Regulon — MO-SB-1654 · MO SB 1654 (Warehouse Worker AI Monitoring)

WHAT THIS BILL REGULATES · 5 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority

Private right of action by aggrieved employees or the attorney general on behalf of aggrieved employees. The director of the department of labor and industrial relations monitors warehouse injury rates and may initiate investigations. The director also imposes civil monetary penalties for violations of the AI job-impact disclosure requirement under § 290.166.

Private Right of Action

Private right of action by aggrieved employees or the attorney general on behalf of aggrieved employees.

Penalties

Statutory damages of $5,000–$7,500 per violation in addition to economic damages. Court has discretion based on severity and prior violation history. Additional civil penalties assessed by the court: $1,000 (first violation), $2,000 (second), $3,000 (third or subsequent). For failure to pay severance, employer liable for unpaid amount plus two times that amount as liquidated damages. Prevailing complainant awarded reasonable attorney's fees and costs. Equitable and injunctive relief available. For AI job-impact disclosure violations (§ 290.166), $500 per violation; willful or repeated violations $1,000–$3,000 additional.

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

§ 290.160

Definitions

(1)–(7) As used in sections 290.161 to 290.167, unless the context indicates otherwise, the following terms mean: (1) "Artificial intelligence", a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine and human-based inputs to: (a) Perceive real and virtual environments; (b) Abstract such perceptions into models through analysis in an automated manner; and (c) Use model inference to formulate options for information or action; (2) "Designated employee representative", any representative designated by an employee, including an employee representative that has a collective bargaining relationship with the covered employer of the covered employee. A designated employee representative shall not include a worker's employer; (3) "Employee", an individual who is employed at a warehouse distribution center and who is not exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act of 1938, as amended from time to time. "Employee" does not include a driver or courier traveling to or from a warehouse distribution center; (4) "Employer", an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign, that directly or indirectly, or through an agent or any other person, including through the services of a third-party employer, temporary services, staffing agency, independent contractor or any similar entity, at any time in the prior twelve months, employs or exercises control over the wages, hours, or working conditions of fifty or more employees at a single warehouse distribution center in the state or one thousand or more employees at one or more warehouse distribution centers in the state; (5) "Warehouse distribution center", an establishment as defined by any of the following North American Industry Classification System Codes, however such establishment is denominated: (A) 493110 for General Warehousing and Storage; (B) 423 for Merchant Wholesalers, Durable Goods; (C) 424 for Merchant Wholesalers, Nondurable Goods; (D) 454110 for Electronic Shopping and Mail-Order Houses; or (E) 492110 for Couriers and Express Delivery Services; (6) "Work performance standard", an expectation set by an employer for an employee; (7) "Work speed data", information an employer collects, stores, analyzes, or interprets relating to an individual employee's work performance, including, but not limited to, quantities of tasks performed, quantities of items or materials handled or produced, rates or speeds of tasks performed, measurements or metrics of employee performance, and time categorized as performing tasks or not performing tasks. "Work speed data" does not include wage statements or data an employer collects, stores, analyzes, or interprets that does not relate to the work performance, except for any content of such records that includes work speed data.

Section 290.160 defines the key terms used throughout the bill. Employer is scoped to entities controlling 50+ employees at a single warehouse distribution center or 1,000+ across the state. Employee excludes FLSA-exempt workers and drivers/couriers in transit. The artificial intelligence definition follows the NIST-style formulation. Work speed data is broadly defined to cover all electronically collected performance metrics.

§ 290.161

Work performance standard disclosure, restrictions, and adverse action protections

Deployer

1 1 Upon hiring an employee, an employer shall provide to such employee a written description of each work performance standard to which such employee is subject, including any potential adverse employment action that may result from a failure to satisfy such work performance standard. Such written description shall be provided to an employer's current employees not later than October 1, 2026.

2(1)–(3) 2 Whenever an employer makes a change to an existing work performance standard for an employee, the employer shall: (1) Notify the employee of such change as soon as possible, either verbally or in writing, and prior to the effective date of such new standard; (2) Provide the employee with a written description of the new work performance standard to which such employee is subject not later than two business days after the change is made; and (3) Any written description required pursuant to this section shall be provided directly to an employee by a human manager during such employee's work hours.

