Minnesota · House File · Ninety-Fourth Session
HF3794
Minnesota HF 3794 — Prohibition on Surveillance-Based Price and Wage Discrimination

Status ● Introduced Effective Aug 1, 2026 Passage Likelihood L

WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
No enforcement mechanism is specified in the bill text. The bill is codified in Minnesota Statutes chapter 325D (Uniform Deceptive Trade Practices), which is enforced by the Minnesota Attorney General. No private right of action is expressly created.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
The bill does not specify penalties, damages, or remedies. Enforcement and remedies would depend on the existing enforcement framework of Minnesota Statutes chapter 325D.

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
Minn. Stat. § 325D.141, subd. 1
Definitions

(a)–(o) For purposes of this section, the following terms have the meanings given. (b) "Automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b)" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) does not include passive computing infrastructure. (c) "BehaviorsBehaviors"Behaviors" means an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including the individual's political, personal, or professional affiliations, web-browsing history, IP addresses used, locations frequented, purchase history, financial circumstances, consumer behaviors, or inferences associated with a group, band, class, or tier of individuals in which the individual belongs.Minn. Stat. § 325D.141, subd. 1(c)" means an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including the individual's political, personal, or professional affiliations, web-browsing history, IP addresses used, locations frequented, purchase history, financial circumstances, consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) behaviorsBehaviors"Behaviors" means an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including the individual's political, personal, or professional affiliations, web-browsing history, IP addresses used, locations frequented, purchase history, financial circumstances, consumer behaviors, or inferences associated with a group, band, class, or tier of individuals in which the individual belongs.Minn. Stat. § 325D.141, subd. 1(c), or inferences associated with a group, band, class, or tier of individuals in which the individual belongs. (d) "BiometricsBiometrics"Biometrics" means data or information that is generated by technologically processing, measuring, or analyzing a consumer's or worker's biological, physical, or behavioral characteristics from which data or information can be processed for the purpose of uniquely identifying an individual. Biometrics includes: (1) a fingerprint; (2) a voiceprint; (3) a scan or record of an eye retina or iris; (4) a facial map, facial geometry, or facial template; (5) genetic information; or (6) other unique biological, physical, or behavioral patterns or characteristics.Minn. Stat. § 325D.141, subd. 1(d)" means data or information that is generated by technologically processing, measuring, or analyzing a consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e)'s or workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o)'s biological, physical, or behavioral characteristics from which data or information can be processed for the purpose of uniquely identifying an individual. BiometricsBiometrics"Biometrics" means data or information that is generated by technologically processing, measuring, or analyzing a consumer's or worker's biological, physical, or behavioral characteristics from which data or information can be processed for the purpose of uniquely identifying an individual. Biometrics includes: (1) a fingerprint; (2) a voiceprint; (3) a scan or record of an eye retina or iris; (4) a facial map, facial geometry, or facial template; (5) genetic information; or (6) other unique biological, physical, or behavioral patterns or characteristics.Minn. Stat. § 325D.141, subd. 1(d) includes: (1) a fingerprint; (2) a voiceprint; (3) a scan or record of an eye retina or iris; (4) a facial map, facial geometry, or facial template; (5) genetic informationGenetic information"Genetic information" has the meaning given in section 13.386, subdivision 1, paragraph (a).Minn. Stat. § 325D.141, subd. 1(f); or (6) other unique biological, physical, or behavioral patterns or characteristics. (e) "ConsumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e)" means an individual who buys goods for personal, family, or household purposes. (f) "Genetic informationGenetic information"Genetic information" has the meaning given in section 13.386, subdivision 1, paragraph (a).Minn. Stat. § 325D.141, subd. 1(f)" has the meaning given in section 13.386, subdivision 1, paragraph (a). (g) "IndividualizedIndividualized"Individualized" means specific to or inferred about an individual or group, band, class, or tier of individuals that possess particular personal characteristics, behaviors, or biometrics.Minn. Stat. § 325D.141, subd. 1(g)" means specific to or inferred about an individual or group, band, class, or tier of individuals that possess particular personal characteristicsPersonal characteristics"Personal characteristics" means individual qualities, features, attributes, or traits, including immutable characteristics such as race and eye color; mutable characteristics such as address, weight, citizenship, or parenthood status; and any other personal identifying information that could be used to uncover an individual's identity, including a Social Security number, full name, or phone number.Minn. Stat. § 325D.141, subd. 1(i), behaviorsBehaviors"Behaviors" means an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including the individual's political, personal, or professional affiliations, web-browsing history, IP addresses used, locations frequented, purchase history, financial circumstances, consumer behaviors, or inferences associated with a group, band, class, or tier of individuals in which the individual belongs.Minn. Stat. § 325D.141, subd. 1(c), or biometricsBiometrics"Biometrics" means data or information that is generated by technologically processing, measuring, or analyzing a consumer's or worker's biological, physical, or behavioral characteristics from which data or information can be processed for the purpose of uniquely identifying an individual. Biometrics includes: (1) a fingerprint; (2) a voiceprint; (3) a scan or record of an eye retina or iris; (4) a facial