Michigan · House Bill · 2026 Session
HB5579
Michigan House Bill No. 5579 — Responsible Artificial Intelligence Security for Employees Act

Status ● Introduced Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 5 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Dual enforcement: private right of action by any aggrieved covered individual or a person acting on their behalf (including a labor organization), and public enforcement by the county prosecutor or the attorney general to collect civil fines. No cure period or safe harbor is specified.
Private Right of Action
private right of action by any aggrieved covered individual or a person acting on their behalf (including a labor organization), and public enforcement by the county prosecutor or the attorney general to collect civil fines.
Penalties
Private plaintiffs may recover economic damages, noneconomic damages, or both, plus costs and attorney fees. Courts may also award injunctive relief. Separately, a person that violates the act is subject to a civil fine of not more than $500 per violation, collectible by the county prosecutor or attorney general. Courts may also issue injunctions and award costs and reasonable attorney fees in public enforcement actions.

What This Bill Requires

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text
Analysis & Obligations
Sec. 1
Short title

Sec. 1. This act may be cited as the "responsible artificial intelligence security for employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) act".

Section 1 establishes the short title of the act as the "Responsible Artificial Intelligence Security for Employees Act." This is a naming provision with no compliance obligation.

Sec. 3
Definitions

(a)–(o) Sec. 3. As used in this act: (a) "ApplicantApplicant"Applicant" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employer.Sec. 3(a)" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j). (b) "Automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b)" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c). (c) "Covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)" means an individual who is either of the following: (i) An employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i). (ii) An applicantApplicant"Applicant" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employer.Sec. 3(a). (d) "DataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d)" means recorded information regardless of the form or the media on which the information is recorded. (e) "DepartmentDepartment"Department" means the department of labor and economic opportunity.Sec. 3(e)" means the department of labor and economic opportunity. (f) "DependentDependent"Dependent" means an individual who receives more than 1/2 of the individual's cost of support from the income of a covered individual, including any of the following of the covered individual: (i) Child, stepchild, adopted child, or grandchild, if the individual meets any of the following conditions: (A) Is younger than 18 years of age. (B) Is older than 18 years of age and because the individual has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The individual is younger than 22 years of age and is a full-time student. (ii) Spouse. (iii) Parent if the parent is older than 65 years of age or is unable to engage in gainful employment. (iv) Sibling if the sibling meets any of the following conditions: (A) Is younger than 18 years of age and is orphaned or the living parents of the sibling are dependent parents to the covered individual. (B) Is older than 18 years of age and because the sibling has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The sibling is younger than 22 years of age and is a full-time student.Sec. 3(f)" means an individual who receives more than 1/2 of the individual's cost of support from the income of a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c), including any of the following of the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c): (i) Child, stepchild, adopted child, or grandchild, if the individual meets any of the following conditions: (A) Is younger than 18 years of age. (B) Is older than 18 years of age and because the individual has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The individual is younger than 22 years of age and is a full-time student. (ii) Spouse. (iii) Parent if the parent is older than 65 years of age or is unable to engage in gainful employment. (iv) Sibling if the sibling meets any of the following conditions: (A) Is younger than 18 years of age and is orphaned or the living parents of the sibling are dependentDependent"Dependent" means an individual who receives more than 1/2 of the individual's cost of support from the income of a covered individual, including any of the following of the covered individual: (i) Child, stepchild, adopted child, or grandchild, if the individual meets any of the following conditions: (A) Is younger than 18 years of age. (B) Is older than 18 years of age and because the individual has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The individual is younger than 22 years of age and is a full-time student. (ii) Spouse. (iii) Parent if the parent is older than 65 years of age or is unable to engage in gainful employment. (iv) Sibling if the sibling meets any of the following conditions: (A) Is younger than 18 years of age and is orphaned or the living parents of the sibling are dependent parents to the covered individual. (B) Is older than 18 years of age and because the sibling has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The sibling is younger than 22 years of age and is a full-time student.Sec. 3(f) parents to the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c). (B) Is older than 18 years of age and because the sibling has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The sibling is younger than 22 years of age and is a full-time student. (g) "DirectorDirector"Director" means the director of the department or the director's designee.Sec. 3(g)" means the director of the departmentDepartment"Department" means the department of labor and economic opportunity.Sec. 3(e) or the directorDirector"Director" means the director of the department or the director's designee.Sec. 3(g)'s designee. (h) "Electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h)" means any system that facilitates the collection of dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) concerning a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system. (i) "EmployeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i)" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) that operates in the state. (j) "EmployerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)" means a personPerson"Person" means an individual or a partnership, corporation, limited liability company, association, governmental entity, or other legal entity.Sec. 3(m) that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. EmployerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) includes a third party or service provider that an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) uses for electronic monitoring or employment-related decisionsEmployment-related decision"Employment-related decision" means any decision made by an employer that affects wages, benefits, other compensation, hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job content, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, and other terms or conditions of employment. For an independent contractor or applicant for employment, employment-related decisions means the equivalent of these decisions based on the independent contractor's or candidate's contract with or relationship to the employer.Sec. 3(k). (k) "Employment-related decisionEmployment-related decision"Employment-related decision" means any decision made by an employer that affects wages, benefits, other compensation, hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job content, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, and other terms or conditions of employment. For an independent contractor or applicant for employment, employment-related decisions means the equivalent of these decisions based on the independent contractor's or candidate's contract with or relationship to the employer.Sec. 3(k)" means any decision made by an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) that affects wages, benefits, other compensation, hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job content, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, and other terms or conditions of employment. For an independent contractor or applicantApplicant"Applicant" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employer.Sec. 3(a) for employment, employment-related decisionsEmployment-related decision"Employment-related decision" means any decision made by an employer that affects wages, benefits, other compensation, hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job content, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, and other terms or conditions of employment. For an independent contractor or applicant for employment, employment-related decisions means the equivalent of these decisions based on the independent contractor's or candidate's contract with or relationship to the employer.Sec. 3(k) means the equivalent of these decisions based on the independent contractor's or candidate's contract with or relationship to the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j). (l) "Labor organizationLabor organization"Labor organization" means either of the following: (i) Labor organization as that term is defined in section 2 of 1939 PA 176, MCL 423.2. (ii) Bargaining representative as that term is defined in section 1 of 1947 PA 336, MCL 423.201.Sec. 3(l)" means either of the following: (i) Labor organizationLabor organization"Labor organization" means either of the following: (i) Labor organization as that term is defined in section 2 of 1939 PA 176, MCL 423.2. (ii) Bargaining representative as that term is defined in section 1 of 1947 PA 336, MCL 423.201.Sec. 3(l) as that term is defined in section 2 of 1939 PA 176, MCL 423.2. (ii) Bargaining representative as that term is defined in section 1 of 1947 PA 336, MCL 423.201. (m) "PersonPerson"Person" means an individual or a partnership, corporation, limited liability company, association, governmental entity, or other legal entity.Sec. 3(m)" means an individual or a partnership, corporation, limited liability company, association, governmental entity, or other legal entity. (n) "Security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n)" means the unauthorized access and acquisition of dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) that compromises the security or confidentiality of personal information maintained by a personPerson"Person" means an individual or a partnership, corporation, limited liability company, association, governmental entity, or other legal entity.Sec. 3(m) or agency as part of a database of personal information regarding multiple individuals. (o) "Qualified characteristicQualified characteristic"Qualified characteristic" means an individual's race, color, religious creed, national origin, disability, sex, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, including, but not limited to, lactation or the need to express breast milk for a nursing child, ancestry, or status as a veteran.Sec. 3(o)" means an individual's race, color, religious creed, national origin, disability, sex, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, including, but not limited to, lactation or the need to express breast milk for a nursing child, ancestry, or status as a veteran.