3(1)–(6) 3 An employer shall not impose any work performance standard that: (1) Interferes with an employee's use of the bathroom facilities, including reasonable travel time to and from the bathroom facilities; (2) Sets a performance standard that measures an employee's total output over an increment of time that is shorter than such employee's work day; (3) Requires an employee to work for three or more consecutive hours without a period of at least ten consecutive minutes for a rest break, given at some time after the first hour of work and before the last hour; (4) Requires employees to work more than forty hours in a seven-day period or ten hours in a twenty-four hour period, unless the employee agrees in writing or in a similar format and is paid a one hundred fifty dollar premium in addition to their wages and any overtime premium pay required under state or federal law; (5) Requires employees to work consecutive shifts with less than twelve hours of time elapsing between the shifts, unless the employee agrees in writing or in a similar format and is paid a one hundred fifty dollar premium in addition to their wages; or (6) Require an employee to perform duties outside of the scope of such employee's regular job duties for more than three hours a week.

4(1)–(5) 4 An employer shall not take an adverse employment action against an employee for failure to meet a work performance standard that: (1) Violates subsection 3 of this section; (2) Was not described to the employee in accordance with subsection 2 of this section; (3) Is based solely on ranking the performance of the employee in relation to the performance of another employee or in relation to the past performance of that employee; (4) Is based on continuously measuring, recording, or tallying increments of time within a defined time period during which an employee is or is not doing a particular activity; or (5) Is based primarily on work speed data collected through automated electronic monitoring.

5 5 An employee may request to speak in person with a human manager during such employee's work hours. An employer shall assign a human manager authorized to make decisions related to discipline to respond not later than thirty minutes after such a request. An employee may not make more than one request per every two hours under this section.

6(1)–(3) 6 An employer shall not discipline or terminate an employee based on failure to meet a performance standard unless it has provided prior written notice of such action. Such notice shall include the following: (1) A plain language description of the reasons for the discipline or termination; (2) The effective date of the discipline or termination; and (3) Any and all records relied upon to substantiate the discipline or termination.

7 7 In the case of a termination based on failure to meet a work performance standard, the employer shall notify the employee of the termination of their employment at least fourteen days before such termination becomes effective, as well as upon the effective date of termination. The time period between a first warning or discipline and termination shall be not less than thirty days, and the employer may not rely on a warning or discipline issued more than one year in the past to justify a termination.

Section 290.161 imposes the bill's core operating obligations on warehouse employers. At hiring (and by October 1, 2026 for existing employees), employers must provide a written description of every applicable work performance standard, including potential adverse consequences. Written descriptions must be delivered in person by a human manager during work hours. Employers are prohibited from imposing standards that interfere with bathroom breaks, measure output in increments shorter than a full workday, violate rest-break minimums, or exceed weekly/daily hour caps without written consent and a premium. Adverse employment actions are prohibited when based on standards that violate these restrictions, were not disclosed, rely solely on peer-ranking, track continuous time increments, or are based primarily on work speed data from automated electronic monitoring. Employees have a right to speak with a human manager within thirty minutes. Pre-termination notice and a fourteen-day cooling period are required.

Compliance actions 7 items

Employers must provide each employee at hiring (and all current employees by October 1, 2026) a written description of every work performance standard to which the employee is subject, including any potential adverse employment action for failure to meet the standard.

H-01.3

Employers must (1) notify employees of any change to a work performance standard as soon as possible and before the new standard takes effect, (2) provide a written description of the new standard within two business days, and (3) deliver all written descriptions in person through a human manager during work hours.

H-01.3

Employers must not impose any work performance standard that interferes with bathroom use, measures output in increments shorter than a workday, denies required rest breaks, exceeds daily or weekly hour caps without written consent and a $150 premium, requires consecutive shifts with less than twelve hours between them without consent and premium, or requires more than three hours per week of out-of-scope duties.

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Employers must not take adverse employment action against an employee for failure to meet a work performance standard that violates the prohibited-standard restrictions, was not properly disclosed, is based solely on peer-ranking, is based on continuous time-increment tracking, or is based primarily on work speed data collected through automated electronic monitoring.