map, facial geometry, or facial template; (5) genetic information; or (6) other unique biological, physical, or behavioral patterns or characteristics.Minn. Stat. § 325D.141, subd. 1(d). (h) "InsurerInsurer"Insurer" means an insurance company as defined under section 60A.02, subdivision 4.Minn. Stat. § 325D.141, subd. 1(h)" means an insurance company as defined under section 60A.02, subdivision 4. (i) "Personal characteristicsPersonal characteristics"Personal characteristics" means individual qualities, features, attributes, or traits, including immutable characteristics such as race and eye color; mutable characteristics such as address, weight, citizenship, or parenthood status; and any other personal identifying information that could be used to uncover an individual's identity, including a Social Security number, full name, or phone number.Minn. Stat. § 325D.141, subd. 1(i)" means individual qualities, features, attributes, or traits, including immutable characteristics such as race and eye color; mutable characteristics such as address, weight, citizenship, or parenthood status; and any other personal identifying information that could be used to uncover an individual's identity, including a Social Security number, full name, or phone number. (j) "PricePrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs, fees, and other material terms of the transaction that have a direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Minn. Stat. § 325D.141, subd. 1(j)" means the amount charged to a consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) in relation to a transaction, including all related costs, fees, and other material terms of the transaction that have a direct bearing on the amount paid by the consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) or the value of the good or service offered or provided to the consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e). (k) "Surveillance-based price discriminationSurveillance-based price discrimination"Surveillance-based price discrimination" means using an automated decision system to inform individualized prices based on surveillance data regarding a consumer.Minn. Stat. § 325D.141, subd. 1(k)" means using an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) to inform individualizedIndividualized"Individualized" means specific to or inferred about an individual or group, band, class, or tier of individuals that possess particular personal characteristics, behaviors, or biometrics.Minn. Stat. § 325D.141, subd. 1(g) pricesPrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs, fees, and other material terms of the transaction that have a direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Minn. Stat. § 325D.141, subd. 1(j) based on surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or worker that is related to personal characteristics, behaviors, or biometrics of the individual or a group, band, class, or tier in which the individual belongs. Surveillance data includes information gathered, purchased, or otherwise acquired.Minn. Stat. § 325D.141, subd. 1(m) regarding a consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e). (l) "Surveillance-based wage discriminationSurveillance-based wage discrimination"Surveillance-based wage discrimination" means using an automated decision system to inform individualized wages based on surveillance data regarding a worker.Minn. Stat. § 325D.141, subd. 1(l)" means using an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) to inform individualizedIndividualized"Individualized" means specific to or inferred about an individual or group, band, class, or tier of individuals that possess particular personal characteristics, behaviors, or biometrics.Minn. Stat. § 325D.141, subd. 1(g) wagesWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n) based on surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or worker that is related to personal characteristics, behaviors, or biometrics of the individual or a group, band, class, or tier in which the individual belongs. Surveillance data includes information gathered, purchased, or otherwise acquired.Minn. Stat. § 325D.141, subd. 1(m) regarding a workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o). (m) "Surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or worker that is related to personal characteristics, behaviors, or biometrics of the individual or a group, band, class, or tier in which the individual belongs. Surveillance data includes information gathered, purchased, or otherwise acquired.Minn. Stat. § 325D.141, subd. 1(m)" means data obtained through observation, inference, or surveillance of a consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) or workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) that is related to personal characteristicsPersonal characteristics"Personal characteristics" means individual qualities, features, attributes, or traits, including immutable characteristics such as race and eye color; mutable characteristics such as address, weight, citizenship, or parenthood status; and any other personal identifying information that could be used to uncover an individual's identity, including a Social Security number, full name, or phone number.Minn. Stat. § 325D.141, subd. 1(i), behaviorsBehaviors"Behaviors" means an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including the individual's political, personal, or professional affiliations, web-browsing history, IP addresses used, locations frequented, purchase history, financial circumstances, consumer behaviors, or inferences associated with a group, band, class, or tier of individuals in which the individual belongs.Minn. Stat. § 325D.141, subd. 1(c), or biometrics of the individual or a group, band, class, or tier in which the individual belongs. Surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or worker that is related to personal characteristics, behaviors, or biometrics of the individual or a group, band, class, or tier in which the individual belongs. Surveillance data includes information gathered, purchased, or otherwise acquired.Minn. Stat. § 325D.141, subd. 1(m) includes information gathered, purchased, or otherwise acquired. (n) "WageWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n)" means the material terms offered to a workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings. (o) "WorkerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o)" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.