Section 3 defines the key terms used throughout the act, including the two regulated tool categories — automated decisions tools and electronic monitoring tools — and the covered parties (employers, employees, applicants, and covered individuals). The definition of "employer" is notably broad, extending to third parties and service providers that employers use for monitoring or employment-related decisions. The definition of "automated decisions tool" covers any computational process — including machine learning, statistical modeling, data analytics, or artificial intelligence — that issues simplified outputs used to substantially assist or replace discretionary employment decision-making.

"Qualified characteristic" tracks the protected classes under Michigan's Elliott-Larsen Civil Rights Act and adds gender identity, sexual orientation, genetic information, and veteran status.

Sec. 4
Prohibition on automated decision tools for employment decisions
Deployer

(1)–(2) 1 Sec. 4. (1) Except as otherwise provided in subsection (2), an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall not use an automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to make an employment-related decisionEmployment-related decision"Employment-related decision" means any decision made by an employer that affects wages, benefits, other compensation, hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job content, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, and other terms or conditions of employment. For an independent contractor or applicant for employment, employment-related decisions means the equivalent of these decisions based on the independent contractor's or candidate's contract with or relationship to the employer.Sec. 3(k). (2) An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) may use an automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to screen large volumes of job applications to do either of the following: (a) Identify candidates who meet a set hiring criteria. (b) Assess candidates based on job skills.

Section 4 establishes a near-categorical prohibition on employer use of automated decision tools for employment-related decisions. The only exception is for screening large volumes of job applications to identify candidates who meet set hiring criteria or to assess candidates based on job skills. This is far more restrictive than most state automated decision tool statutes, which typically regulate rather than prohibit such tools — making this one of the most aggressive automated employment decision restrictions proposed in any U.S. state.

Compliance actions 1 item
1
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must not use an automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to make any employment-related decisionEmployment-related decision"Employment-related decision" means any decision made by an employer that affects wages, benefits, other compensation, hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job content, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, and other terms or conditions of employment. For an independent contractor or applicant for employment, employment-related decisions means the equivalent of these decisions based on the independent contractor's or candidate's contract with or relationship to the employer.Sec. 3(k), except to screen large volumes of job applications to (a) identify candidates who meet set hiring criteria or (b) assess candidates based on job skills. All other uses of automated decision tools for employment decisions — including for wages, benefits, scheduling, performance evaluation, discipline, promotion, termination, and work assignment — are prohibited.
Sec. 5
Restrictions on electronic monitoring and data collection
Deployer

(1)–(2) 2 Sec. 5. (1) Except as provided in this act, an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall not use an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to collect a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d). (2) An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) may use an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) for only the following purposes: (a) To allow an employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) to accomplish or facilitate an essential job function. (b) To monitor production processes or quality. (c) To periodically assess an employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i)'s performance. (d) To ensure or facilitate compliance with state or federal labor or employment law. (e) To protect the health, safety, or security of covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c). (f) To administer wages and benefits, if it can be determined that the electronic monitoring system uses only dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) regarding the city where the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) works and the costs of living in that area. (g) To accomplish any other purpose that enables business operations as determined by the departmentDepartment"Department" means the department of labor and economic opportunity.Sec. 3(e).

