Regulon.AI — LA-HB-421 · LA HB 421 (Automated Decision Systems & Employment)

Summary

Louisiana HB 421 regulates employers' use of automated decision systems (ADS) in employment contexts, covering hiring, discipline, termination, compensation, and other employment-related decisions. Employers must provide detailed pre-deployment written notice to workers, maintain ADS inventories, ensure human review of ADS-assisted decisions, and give workers data access and correction rights. The bill categorically prohibits use of facial recognition, gait, and emotion recognition technologies in ADS, and bars employers from using ADS to infer protected status or make predictions unrelated to essential job functions. Workers have a right to appeal any ADS-assisted employment decision with a mandatory human review process. Enforcement is through Louisiana Works (agency-initiated) and private civil actions, with a $500 civil penalty per violation plus availability of injunctive relief, punitive damages, and attorney fees. Collective bargaining agreements may waive the bill's provisions under specified conditions.

Enforcement & Penalties

Enforcement Authority

Louisiana Works is the designated enforcement agency, with authority to investigate alleged violations, issue citations against employers, and order appropriate temporary relief to mitigate a violation or maintain the status quo pending a full investigation or hearing. Civil actions may be brought in judicial district court in the parish where the violation occurred, the employee resides, or the employer is located. The statute authorizes a petitioner to bring a civil action but does not explicitly specify standing requirements beyond the enforcement framework. Louisiana Works may promulgate rules and regulations as necessary for implementation.

Penalties

Civil penalty of $500 per violation. In civil actions, petitioner may seek appropriate temporary or preliminary injunctive relief, punitive damages, and reasonable attorney fees and costs. Statutory civil penalty does not require proof of actual monetary harm.

Who Is Covered

"Employer" means any person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment of any worker. This also includes all branches of state government, parishes, cities, and municipalities, or any other political subdivision of the state, school district, special district, or any authority, commission, or board, or any other agency or instrumentality thereof.

"Employer" also includes a labor contractor of an employer as defined in Subparagraph (a) of this Paragraph.

"Vendor" means a third party, subcontractor, or entity engaged by an employer or an employer's labor contractor that provides software, technology, or a related service that is used to collect, store, analyze, or interpret worker data or worker information.

What Is Covered

"Automated decision system" or "ADS" means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decisionmaking and materially impacts by a natural person. An automated decision system does not include a spam email filter, firewall, antivirus software, identity and access management tools, calculator, database, data set, or other compilation of data.

Compliance Obligations 12 obligations · click obligation ID to open requirement page

H-01 Human Oversight of Automated Decisions · H-01.3 · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:972(A)-(E)

Plain Language

Employers must provide detailed written pre-deployment notice to any worker (or authorized representative) who will foreseeably be directly affected by an ADS used for employment-related decisions other than hiring. Notice must be given at least 30 days before first deployment, immediately for existing ADS at the time the law takes effect, and within 30 days of a new hire's start date. The notice must be plain-language, standalone, in the workers' routine communication language, and delivered via an accessible method. For hiring-specific ADS, employers must notify job applicants upon receiving their application — this can be done via auto-reply or on the job posting. The notice must include eight categories of information: decision types affected, data categories and sources, disproportionate parameters, ADS creator identity, quotas if applicable, data access/correction rights, anti-retaliation notice, and appeal rights. Employers must also maintain an updated inventory of all ADS currently in use.

Statutory Text

A. An employer shall provide written notice that an ADS, for the purpose of making employment-related decisions, not including hiring, is in use at the workplace to a worker who will foreseeably be directly affected by the ADS, or his authorized representative. The notice shall be provided at any of the following time periods: (1) At least thirty days before an ADS is first deployed by the employer. (2) If the employer is using an ADS to assist in making employment-related decisions at the time this Part takes effect. (3) To a new worker within thirty days of his hiring date. B. An employer shall maintain an updated list of all ADS currently in use. C. A written notice required by this Section shall meet all of the following requirements: (1) Written in plain language as a separate, standalone communication. (2) In the language in which routine communications and other information are provided to workers. (3) Provided via a simple and easy-to-use method, including but not limited to an email, hyperlink, or other written format. D. An employer who uses an ADS to make hiring decisions shall notify a job applicant upon receiving his application that the employer utilizes an ADS for hiring decisions. Notifications may be made using an automatic reply mechanism or on the job posting. E. A notice issued pursuant to Subsection A of this Section shall contain all of the following information: (1) The type of employment-related decisions potentially affected by the ADS. (2) A general description of the categories of worker input data the ADS will use, the sources of worker input data, and how worker input data will be collected. (3) Any key parameters known to disproportionately affect the output of the ADS. (4) The individuals, vendors, or entities that created the ADS. (5) If applicable, a description of each quota set or measure by an ADS that the worker is subject to, including the quantified number of tasks to be performed or products to be produced, and any potential adverse employment action that could result from failure to meet the quota, as well as whether those quotas are subject to change and if any notice is given of changes in quotas. (6) A description of the worker's right to access and correct the worker's own data used by the ADS. (7) That the employer shall be prohibited from retaliating against a worker who exercises his rights as provided in Paragraph (6) of this Subsection. (8) That the worker has a right to appeal any decision made with the assistance of an ADS and the process to appeal that decision.