Subdivision 1 establishes the defined terms for the new section. The definitions are broad: automated decision system covers any computation-assisted or computation-replacing decision-making system derived from machine learning, statistics, or AI techniques. Surveillance data encompasses data obtained through observation, inference, or surveillance related to personal characteristics, behaviors, or biometrics — including purchased data. Individualized extends beyond the individual level to groups, bands, classes, or tiers sharing particular characteristics, considerably widening the prohibition's reach.

Minn. Stat. § 325D.141, subd. 2
Prohibition on surveillance-based price discrimination
Deployer

(a) 1 A person is prohibited from engaging in surveillance-based price discriminationSurveillance-based price discrimination"Surveillance-based price discrimination" means using an automated decision system to inform individualized prices based on surveillance data regarding a consumer.Minn. Stat. § 325D.141, subd. 1(k).

(b)–(c) 1 A person does not engage in surveillance-based price discriminationSurveillance-based price discrimination"Surveillance-based price discrimination" means using an automated decision system to inform individualized prices based on surveillance data regarding a consumer.Minn. Stat. § 325D.141, subd. 1(k) if the person demonstrates: (1) differential pricesPrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs, fees, and other material terms of the transaction that have a direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Minn. Stat. § 325D.141, subd. 1(j) are justified based on differences in the cost incurred to provide a good or service to different consumersConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e); (2) differential pricesPrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs, fees, and other material terms of the transaction that have a direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Minn. Stat. § 325D.141, subd. 1(j) reflect discounts offered to all consumersConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) on equal terms in a manner consistent with applicable antidiscrimination laws, if: (i) the terms of the discount are available and accessible to consumersConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) and the public; and (ii) the discount rewards membership in a particular group, including but not limited to active members of the military, veterans, teachers, students, or seniors; or (3) the person operates as an insurerInsurer"Insurer" means an insurance company as defined under section 60A.02, subdivision 4.Minn. Stat. § 325D.141, subd. 1(h) and only inputs risk-relevant data into an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) that informs decisions related to the amount a consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) must pay for an insurance policy or contract. (c) A person has not engaged in surveillance-based price discriminationSurveillance-based price discrimination"Surveillance-based price discrimination" means using an automated decision system to inform individualized prices based on surveillance data regarding a consumer.Minn. Stat. § 325D.141, subd. 1(k) if the person demonstrates that a refusal to extend credit at specific terms or the refusal to enter into a transaction with a specific consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) is based on data provided in a consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) report covered by the federal Fair Credit Reporting Act, United States Code, title 15, section 1681 et seq.