H-01.6

Employers must, within thirty minutes of an employee's request, assign a human manager authorized to make discipline-related decisions to speak with the employee in person during work hours.

H-01.4

Employers must not discipline or terminate an employee for failure to meet a performance standard without first providing written notice that includes a plain-language explanation of reasons, the effective date, and all records relied upon to substantiate the action.

H-01.1

Employers must notify an employee of termination for failure to meet a work performance standard at least fourteen days before the termination becomes effective. At least thirty days must elapse between a first warning and termination, and the employer may not rely on warnings issued more than one year prior.

H-01.3

§ 290.162

Recordkeeping and employee access to work speed data

Deployer

1(1)(a)–(d), (2) 8 Each employer shall establish, maintain, and preserve contemporaneous, true, and accurate records of the following: (a) Each individual employee's work performance records; (b) The aggregated work performance records for similar employees at the same warehouse distribution center; (c) The work performance standard provided to each employee pursuant to section 290.161; and (d) The written notice provided to a terminated employee pursuant to subsection 8 of section 290.161. (2) The records required by this subsection shall be maintained for a period of three years. Nothing in this section shall require an employer to establish, maintain, and preserve the records required pursuant to this section if such employer does not assign or require work performance standards or collect, store, analyze, or interpret work performance data.

2(1)–(4) 9 An employee, or a designated employee representative of such employee, may request from such employee's employer: (1) A written description of the work performance standard the employee is subject to; (2) A copy of the employee's personal work speed data for the prior ninety days; (3) A copy of aggregated work speed data for similar employees at the same warehouse distribution center for the prior ninety days; and (4) Any notices of discipline issued to such employee in the prior year.

3(1)(a)–(d), (2) 9 A former employee, or a designated employee representative of such employee, may request from a former employer: (a) A written description of each work performance standard the employee was subject to for the ninety days prior to the employee's separation from employment with such employer; (b) A copy of the employee's personal work speed data for the ninety days prior to such employee's separation from employment with such employer; (c) A copy of aggregated work speed data for similar employees at the same warehouse distribution center for the ninety days prior to such employee's separation from employment with such employer; and (d) Any notices of discipline issued to such former employee in the calendar year prior to the termination. (2) A former employee may only make one request under this section.

4(1)–(2) 9 An employer shall provide a written copy of any records requested pursuant to this section not later than five calendar days after receipt of such request. Such written copy shall be provided: (1) In both English and the primary language of the employee requesting such records; and (2) (a) For a current employee, directly to the employee requesting such records by a manager during such employee's work hours; or (b) For a former employee, either at a mutually convenient time or via a mutually convenient delivery method.

Section 290.162 imposes recordkeeping and data-access obligations. Employers must maintain individual and aggregated work performance records, performance standard descriptions, and termination notices for three years. Current employees and their designated representatives may request their personal work speed data, aggregated peer data, performance standards, and discipline notices. Former employees have a one-time right to the same records for the ninety days preceding separation. Employers must produce records within five calendar days, in English and the employee's primary language, and deliver them in person by a manager during work hours for current employees.

Compliance actions 2 items

Employers must establish, maintain, and preserve for three years contemporaneous and accurate records of each employee's individual work performance data, aggregated work performance data for similar employees, the work performance standard provided to each employee, and written termination notices.

G-01.3

Employers must, within five calendar days of an employee's or former employee's request, provide in English and the employee's primary language: (1) a written description of applicable work performance standards, (2) personal work speed data for the prior ninety days, (3) aggregated work speed data for similar employees at the same site for the prior ninety days, and (4) any discipline notices from the prior year. Former employees are limited to one request.

D-01.1

§ 290.163

Reduction in force requirements and severance pay

Deployer

1(1)–(3) 10 An employer shall not commence a reduction of force resulting in an employment loss at a single site of employment during any thirty day period for fifty or more employees unless such employer has offered a new employment position to each employee who may reasonably be expected to experience an employment loss as a consequence of such a reduction in force. Such a position shall be: (1) Comparable with regard to wages, hours, benefits, working conditions, and job duties; (2) Within a reasonable commuting distance from the affected site of employment; and (3) Offered in writing at least thirty days prior to the commencement of such a reduction in force.