S-02 Prohibited Conduct & Output Restrictions · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:973(A)(1)-(2)

Plain Language

Employers face categorical prohibitions on several ADS uses: (1) ADS may not be used in any manner that violates existing labor, employment, health and safety, or civil rights law; (2) ADS may not infer a worker's protected status under Louisiana anti-discrimination law (R.S. 23:332); (3) ADS may not be used to identify, profile, predict, or retaliate against workers for exercising legal rights; (4) ADS may not make predictions or inferences about worker behavior, beliefs, personality, emotional state, health, or other characteristics unrelated to essential job functions. Additionally, employers are categorically prohibited from using any ADS that employs facial recognition, gait recognition, or emotion recognition technologies — this is an absolute ban regardless of use case.

Statutory Text

A.(1) An employer shall not use an ADS to do any of the following: (a) Prevent compliance with or violate any federal, state, or local labor, occupational health and safety, employment, or civil rights laws or regulations. (b) Infer a worker's protected status as provided for in R.S. 23:332. (c) Identify, profile, predict, or take adverse action against a worker for exercising his legal rights, including but not limited to rights guaranteed by state and federal employment and labor law. (d) Make predictions or inferences about a worker's behavior, beliefs, intentions, personality, emotional state, health, or other characteristics or behavior that are unrelated to the worker's essential job functions. (2) In addition to the prohibitions provided for in Paragraph (1) of this Subsection, an employer shall not use an ADS that utilizes facial recognition, gait, or emotion recognition technologies.

D-01 Automated Processing Rights & Data Controls · D-01.4 · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:973(B)

Plain Language

Employers may not use an ADS to collect worker data for any purpose that was not disclosed in the pre-use notice required by R.S. 23:972. This is a purpose limitation obligation — the ADS may only collect worker data for purposes the employer has already communicated to the worker. Any new data collection purpose requires updated notice before collection begins.

Statutory Text

B. An employer shall not use an ADS to collect worker data for a purpose that is not disclosed pursuant to the notice requirements as provided in R.S. 23:972.

H-01 Human Oversight of Automated Decisions · H-01.6 · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:973(C)(1)-(3)

Plain Language

Employers may never rely solely on an ADS for discipline, termination, or deactivation decisions — a human must always be involved. For any employment-related decision assisted by ADS output, the employer or vendor must: (1) ensure accuracy of the ADS output, and (2) assign a designated internal reviewer to independently investigate and compile corroborating evidence. The reviewer must have sufficient authority, expertise in the ADS, and training to make a well-informed decision, and must be protected from retaliation. If the employer cannot corroborate the ADS output, or if the reviewer concludes the output is inaccurate, incomplete, or misleading, the employer may not rely on the ADS for that decision. This goes beyond a right to request human review — it is a mandatory human review and corroboration requirement before any ADS-assisted employment decision.

Statutory Text

C.(1) An employer shall not rely solely on an ADS when making a discipline, termination, or deactivation decision. (2) If an employer or a vendor utilizes an ADS output to assist in making an employment-related decision, the employer or vendor shall do all of the following: (a) Ensure the accuracy of the ADS output. (b)(i) Use a designated internal reviewer to conduct a separate investigation and compile corroborating information for the decision. This information may include but is not limited to supervisory or managerial evaluations, personnel files, employee work products, or peer reviews. (ii) The designated internal reviewer required by this Subparagraph shall have all of the following: (aa) Sufficient authority, discretion, resources, and time to corroborate the ADS output. (bb) Sufficient expertise in the operation of similar systems and a sufficient understanding of the ADS in question to interpret its outputs as well as results of relevant impact assessments. (cc) Education, training, or experience sufficient to allow the reviewer to make a well-informed decision. (iii) The designated internal reviewer shall be protected from retaliation for exercising his responsibilities. (3) An employer shall not rely on an ADS to make an employment-related decision if the employer cannot corroborate the ADS output or the human reviewer has concluded that the ADS output is inaccurate, incomplete, or misleading.