Subdivision 2 establishes the core prohibition on surveillance-based price discrimination — using an automated decision system to set individualized prices based on surveillance data about consumers. The prohibition is absolute on its face, subject to three affirmative defenses: cost-justified differential pricing, publicly available equal-terms group discounts consistent with antidiscrimination law, and insurer use limited to risk-relevant data. A separate safe harbor exempts FCRA-covered credit decisions from the prohibition entirely.

The breadth of the prohibition is notable. Because surveillance data includes any data obtained through observation or inference related to personal characteristics, behaviors, or biometrics, and individualized extends to group-level tiers, a wide range of common dynamic-pricing and personalization practices could fall within scope unless the entity can demonstrate a listed defense.

Compliance actions 1 item
1
No person may use an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) to set individualizedIndividualized"Individualized" means specific to or inferred about an individual or group, band, class, or tier of individuals that possess particular personal characteristics, behaviors, or biometrics.Minn. Stat. § 325D.141, subd. 1(g) pricesPrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs, fees, and other material terms of the transaction that have a direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Minn. Stat. § 325D.141, subd. 1(j) for consumersConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) based on surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or worker that is related to personal characteristics, behaviors, or biometrics of the individual or a group, band, class, or tier in which the individual belongs. Surveillance data includes information gathered, purchased, or otherwise acquired.Minn. Stat. § 325D.141, subd. 1(m) regarding those consumersConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e), unless the person demonstrates the differential pricing is (1) cost-justified, (2) a publicly available equal-terms group discount consistent with antidiscrimination law, (3) insurerInsurer"Insurer" means an insurance company as defined under section 60A.02, subdivision 4.Minn. Stat. § 325D.141, subd. 1(h) use limited to risk-relevant data, or (4) based on FCRA-covered consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) report data.
CP-01.11
Minn. Stat. § 325D.141, subd. 3
Prohibition on surveillance-based wage discrimination
Deployer

(a) 2 A person is prohibited from engaging in surveillance-based wage discriminationSurveillance-based wage discrimination"Surveillance-based wage discrimination" means using an automated decision system to inform individualized wages based on surveillance data regarding a worker.Minn. Stat. § 325D.141, subd. 1(l).

(b)–(c) 2 A person does not engage in surveillance-based wage discriminationSurveillance-based wage discrimination"Surveillance-based wage discrimination" means using an automated decision system to inform individualized wages based on surveillance data regarding a worker.Minn. Stat. § 325D.141, subd. 1(l) if the person demonstrates: (1) the person offers individualizedIndividualized"Individualized" means specific to or inferred about an individual or group, band, class, or tier of individuals that possess particular personal characteristics, behaviors, or biometrics.Minn. Stat. § 325D.141, subd. 1(g) wagesWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n) based solely on: (i) data specific to the individual workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) that is directly related to the tasks the workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) was hired to perform; or (ii) differences in the cost to the workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) to provide labor to the person; and (2) before hiring a workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) to perform work, the person discloses in plain language to all workersWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) whose wagesWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n) are set in whole or in part through an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) what data is considered and how the automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) considers the data. (c) Surveillance-based wage discriminationSurveillance-based wage discrimination"Surveillance-based wage discrimination" means using an automated decision system to inform individualized wages based on surveillance data regarding a worker.Minn. Stat. § 325D.141, subd. 1(l) does not include a person's decision to not hire an individual who has not previously worked for or through the person or the person's affiliates or subsidiaries.

Subdivision 3 prohibits surveillance-based wage discrimination — using an automated decision system to set individualized wages based on surveillance data about workers. The affirmative defense is narrower than for pricing: the person must show (1) individualized wages are based solely on task-relevant data specific to the individual worker or cost-of-labor differences, and (2) the person disclosed in plain language before hiring what data the automated system considers and how it uses that data. Both prongs must be satisfied. A separate carve-out excludes initial hiring decisions for individuals who have not previously worked for the person.