2 11 If an employer discharges an employee, the employer shall pay the employee two weeks of severance pay plus an additional day of severance pay for each two months that the employee has worked for the employer. One week of severance pay shall be calculated based on the employee's average weekly earnings including overtime pay received during the employee's most recent twelve months of employment, or received during the duration of the employee's employment if the duration of the employment has been less than twelve months. A day of severance pay shall be equal to one week of severance pay divided by five.

Section 290.163 imposes obligations on employers conducting large-scale reductions in force (50+ employees at a single site in a thirty-day period). Employers must offer each affected employee a comparable position — similar wages, hours, benefits, and duties — within reasonable commuting distance, in writing at least thirty days before the layoff. Discharged employees are entitled to severance pay calculated as two weeks' average weekly earnings plus one additional day per two months of service. This section does not specifically address AI but operates in the broader context of the bill's AI-displacement reporting requirements.

Compliance actions 2 items

Employers must not commence a reduction in force of 50+ employees at a single site in any thirty-day period unless they have offered each affected employee a comparable position (similar wages, hours, benefits, duties) within reasonable commuting distance, in writing at least thirty days before the layoff.

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Employers must pay discharged employees severance of two weeks' average weekly earnings plus one additional day per two months of service.

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§ 290.164

Anti-retaliation protections

Deployer

1(1)–(3) 12 An employer shall not discharge or in any way retaliate, discriminate, or take any adverse action against any employee or former employee for: (1) Making a request pursuant to section 290.161 or 290.162; (2) Declining to work more than forty hours in a week, more than ten hours in a day, or consecutive shifts with less than twelve hours between the shifts; or (3) Filing a civil action pursuant to section 290.165.

2(1)–(2) 12 If an employer discharges or in any way retaliates, discriminates, or takes any adverse action against any employee or former employee within ninety days after such employee engages in or attempts to engage in the activities described in subsection 1 of this section, there shall be a rebuttable presumption that such adverse action is in violation of this section. Such presumption may be rebutted by clear and convincing evidence that the: (1) Adverse action was taken for other permissible reasons; and (2) Employee engaging or attempting to engage in the activities described in subsection 1 of this section was not a motivating factor in the employer taking such adverse action.

Section 290.164 prohibits retaliation against employees or former employees for exercising rights under the bill — requesting performance-standard disclosures or work-speed data, declining to work excessive hours or consecutive shifts, or filing a civil action. A rebuttable presumption of retaliation arises if adverse action occurs within ninety days of protected activity. The employer may rebut by clear and convincing evidence that the action was taken for permissible reasons and that the protected activity was not a motivating factor.

Compliance actions 1 item

Employers must not discharge, retaliate against, discriminate against, or take any adverse action against employees or former employees for exercising rights under the bill, including requesting performance data, declining excessive hours, or filing a civil action. Adverse action within ninety days of protected activity creates a rebuttable presumption of retaliation.

G-03.3

§ 290.165

Private right of action and enforcement

1(1)(a)–(c) An employee aggrieved by a violation of sections 290.161 to 290.164, or the attorney general on behalf of an employee aggrieved by a violation of sections 290.161 to 290.164, may bring a civil action in circuit court or any other court of competent jurisdiction to recover damages, civil penalties, and such equitable and injunctive relief as the court deems appropriate. An employer who violates the provisions of sections 290.161 to 290.164 shall be liable to a plaintiff for statutory damages of not less than five thousand dollars nor more than seven thousand five hundred dollars per violation in addition to economic damages. A court shall have discretion to determine the amount in light of the severity of the violation and any history of prior violations. A complainant who prevails in such a civil action shall be awarded reasonable attorney's fees and costs to be taxed by the court. An employer who violates a provision of section 290.161 to 290.164 may be assessed a civil penalty by the court of: (a) One thousand dollars for a first violation; (b) Two thousand dollars for a second violation; or (c) Three thousand dollars for a third or subsequent violations.

1(2) An employer who fails to pay in full required severance pay shall be liable for payment of the required severance pay, plus an additional two times the unpaid amount as liquidated damages.