(3) 3 An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) that uses an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) must do all of the following: (a) Provide written notice that the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) is using an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to all covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) who are subject to the tool. (b) Obtain written consent from each covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) to electronically monitor or use an automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) on the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) in accordance with this act. (c) Ensure that dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through the electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) is accurate and up to date. (d) Allow a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) to correct inaccurate dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) about that covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c). (e) Use the tool in a narrowly tailored manner to accomplish a purpose described in subsection (2) or section 4(2). (f) Use the tool through the least invasive means possible for the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) whom the tool monitors. (g) Ensure the tool applies to the smallest number of covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c), collects the least amount of dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d), and is used no more frequently than necessary to accomplish a purpose described in subsection (2) or section 4(2). (h) Ensure that the tool does not collect any data of an employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) when the employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) is off duty.

(4) 4 An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) that uses an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) for a purpose described in subsection (2) or an automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) for a purpose described in section 4(2) shall not do any of the following: (a) Collect any of the following data of a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c): (i) Health, medical, lifestyle, and wellness information, including, but not limited to, the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s medical history, physical or mental condition, diet or physical activity patterns, heart rate, medical treatment or diagnosis by a health care professional, health insurance policy number, subscriber identification number, or other unique identifier used to identify the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c). (ii) A qualified characteristicQualified characteristic"Qualified characteristic" means an individual's race, color, religious creed, national origin, disability, sex, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, including, but not limited to, lactation or the need to express breast milk for a nursing child, ancestry, or status as a veteran.Sec. 3(o). (iii) Information related to workplace activities, including, but not limited, all of the following: (A) Human resources information, including contents of a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s personnel file or performance evaluations. (B) Work process information, such as productivity and efficiency information. (C) Information that captures workplace communications and interactions, including emails, texts, internal message boards, and customer interaction and ratings. (D) Device usage, including calls placed or geolocation information. (E) Audio-video information and other information collected from sensors, including movement tracking, thermal sensors, voiceprints, or facial, emotion, and gait recognition. (F) Inputs of or outputs generated by an automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) that are linked to a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c). (G) Online information, including a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s internet protocol address, private social media activity, or other digital sources or unique identifiers associated with a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c). (b) Identify, punish, or obtain dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) about a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) who engages in an activity that is protected under state or federal labor or employment law. (c) Monitor bathrooms or other similar private areas, including, but not limited to, locker rooms, changing areas, breakrooms, smoking areas, employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) cafeterias, lounges, areas designated to express breast milk, or areas designated for prayer or other religious activity. The prohibition under this subdivision includes dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collection on the frequency of use of those private areas and conducting audio or visual monitoring of a workplace in an employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i)'s residence, an employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i)'s personal vehicle, or property owned or leased by an employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i).

(5) 5 An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall not use an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) that is equipped with facial, gait, voice, or emotion recognition technology.

Section 5 prohibits employers from using electronic monitoring tools or automated decision tools to collect covered individuals' data except for seven enumerated purposes. Even when use is permitted, employers must satisfy eight cumulative procedural safeguards: written notice, written consent, data accuracy, data correction rights, narrow tailoring, least-invasive means, data minimization, and no off-duty monitoring. Subsection (4) enumerates categories of data that may never be collected, including health information, qualified characteristics, biometric data (facial, gait, voice, emotion recognition), and workplace communications. Subsection (5) imposes a standalone absolute prohibition on tools equipped with facial, gait, voice, or emotion recognition technology.