The wage definition is unusually broad, encompassing not just pay rates but scheduling, task assignment, bonuses, commissions, and any material terms with a direct earnings impact. Combined with the broad surveillance data definition, this could reach algorithmic scheduling and gig-economy task-allocation systems.

Compliance actions 1 item
2
No person may use an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) to set individualizedIndividualized"Individualized" means specific to or inferred about an individual or group, band, class, or tier of individuals that possess particular personal characteristics, behaviors, or biometrics.Minn. Stat. § 325D.141, subd. 1(g) wagesWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n) for workersWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) based on surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or worker that is related to personal characteristics, behaviors, or biometrics of the individual or a group, band, class, or tier in which the individual belongs. Surveillance data includes information gathered, purchased, or otherwise acquired.Minn. Stat. § 325D.141, subd. 1(m), unless the person demonstrates that (1) individualizedIndividualized"Individualized" means specific to or inferred about an individual or group, band, class, or tier of individuals that possess particular personal characteristics, behaviors, or biometrics.Minn. Stat. § 325D.141, subd. 1(g) wagesWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n) are based solely on task-relevant data specific to the workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) or cost-of-labor differences, and (2) before hiring, the person disclosed in plain language to all affected workersWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) what data the system considers and how it uses that data.
Minn. Stat. § 325D.141, subd. 4
Publication of procedures
Deployer

3 A person that uses an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) to assist or replace human decision-making related to wagesWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n) or pricesPrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs, fees, and other material terms of the transaction that have a direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Minn. Stat. § 325D.141, subd. 1(j) must develop and publish reasonable procedures: (1) to ensure the accuracy of all data considered by the automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b); (2) to allow a consumerConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) or workerWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) to correct or challenge the accuracy of data considered by the automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b); and (3) for consumersConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) or workersWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) to request and receive information regarding what data is considered and how automated decision-making considers the data when setting particular pricesPrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs, fees, and other material terms of the transaction that have a direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Minn. Stat. § 325D.141, subd. 1(j) or wagesWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n).

Subdivision 4 imposes an affirmative procedural obligation on any person using an automated decision system for wage or price decisions. The person must develop and publish reasonable procedures addressing three areas: data accuracy assurance, a consumer/worker mechanism to correct or challenge data, and a consumer/worker right to request and receive information about what data the system considers and how it uses that data. This is a transparency and data-correction requirement that applies to all entities using automated decision systems for pricing or wages, regardless of whether they fall within a safe harbor for the substantive prohibitions in subdivisions 2 and 3.

Compliance actions 1 item
3
Any person using an automated decision systemAutomated decision system"Automated decision system" means a system, software, or process that uses computation, the result of which is used to assist or replace human decision-making. Automated decision system includes a system, software, or process derived from machine learning, statistics, or other data-processing or artificial-intelligence techniques. Automated decision system does not include passive computing infrastructure.Minn. Stat. § 325D.141, subd. 1(b) for pricing or wageWage"Wage" means the material terms offered to a worker in exchange for labor, including the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary, bonuses, commissions and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on earnings.Minn. Stat. § 325D.141, subd. 1(n) decisions must develop and publish reasonable procedures to (1) ensure data accuracy, (2) allow consumersConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) or workersWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) to correct or challenge inaccurate data, and (3) allow consumersConsumer"Consumer" means an individual who buys goods for personal, family, or household purposes.Minn. Stat. § 325D.141, subd. 1(e) or workersWorker"Worker" means an individual who performs work on behalf of or for the benefit of an employer as an employee as defined by section 268.035, subdivision 13, an independent contractor, or through another legal relationship.Minn. Stat. § 325D.141, subd. 1(o) to request and receive information about what data is considered and how the system uses it.
D-01.1

Passage Likelihood

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

Legislative History

2026-02-26 Introduction and first reading, referred to Commerce Finance and Policy
2026-03-05 Author added Kozlowski
2026-03-12 Authors added Pursell and Rehrauer
2026-04-23 Author added Lee, K.

Entry Last Reviewed

2026-05-20
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