Minnesota · House File · Ninety-Fourth Session
HF4537
Minnesota HF 4537 — A bill for an act relating to employment; prohibiting certain use of artificial intelligence; amending Minnesota Statutes 2024, section 363A.08, by adding a subdivision

Status ● Introduced Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Enforcement through the Minnesota Human Rights Act (Minn. Stat. § 363A). The Minnesota Department of Human Rights has investigatory and enforcement authority over unfair employment practices. Individuals may file charges with the Department or, after exhaustion of administrative remedies, bring civil actions. The bill does not create a standalone private right of action separate from the existing MHRA framework.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
The bill does not specify standalone penalties or remedies. As an amendment to Minn. Stat. § 363A.08 (unfair employment practices), violations are subject to the remedies available under the Minnesota Human Rights Act, Chapter 363A, which include compensatory damages, injunctive relief, civil penalties, and other administrative remedies as determined by the Department of Human Rights or a court of competent jurisdiction.

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. § 363A.08, subd. 9
Use of artificial intelligence in employment
Deployer

(a) "Artificial intelligenceArtificial intelligence"Artificial intelligence" as used in this subdivision means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, and decisions that can influence physical or virtual environments.Minn. Stat. § 363A.08, subd. 9(a)" as used in this subdivision means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, and decisions that can influence physical or virtual environments.

(b)(1) 1 It is an unfair employment practice, with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment, for an employer to: (1) use artificial intelligenceArtificial intelligence"Artificial intelligence" as used in this subdivision means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, and decisions that can influence physical or virtual environments.Minn. Stat. § 363A.08, subd. 9(a) that has the effect of subjecting an employee or applicant for employment to discrimination because of race, color, creed, religion, national origin, sex, gender identity, marital status, status with regard to public assistance, familial status, membership or activity in a local commission, disability, sexual orientation, or age;

(b)(2) 2 fail to provide notice to an employee or applicant for employment that the employer is using artificial intelligenceArtificial intelligence"Artificial intelligence" as used in this subdivision means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, and decisions that can influence physical or virtual environments.Minn. Stat. § 363A.08, subd. 9(a) for the purposes described in clause (1).

This new subdivision adds two AI-specific unfair employment practices to Minnesota's existing anti-discrimination framework. Paragraph (a) defines artificial intelligence using the OECD-aligned formulation common in recent state legislation. Paragraph (b) establishes two distinct obligations: clause (1) prohibits employer use of AI that has a discriminatory effect across the full range of employment decisions — from recruitment through termination — on the basis of Minnesota's protected characteristics; clause (2) requires employers to notify employees and applicants when AI is being used for those employment purposes.

The discriminatory-effect standard is notable because it does not require intent — the employer's use of AI need only have the effect of subjecting an individual to discrimination. The notice obligation is tied to the employment purposes described in clause (1), meaning it applies whenever AI is used in recruitment, hiring, promotion, renewal, training selection, discharge, discipline, tenure, or terms and conditions of employment. The bill does not prescribe the form, timing, or content of the required notice.

Compliance actions 2 items
1
Employers must not use artificial intelligenceArtificial intelligence"Artificial intelligence" as used in this subdivision means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, and decisions that can influence physical or virtual environments.Minn. Stat. § 363A.08, subd. 9(a) in recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment where that use has the effect of subjecting an employee or applicant to discrimination because of race, color, creed, religion, national origin, sex, gender identity, marital status, status with regard to public assistance, familial status, membership or activity in a local commission, disability, sexual orientation, or age.
H-02
2
Employers must provide notice to employees and applicants for employment that the employer is using artificial intelligenceArtificial intelligence"Artificial intelligence" as used in this subdivision means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, and decisions that can influence physical or virtual environments.Minn. Stat. § 363A.08, subd. 9(a) in recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.
H-01.3

Passage Likelihood

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

Legislative History

2026-03-23 Introduction and first reading, referred to Judiciary Finance and Civil Law

Entry Last Reviewed

2026-05-20
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