D-01 Automated Processing Rights & Data Controls · D-01.1 D-01.2 · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:973(C)(4)(a)-(b)

Plain Language

Workers have the right to access all worker data collected, used, or produced by an ADS — including both input data and output data — and to correct errors in that data, including data used as corroborating evidence by a human reviewer. Workers may designate an authorized representative (who cannot be the employer) to request access on their behalf. This right applies to all ADS-related data, not just data used in adverse decisions.

Statutory Text

(4)(a) An employer shall allow a worker to access worker data collected, used by, or produced by an ADS and correct errors in any input or output data used by or produced by the ADS or used as corroborating evidence by a human reviewer. (b) An affected worker shall be allowed to choose an authorized representative to request access to the worker's data on his behalf.

Other · EmploymentAutomated Decisionmaking

R.S. 23:973(D)(1)-(4)

Plain Language

Employers are prohibited from using ADS that rely on individualized worker data to determine or inform compensation unless four conditions are all met: (1) input data directly relates to the worker's ability to complete the task based on education, training, experience, or seniority; (2) the inputs are clearly communicated to the worker so they understand compensation is a function of those attributes; (3) the ADS is not used more than once every six months per worker; and (4) the ADS is not used for hiring, promotion, or other meaningful work duty changes. If any condition is not met, use of the ADS for compensation is prohibited.

Statutory Text

D. An employer shall not use an ADS that utilizes or relies on individualized worker data as inputs or outputs to determine or inform compensation, unless the employer can demonstrate all of the following: (1) The input data is directly related to the ability of the worker to complete the task based on his education, training, experience, or seniority. (2) The inputs used are clearly communicated to the worker such that the worker knows his compensation is a function of the identified attributes. (3) He does not use the ADS more than once per a six-month period per worker. (4) He does not use the ADS for the purpose of hiring, promoting, or any other meaningful changes in work duties.

Other · EmploymentAutomated Decisionmaking

R.S. 23:973(E)

Plain Language

Employers may not rely on customer ratings as the sole or primary input to an ADS for making employment-related decisions. Customer ratings may be one input among several, but the ADS cannot be primarily driven by them. This is a data input restriction requiring employers to ensure their ADS uses substantive, diversified data sources for employment decisions.

Statutory Text

E. An employer shall not use customer ratings as the only or primary input data for an ADS to make employment-related decisions.

D-01 Automated Processing Rights & Data Controls · D-01.1 · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:973(F)-(G)

Plain Language

Workers have the right to request — and employers must provide — a copy of the most recent 12 months of the worker's own data that was primarily used by an ADS to make a discipline, termination, or deactivation decision. This request is capped at once per 12-month period. When providing any worker data under this Part, the employer must anonymize third-party personal information (customers, other workers, or other individuals) to protect their privacy. This data portability right is distinct from the general data access right in §973(C)(4) — it specifically covers a full 12-month data extract for adverse decisions.

Statutory Text

F. A worker has the right to request, and an employer shall provide, a copy of the most recent twelve months of the worker's own data primarily used by an ADS to make a discipline, termination, or deactivation decision. A worker shall be limited to one request every twelve months for a copy of his own data used by an ADS to make a discipline, termination, or deactivation decision. G. For purposes of safeguarding the privacy rights of consumers, workers, and individuals, when an employer is required to provide worker data pursuant to this Part, the worker data shall be provided in a manner that provides anonymity regarding the customer's, other worker's, or individual's personal information.

H-01 Human Oversight of Automated Decisions · H-01.1 · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:974(A)-(B)

Plain Language

When an employer primarily relies on an ADS to make a discipline, termination, or deactivation decision, the employer must provide the affected worker with a post-decision written notice at the time the decision is made. The notice must be plain-language, standalone, in the worker's routine language, and accessible. It must inform the worker of: the human contact for more information and data requests, that an ADS was used, the worker's right to request a copy of their data, the anti-retaliation prohibition, and the worker's right to appeal under R.S. 23:975. This is a post-decision notice — distinct from the pre-deployment notice in §972.