Compliance actions 4 items
2
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must not use an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to collect a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) except for the following enumerated purposes: (a) to allow an employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) to accomplish or facilitate an essential job function, (b) to monitor production processes or quality, (c) to periodically assess employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) performance, (d) to ensure or facilitate compliance with state or federal labor or employment law, (e) to protect the health, safety, or security of covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c), (f) to administer wages and benefits using only dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) regarding the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s work city and cost of living, or (g) to accomplish any other purpose that enables business operations as determined by the Department of Labor and Economic Opportunity.
D-01.4
3
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) using an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) must: (a) provide written notice to all covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) subject to the tool; (b) obtain written consent from each covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c); (c) ensure that collected dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) is accurate and up to date; (d) allow covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) to correct inaccurate dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) about themselves; (e) use the tool in a narrowly tailored manner to accomplish only a permitted purpose; (f) use the tool through the least invasive means possible; (g) ensure the tool applies to the smallest number of covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c), collects the least amount of dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d), and is used no more frequently than necessary; and (h) ensure the tool does not collect any employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) when the employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) is off duty.
D-01.1
4
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) using electronic monitoring toolsElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolsAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) must not: (a) collect health, medical, lifestyle, or wellness information; qualified characteristicsQualified characteristic"Qualified characteristic" means an individual's race, color, religious creed, national origin, disability, sex, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, including, but not limited to, lactation or the need to express breast milk for a nursing child, ancestry, or status as a veteran.Sec. 3(o); or information related to workplace activities (including HR information, productivity dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d), workplace communications, device usage, geolocation, audio-video or sensor dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) including biometric recognition, automated tool inputs/outputs linked to individuals, or online activity); (b) identify, punish, or obtain dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) about a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) engaged in activity protected under state or federal labor or employment law; or (c) monitor bathrooms, locker rooms, changing areas, breakrooms, smoking areas, cafeterias, lounges, lactation areas, or prayer areas — including monitoring frequency of use of those areas and monitoring a workplace in an employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i)'s residence, personal vehicle, or personal property.
D-01.5
5
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must not use any electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) that is equipped with facial recognition, gait recognition, voice recognition, or emotion recognition technology.
S-02.2
Sec. 7
Data retention, sale, and sharing restrictions
Deployer

(1) 6 Sec. 7. (1) An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) that collects a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) shall retain the dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) for not more than 3 years after the date on which the purpose for using the electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) is achieved, unless otherwise specified by a collective bargaining agreement. If the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) does not use any specific data of a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must delete that dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) immediately.

(2) 7 An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall not sell or license a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d), including, but not limited to, dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) that is deidentified or aggregated.

(3) 8 An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall not share dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected under section 4 or 5 with this state or a local unit of government unless otherwise necessary to do any of the following: (a) Provide information to the departmentDepartment"Department" means the department of labor and economic opportunity.Sec. 3(e). (b) Comply with the requirements of federal, state, or local law. (c) Comply with a court-issued subpoena, warrant, or order.

Section 7 imposes data governance obligations on employers that collect covered individuals' data through electronic monitoring or automated decision tools. Employers must delete data no more than 3 years after the tool's purpose is achieved (unless modified by a collective bargaining agreement) and must immediately delete unused data. The section categorically prohibits selling or licensing covered individual data, including deidentified or aggregated data — an unusually broad prohibition. Data sharing with state or local government is restricted to department reporting, legal compliance, and court orders.

Compliance actions 3 items
6
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must retain dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) for no more than 3 years after the purpose for using the tool is achieved, unless otherwise specified by a collective bargaining agreement. If the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) does not use any specific data of a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must delete that dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) immediately.
D-01.4
7
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must not sell or license a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), including deidentified or aggregated dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d).
D-01.4
8
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must not share dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through electronic monitoring or automated decision tools with the state or a local unit of government unless necessary to (a) provide information to the Department of Labor and Economic Opportunity, (b) comply with federal, state, or local law requirements, or (c) comply with a court-issued subpoena, warrant, or order.
D-01.4
Sec. 9
Impact assessment requirements
DeployerDeveloper

(1) 9 Sec. 9. (1) Before an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) uses an automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) under section 4 or an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) under section 5, the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall conduct an impact assessment of the tool that meets all of the following requirements: (a) Evaluates the tool's objectives, algorithms, dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d), cybersecurity vulnerabilities, and potential biases, including, but not limited to, discriminatory outcomes based on race, gender, or disability. (b) Is conducted 1 year before the tool is implemented, or, for a tool already in use on the effective date of this act, not more than 6 months after the effective date of this act. (c) Is conducted by an independent and impartial third party with no financial or legal conflicts of interests related to the use of the tool. (d) Identifies and describes the attributes and modeling techniques that the tool uses to produce outputs. (e) Evaluates whether the attributes and modeling techniques described in subdivision (d) are a scientifically valid means of evaluating a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s performance or ability to perform the essential functions of a role, and whether those attributes may function as a proxy for belonging to a protected class under the Elliot-Larsen civil rights act, 1976 PA 453, MCL 37.2101 to 37.2804. (f) Considers, identifies, and describes both of the following that may result in a disparate impact on a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) based on the covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s qualified characteristicQualified characteristic"Qualified characteristic" means an individual's race, color, religious creed, national origin, disability, sex, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, including, but not limited to, lactation or the need to express breast milk for a nursing child, ancestry, or status as a veteran.Sec. 3(o), and what actions may be taken by the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) to reduce or remedy any disparate impact. (i) Any disparities in the dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) used to train or develop the tool. (ii) Any outputs produced by the tool. (g) Evaluates whether the use of the tool may limit accessibility for covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) with disabilities, or for covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) with any specific disability, and what actions may be taken by the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) to reduce or remedy the limit on accessibility. (h) Considers and describes potential sources of adverse impact against covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) or groups based on a qualified characteristicQualified characteristic"Qualified characteristic" means an individual's race, color, religious creed, national origin, disability, sex, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, including, but not limited to, lactation or the need to express breast milk for a nursing child, ancestry, or status as a veteran.Sec. 3(o) that may arise after the tool is implemented. (i) Identifies and describes any other assessment of risks of discrimination or a disparate impact of the tool on covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) or groups based on a qualified characteristicQualified characteristic"Qualified characteristic" means an individual's race, color, religious creed, national origin, disability, sex, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, including, but not limited to, lactation or the need to express breast milk for a nursing child, ancestry, or status as a veteran.Sec. 3(o), and what actions may be taken to reduce or remedy that risk. (j) For any finding of a disparate impact or limit on accessibility, evaluates whether the dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) set, attribute, or feature of the tool at issue is the least discriminatory method of assessing a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s performance or ability to perform job functions. (k) Considers and describes any other ways in which the tool could result in a violation of applicable law and, for any finding that a violation of law may occur, any necessary or appropriate steps to prevent a violation. (l) Considers and describes whether use of the tool may negatively affect a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s privacy or job quality, including wages, hours, and working conditions.

