sued to stop it; the legislature replaced it with a shell. Other states weighing similar bills now have a worked example of how one is dismantled.
Brussels moved the same direction in the same fortnight. The EU Digital Omnibus provisional deal weakened the employer AI-literacy duty from an obligation to ensure workers understand AI systems to one to take measures supporting that understanding . The supporters of intervention lost a law in Denver and a worker-facing clause in Brussels at once, a retreat on both sides of the Atlantic while the displacement count kept rising.
A fair counter holds that SB 24-205 was constitutionally fragile and over-broad, which is the ground it fell on, not the merits of protecting workers. Yet Washington's most viable federal vehicle, the Warner-Rounds commission bill , only studies the problem. The one US instrument with enforcement teeth has now been struck down, leaving a study bill as the realistic ceiling.