Statutory Text

A. An employer that primarily relies on an ADS to make a discipline, termination, or deactivation decision shall provide the affected worker with written notice at the time such decision is made. The notice shall meet all of the following requirements: (1) Written in plain language as a separate, standalone communication. (2) In the language in which routine communications and other information are provided to workers. (3) Provided via a simple and easy-to-use method, including but not limited to an email, hyperlink, or other written format. B. A notice issued pursuant to Subsection A of this Section shall contain all of the following information: (1) The human individual to contact for more information about the decision and the ability to request a copy of the worker's own worker data relied on in the decision. (2) That the employer used an ADS to assist the employer in any discipline, termination, or deactivation decisions with respect to the worker. (3) That the worker has the right to request a copy of the worker's data used by the ADS. (4) That the employer is prohibited from retaliating against the worker for exercising his right pursuant to this Part. (5) The worker's right to appeal the decision as provided in R.S. 23:975.

H-01 Human Oversight of Automated Decisions · H-01.4 H-01.5 · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:975(A)-(C)

Plain Language

Workers have a statutory right to appeal any ADS-assisted employment-related decision. Employers or vendors must provide an appeal form (or electronic link) within 30 days of notification, allowing the worker to request input/output data access, request corroborating evidence, state reasons for appeal, and designate an authorized representative. The employer or vendor must respond within 14 business days by assigning a human reviewer who was not involved in the original decision, has authority to overturn it, and can objectively evaluate all evidence. The written response must describe the appeal result and its reasons. If the reviewer determines the decision should be overturned, the employer or vendor must rectify it within 21 business days. Both employers and vendors are directly obligated under this section.

Statutory Text

A. If an employer has used an ADS to make an employment-related decision about a worker, the affected worker has the right to appeal that decision, request a human review, request submission of additional information, and correct any errors in the data used by the ADS. B. An employer or a vendor that used an ADS to make an employment-related decision shall provide an affected worker with a form or a hyperlink to an electronic form that provides that the worker has a right to appeal the decision within thirty days from the date that the worker was notified. The appeal form provided to an affected worker shall include all of the following: (1) The option to request access to the data used as input to or as output from the ADS. (2) The option to request access to any corroborating or supporting evidence provided by a human reviewer to verify output from the ADS. (3) The worker's reason or justification for an appeal and any evidence to support the appeal. (4) A designation for an authorized representative who can also access the data. C.(1) An employer or a vendor shall respond to an appeal within fourteen business days. (2)(a)(i) In responding to an appeal, the employer or vendor shall designate a human reviewer who shall meet all of the following requirements: (aa) He can objectively evaluate all evidence. (bb) He has sufficient authority, discretion, and resources to evaluate the decision. (cc) He has the authority to overturn the decision. (ii) The employer or vendor shall not designate a person who was involved in the decision that the worker is appealing. (b) The response provided to the worker shall be composed on a clear, written document which describes the result of the appeal and the reasons for that result. (3) If the human reviewer determines that the employment-related decision should be overturned, the employer or vendor shall rectify the decision within twenty-one business days.

G-03 Whistleblower & Anti-Retaliation Protections · G-03.3 · Deployer · EmploymentAutomated Decisionmaking

R.S. 23:977

Plain Language

Employers are broadly prohibited from retaliating against workers for exercising any right under this Part — including data access, appeal, and correction rights — or for filing complaints with Louisiana Works, cooperating in investigations, or assisting in enforcement. Retaliation is defined to include discharge, threats to discharge, demotion, suspension, discrimination, or retaliation in any manner. This is a comprehensive anti-retaliation provision that covers both internal rights exercise and external enforcement cooperation.

Statutory Text

An employer shall not discharge, threaten to discharge, demote, suspend, or discriminate or retaliate, in any manner, against any worker for using or attempting to exercise his rights pursuant to this Part, filing a complaint with Louisiana Works alleging a violation of this Part, cooperating in an investigation or prosecution of an alleged violation of this Part, or any action taken by the worker to invoke or assist in any manner for the enforcement of this Part, or for exercising or attempting to exercise any right protected pursuant to this Part.

Other · EmploymentAutomated Decisionmaking

R.S. 23:978

Plain Language

Parties covered by a collective bargaining agreement may be exempt from this Part if the agreement: (1) explicitly waives these provisions in clear and unambiguous terms, (2) expressly covers wages/earnings, working conditions, and other terms/conditions of work, and (3) provides protection from algorithmic management. All three conditions must be met — a general CBA without specific algorithmic management protections does not qualify for the waiver.

Statutory Text

The provisions of this Part shall not apply to parties covered by a collective bargaining agreement if the agreement explicitly waives the provisions of this Part in clear and unambiguous terms, expressly provides for the wages or earnings, working conditions, and other terms and conditions of work, and provides protection from algorithmic management.