(2) 10 Not more than 60 days after an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) completes an assessment, the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall do both of the following: (a) Submit the assessment in its entirety or in an accessible summary form to the departmentDepartment"Department" means the department of labor and economic opportunity.Sec. 3(e) for the departmentDepartment"Department" means the department of labor and economic opportunity.Sec. 3(e) to include in a public registry of impact assessments. (b) Distribute the assessment to covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) who may be subject to the tool.

(3) 11 An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall conduct or commission subsequent impact assessments each year in which the electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) is in use. Subsequent impact assessments must comply with the requirements of subsection (1), as applicable, and must assess and describe any change in the validity or disparate impact of the tool.

(4)–(7) 12 An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall retain all documentation pertaining to the design, development, use, and data of an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) that may be necessary to conduct an impact assessment. The documentation includes, but is not limited to, the source of the dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) used to develop the tool, the technical specifications of the tool, individuals involved in the development of the tool, historical use dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) for the tool, and a historical record of the versions of the tool the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) uses. (5) A service provider that contracts with an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) to provide electronic monitoring or automated decisions shall allow the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) access to the documentation described in subsection (4). (6) An employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall share the documentation described in subsection (4) with a labor organizationLabor organization"Labor organization" means either of the following: (i) Labor organization as that term is defined in section 2 of 1939 PA 176, MCL 423.2. (ii) Bargaining representative as that term is defined in section 1 of 1947 PA 336, MCL 423.201.Sec. 3(l) as required under law or as required by a court or agency in connection with any employment or labor litigation to which the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) is a party. (7) The documentation described in subsection (4) must be stored in manner as prescribed by the directorDirector"Director" means the director of the department or the director's designee.Sec. 3(g). The directorDirector"Director" means the director of the department or the director's designee.Sec. 3(g) shall prescribe the manner so that the documentation is legible and accessible to the party that conducts an impact assessment of the tool.

Section 9 requires employers to conduct comprehensive impact assessments before using any automated decisions tool or electronic monitoring tool. Assessments must be conducted by an independent, impartial third party with no financial or legal conflicts of interest. The assessment must evaluate the tool's objectives, algorithms, data, cybersecurity vulnerabilities, potential biases, proxy-variable risks under the Elliott-Larsen Civil Rights Act, disparate impact on qualified characteristics, disability accessibility, and potential privacy or job-quality effects. Assessments must be submitted to the Department of Labor and Economic Opportunity for inclusion in a public registry and distributed to affected covered individuals. Annual reassessments are required. Service providers must give employers access to all documentation necessary for the assessment.

Compliance actions 4 items
9
Before using any automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) or electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h), employersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must commission an impact assessment by an independent and impartial third party with no financial or legal conflicts of interest. The assessment must be conducted one year before implementation (or within 6 months of the act's effective date for tools already in use) and must: (a) evaluate the tool's objectives, algorithms, dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d), cybersecurity vulnerabilities, and potential biases including discriminatory outcomes based on race, gender, or disability; (b) identify the attributes and modeling techniques the tool uses; (c) evaluate whether those attributes are scientifically valid means of evaluating performance and whether they may function as proxies for protected classes under the Elliott-Larsen Civil Rights Act; (d) identify disparate-impact risks in training dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) and outputs and describe remedial actions; (e) evaluate disability accessibility limitations and describe remedies; (f) describe potential sources of post-implementation adverse impact; (g) assess whether any feature causing disparate impact is the least discriminatory method available; (h) identify other potential legal violations and steps to prevent them; and (i) describe potential negative effects on privacy, wages, hours, and working conditions.
H-02.1
10
Within 60 days of completing an impact assessment, employersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must (a) submit the assessment in its entirety or in an accessible summary form to the Department of Labor and Economic Opportunity for inclusion in a public registry of impact assessments, and (b) distribute the assessment to all covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) who may be subject to the tool.
H-02.4
11
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must conduct or commission subsequent impact assessments annually for each year in which an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) is in use. Annual assessments must meet the same requirements as the initial assessment and must assess and describe any change in the tool's validity or disparate impact.
H-02.8
12
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must retain all documentation pertaining to the design, development, use, and dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) of electronic monitoring toolsElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) and automated decisions toolsAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) that may be necessary to conduct an impact assessment, including the dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) source, technical specifications, individuals involved in development, historical use dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d), and version history. Service providers must allow employersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) access to this documentation. EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must share the documentation with labor organizationsLabor organization"Labor organization" means either of the following: (i) Labor organization as that term is defined in section 2 of 1939 PA 176, MCL 423.2. (ii) Bargaining representative as that term is defined in section 1 of 1947 PA 336, MCL 423.201.Sec. 3(l) as required by law or court order. Documentation must be stored in a manner prescribed by the directorDirector"Director" means the director of the department or the director's designee.Sec. 3(g) to ensure legibility and accessibility for assessment purposes.
G-01.3
Sec. 11
Security breach response obligations
Deployer

(1)(a)–(b) 13 Sec. 11. (1) If an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) has a security breach of dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must do all of the following: (a) Promptly secure the electronic monitoring systems or automated decisions toolsAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), mitigate harm, and certify that corrective steps were taken. (b) Not more than 48 hours after the discovery of the security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n), provide notice of the security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n) to all of the covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) whose dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) is affected by the security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n). The notice must include all of the following: (i) A summary of how the breach occurred. (ii) The specific dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) that was compromised, if known. (iii) How the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) is responding to the security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n). (iv) Information on any necessary steps the employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) can take to help secure the employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i)'s dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) or apply for employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)-covered protections under subdivision (c).

(1)(c) 14 Provide all of the following to the covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) whose dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) is affected by the security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n): (i) Ten years of paid premium identity theft protection and insurance, including, but not limited to, an insurance policy of not less than $5,000,000.00 that covers financial loss, expense reimbursement, and legal fees for each affected covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c). (ii) Comprehensive credit monitoring that also covers a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c)'s dependentsDependent"Dependent" means an individual who receives more than 1/2 of the individual's cost of support from the income of a covered individual, including any of the following of the covered individual: (i) Child, stepchild, adopted child, or grandchild, if the individual meets any of the following conditions: (A) Is younger than 18 years of age. (B) Is older than 18 years of age and because the individual has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The individual is younger than 22 years of age and is a full-time student. (ii) Spouse. (iii) Parent if the parent is older than 65 years of age or is unable to engage in gainful employment. (iv) Sibling if the sibling meets any of the following conditions: (A) Is younger than 18 years of age and is orphaned or the living parents of the sibling are dependent parents to the covered individual. (B) Is older than 18 years of age and because the sibling has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The sibling is younger than 22 years of age and is a full-time student.Sec. 3(f) if the dependentsDependent"Dependent" means an individual who receives more than 1/2 of the individual's cost of support from the income of a covered individual, including any of the following of the covered individual: (i) Child, stepchild, adopted child, or grandchild, if the individual meets any of the following conditions: (A) Is younger than 18 years of age. (B) Is older than 18 years of age and because the individual has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The individual is younger than 22 years of age and is a full-time student. (ii) Spouse. (iii) Parent if the parent is older than 65 years of age or is unable to engage in gainful employment. (iv) Sibling if the sibling meets any of the following conditions: (A) Is younger than 18 years of age and is orphaned or the living parents of the sibling are dependent parents to the covered individual. (B) Is older than 18 years of age and because the sibling has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The sibling is younger than 22 years of age and is a full-time student.Sec. 3(f)' dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) is compromised. (iii) Dark web monitoring. (iv) Account breach alerts. (v) A 3-bureau credit freeze. (vi) Expert fraud remediation that is based in the United States. (vii) Social Security number monitoring and the cost of reissuance. (viii) Bank fraud and financial transaction monitoring.

(1)(d) 15 Provide notice of the security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n) to the departmentDepartment"Department" means the department of labor and economic opportunity.Sec. 3(e) and the attorney general.

(2) 16 After a security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n) has occurred as described in subsection (1), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must contract with a third party to perform an audit of the electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to ensure that any vulnerabilities have been fixed.

Section 11 imposes extensive security breach response obligations on employers whose electronic monitoring or automated decision tool data is breached. Within 48 hours of discovering a breach, employers must notify all affected covered individuals with a detailed summary. Employers must provide affected individuals with 10 years of premium identity theft protection, a $5 million insurance policy, comprehensive credit monitoring extending to dependents, dark web monitoring, account breach alerts, credit freezes, U.S.-based fraud remediation, Social Security number monitoring, and bank fraud monitoring. The employer must also notify the department and attorney general, and must contract with a third party to audit the compromised tool. These requirements are among the most extensive security breach remediation obligations in any U.S. employment technology statute.

Compliance actions 4 items
13
If a security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n) occurs involving dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must (a) promptly secure the affected systems, mitigate harm, and certify that corrective steps were taken; and (b) within 48 hours of discovering the breach, notify all affected covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) with a notice that includes: (i) a summary of how the breach occurred, (ii) the specific dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) compromised (if known), (iii) how the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) is responding, and (iv) steps the individual can take to secure their dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) or apply for employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)-covered protections.
R-01.1
14
Following a security breach of dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must provide all affected covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) with: (i) 10 years of paid premium identity theft protection and insurance including a policy of not less than $5,000,000 per affected individual covering financial loss, expense reimbursement, and legal fees; (ii) comprehensive credit monitoring also covering dependentsDependent"Dependent" means an individual who receives more than 1/2 of the individual's cost of support from the income of a covered individual, including any of the following of the covered individual: (i) Child, stepchild, adopted child, or grandchild, if the individual meets any of the following conditions: (A) Is younger than 18 years of age. (B) Is older than 18 years of age and because the individual has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The individual is younger than 22 years of age and is a full-time student. (ii) Spouse. (iii) Parent if the parent is older than 65 years of age or is unable to engage in gainful employment. (iv) Sibling if the sibling meets any of the following conditions: (A) Is younger than 18 years of age and is orphaned or the living parents of the sibling are dependent parents to the covered individual. (B) Is older than 18 years of age and because the sibling has physical or mental infirmity, the individual is unable to engage in gainful employment. (C) The sibling is younger than 22 years of age and is a full-time student.Sec. 3(f) if their dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) was compromised; (iii) dark web monitoring; (iv) account breach alerts; (v) a 3-bureau credit freeze; (vi) U.S.-based expert fraud remediation; (vii) Social Security number monitoring and cost of reissuance; and (viii) bank fraud and financial transaction monitoring.
15
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must notify the Department of Labor and Economic Opportunity and the attorney general of any security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n) involving dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b).
R-01.1
16
After a security breachSecurity breach"Security breach" means the unauthorized access and acquisition of data that compromises the security or confidentiality of personal information maintained by a person or agency as part of a database of personal information regarding multiple individuals.Sec. 3(n), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must contract with a third party to perform an audit of the compromised electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to ensure that all vulnerabilities have been fixed.
G-01.5
Sec. 13
Notice, posting, and opt-out requirements
Deployer

(1) 17 Sec. 13. (1) If an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) uses an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must display a poster at the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s place of business, in a conspicuous place accessible to the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i), that includes, but is not limited to, notice of the use of an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b).

(2)–(3) 18 Not less than 30 days before an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) implements an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall provide notice, in writing, of the tool's use to all of the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i). The employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall also include the notice in every job posting, post the notice on the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s website, provide the notice directly to every applicantApplicant"Applicant" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employer.Sec. 3(a), and make the notice available in accessible formats that account for the applicantApplicant"Applicant" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employer.Sec. 3(a)'s first language, if it is not English, and any disability the applicantApplicant"Applicant" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employer.Sec. 3(a) may have. The notice must provide a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) with the ability to opt out of the electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b). (3) If a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) opts out of the use of an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) under subsection (2), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) shall not use the electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) to make any employment-related decisionsEmployment-related decision"Employment-related decision" means any decision made by an employer that affects wages, benefits, other compensation, hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job content, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, and other terms or conditions of employment. For an independent contractor or applicant for employment, employment-related decisions means the equivalent of these decisions based on the independent contractor's or candidate's contract with or relationship to the employer.Sec. 3(k) for that covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c).

Section 13 imposes detailed notice obligations on employers using electronic monitoring or automated decision tools. Employers must display a workplace poster, provide written notice at least 30 days before implementing any tool, include the notice in every job posting, post it on the employer's website, provide it directly to every applicant, and make it available in accessible formats accounting for language and disability. The notice must include the ability for covered individuals to opt out, and if a covered individual opts out, the employer must not use the tool for employment-related decisions concerning that individual.

Compliance actions 2 items
17
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) using an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) must display a poster at the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s place of business, in a conspicuous place accessible to employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i), that provides notice of the use of the tool.
D-01.1
18
At least 30 days before implementing an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), employersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must provide written notice of the tool's use to all employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i). EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must also include the notice in every job posting, post it on the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s website, provide it directly to every applicantApplicant"Applicant" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employer.Sec. 3(a), and make it available in accessible formats accounting for the applicantApplicant"Applicant" means an individual who applies or applied to be employed by, or otherwise perform work for remuneration for, an employer.Sec. 3(a)'s first language (if not English) and any disability. The notice must provide covered individualsCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) with the ability to opt out. If a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) opts out, the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must not use the tool for any employment-related decisionsEmployment-related decision"Employment-related decision" means any decision made by an employer that affects wages, benefits, other compensation, hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job content, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, and other terms or conditions of employment. For an independent contractor or applicant for employment, employment-related decisions means the equivalent of these decisions based on the independent contractor's or candidate's contract with or relationship to the employer.Sec. 3(k) concerning that individual.
D-01.1
Sec. 15
Enforcement, remedies, and civil sanctions

(1)–(2) Sec. 15. (1) A covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) aggrieved by a violation of this act, or a personPerson"Person" means an individual or a partnership, corporation, limited liability company, association, governmental entity, or other legal entity.Sec. 3(m) acting on behalf of a covered individualCovered individual"Covered individual" means an individual who is either of the following: (i) An employee. (ii) An applicant.Sec. 3(c) aggrieved by a violation of this act, including, but not limited to, a labor organizationLabor organization"Labor organization" means either of the following: (i) Labor organization as that term is defined in section 2 of 1939 PA 176, MCL 423.2. (ii) Bargaining representative as that term is defined in section 1 of 1947 PA 336, MCL 423.201.Sec. 3(l), may bring an action for damages, injunctive relief, or both. A court may award economic damages, noneconomic damages, or both plus costs and attorney fees to a plaintiff who prevails in an action brought under this section. (2) A personPerson"Person" means an individual or a partnership, corporation, limited liability company, association, governmental entity, or other legal entity.Sec. 3(m) that violates this act is subject to a civil fine of not more than $500.00. The prosecutor of the county in which the violation occurred or the attorney general may bring an action to collect the fine. The court may issue an injunction to enforce compliance with this act and award costs and reasonable attorney fees for the action.

Section 15 creates the bill's enforcement framework. Subsection (1) establishes a private right of action for any aggrieved covered individual — or a person acting on their behalf, including a labor organization — to bring an action for damages, injunctive relief, or both. Courts may award economic damages, noneconomic damages, costs, and attorney fees. Subsection (2) authorizes civil fines of up to $500 per violation, collectible by the county prosecutor or attorney general, with injunctive relief, costs, and attorney fees also available in public enforcement actions.

Sec. 17
Collective bargaining rights and protections
Deployer

(1) This act provides minimum standards for the use of an electronic monitoring or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b) and must not be construed to preempt, diminish, or interfere with the right of employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) to collectively bargain under section 30 of 1939 PA 176, MCL 423.30 or section 15 of 1947 PA 336, MCL 423.215, over the terms and conditions of employment, including, but not limited to, protections against surveillance-based wage discrimination.

(2) 19 If an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) are covered by a collective bargaining act in effect on the effective date of this act and the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) intends to use an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must provide notice of the use in accordance with section 13 and an opportunity to bargain over the intended use of the tool to set or influence employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) wages or other terms and conditions of employment.

(3) 20 If an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) are covered by a collective bargaining agreement in effect on the effective date of this act, not less than 30 days before the start of any collective bargaining, the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) must provide the employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i)' bargaining representative with necessary information for bargaining, including, but not limited to, dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected, impact assessments, and dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) breaches that have occurred.

(4)–(5) Any rights or protections negotiated through a collective bargaining agreement that exceed the requirements of this act are fully enforceable and must not be considered waived or precluded by compliance with this act. (5) This act does not diminish an employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s obligation to provide advance notice to and to engage in good-faith negotiations with a labor organizationLabor organization"Labor organization" means either of the following: (i) Labor organization as that term is defined in section 2 of 1939 PA 176, MCL 423.2. (ii) Bargaining representative as that term is defined in section 1 of 1947 PA 336, MCL 423.201.Sec. 3(l) that represents any portion of the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j)'s employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) before the employerEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) implements an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b).

Section 17 preserves and reinforces collective bargaining rights in the context of employer use of electronic monitoring and automated decision tools. The act establishes minimum standards that cannot preempt, diminish, or interfere with employees' rights to bargain collectively. Employers with unionized workforces must provide notice and an opportunity to bargain over intended use of these tools. Before collective bargaining begins, employers must share collected data, impact assessments, and breach information with the bargaining representative. Rights negotiated through collective bargaining that exceed the act's requirements are fully enforceable.

Compliance actions 2 items
19
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) whose employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) are covered by a collective bargaining agreement must, before using an electronic monitoring toolElectronic monitoring tool"Electronic monitoring tool" means any system that facilitates the collection of data concerning a covered individual's activities or communications by any means other than direct observation, including the use of a computer, telephone, wire, radio, camera, electromagnetic, photoelectronic, or photo-optical system.Sec. 3(h) or automated decisions toolAutomated decisions tool"Automated decisions tool" means any computational process, including, but not limited to, computational processes derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified outputs, including, but not limited to, a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that affect a covered individual.Sec. 3(b), provide notice of the intended use in accordance with Section 13 and provide an opportunity to bargain over the use of the tool to set or influence employeeEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) wages or other terms and conditions of employment.
20
EmployersEmployer"Employer" means a person that employs, or otherwise engages for the performance of work for remuneration, 1 or more individuals in this state. Employer includes a third party or service provider that an employer uses for electronic monitoring or employment-related decisions.Sec. 3(j) whose employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i) are covered by a collective bargaining agreement must, at least 30 days before the start of any collective bargaining, provide the employeesEmployee"Employee" means an individual, or an authorized representative acting on behalf of an individual, who is employed by, or is an independent contractor who provides service to, or through, an employer that operates in the state.Sec. 3(i)' bargaining representative with necessary information for bargaining, including dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) collected through monitoring or automated decision tools, impact assessments, and any dataData"Data" means recorded information regardless of the form or the media on which the information is recorded.Sec. 3(d) breaches that have occurred.
Sec. 19
Rulemaking authority

Sec. 19. The department of labor and economic opportunity shall promulgate rules to implement this act under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

Section 19 directs the Department of Labor and Economic Opportunity to promulgate rules to implement the act under Michigan's Administrative Procedures Act. This is a delegation of rulemaking authority and creates no direct compliance obligation for employers.

Passage Likelihood

Low
Status Introduced
Chamber No passage
Committee No action
Majority party Yes
Bipartisan No
Prior session None

Legislative History

2026-02-24 Introduced By Representative Rep. Penelope Tsernoglou
2026-02-24 Read A First Time
2026-02-24 Referred To Committee On Economic Competitiveness
2026-02-26 Bill Electronically Reproduced 02/24/2026

Entry Last Reviewed

2026-05-20
AI generated