2 The director of the department of labor and industrial relations shall monitor the injury rates of employees working in warehouse distribution centers in the state. If an employer is found to have an annual injury rate at or over one and one-half times the average annual injury rate for the relevant North American Industry Classification System Codes, based on data reported to the federal Occupational and Safety and Health Administration, the director of the department of labor and industrial relations shall determine whether an investigation concerning potential violations of sections 290.161 to 290.164 is appropriate.

Section 290.165 creates a private right of action for aggrieved employees and authorizes the attorney general to sue on their behalf. Statutory damages range from $5,000 to $7,500 per violation, in addition to economic damages, with court discretion based on severity and prior violations. Prevailing complainants recover attorney's fees. The court may also impose civil penalties of $1,000–$3,000 on an escalating schedule. Failure to pay severance triggers liquidated damages of 2x the unpaid amount. The director of labor monitors warehouse injury rates and may investigate employers with rates at or above 1.5x the industry average.

§ 290.166

Quarterly AI job-impact disclosure to the director of labor

Deployer

1(1)–(5) 13 Not more than thirty days after the last day of each quarter, an employer shall, with respect to the preceding quarter, disclose to the director of the department of labor and industrial relations any artificial intelligence-related job impact experienced by the entity in the state of Missouri, including: (1) The number of individuals laid off by the employer in the state of Missouri during the quarter that are substantially due to the replacement or automation by artificial intelligence of the functions performed by such individuals; (2) The number of individuals hired by the employer in the state of Missouri during the quarter that are substantially due to the incorporation of artificial intelligence; (3) The number of positions at the employer's establishments in the state of Missouri that were occupied at any point during the prior quarter for which the employer has decided not to fill based on a reason that is substantially due to the replacement or automation by artificial intelligence of the functions of such positions; (4) The number of individuals in the state of Missouri whom the employer is retraining, or assisting in retraining, based on a reason that is substantially due to artificial intelligence; and (5) Any other information related to artificial intelligence-related job impacts, as determined appropriate by the director at the department of labor and industrial relations.

2 13 With respect to each artificial intelligence-related job impact disclosure under section 290.166, the employer shall provide in such disclosure the corresponding North American Industry Classification System Codes.

3 The director of the department of labor and industrial relations shall impose civil monetary penalties on an employer in violation of this section as follows. For each violation, a penalty of five hundred dollars shall be imposed. In the case of willful or repeated violations, an additional amount of not less than one thousand dollars and not more than three thousand dollars shall be imposed.

4(1)–(3) The director of the department of labor and industrial relations shall: (1) For each quarter, prepare a report summarizing the data from disclosures submitted under subsection 1 of this section during the quarter; and for the quarter ending on December thirty-first, summarizing such data for the calendar year; (2) For every other quarter, prepare a report analyzing the net impact of the data contained in the report under subdivision (1) of this subsection for such quarter and for the preceding quarter, and any other relevant data available to the director of the department of labor and industrial relations with respect to artificial intelligence-related job impacts; and (3) Not more than sixty days after the last day of each quarter publish each report prepared for the quarter under subdivision (1) of this subsection and, as applicable, subdivision (2) of this subsection, and the data underlying such reports on the website of the department of labor and industrial relations; and submit each such report to the speaker of the house of representatives and the president pro tempore of the senate.

Section 290.166 imposes a novel quarterly reporting obligation requiring employers to disclose AI-related job impacts to the director of the department of labor and industrial relations. Employers must report, with corresponding NAICS codes, the number of layoffs substantially due to AI replacement or automation, hires due to AI incorporation, unfilled positions due to AI replacement, and individuals being retrained due to AI. The director may request additional information. Civil penalties of $500 per violation apply, with $1,000–$3,000 additional for willful or repeated violations. The director must prepare quarterly and biannual analytical reports and publish them on the department website and submit them to the legislature.

Compliance actions 1 item

Employers must, within thirty days after each quarter-end, disclose to the director of the department of labor and industrial relations all AI-related job impacts for the preceding quarter, including AI-driven layoffs, AI-driven hires, positions left unfilled due to AI replacement, individuals being retrained due to AI, and corresponding NAICS codes.

R-02.1

§ 290.167

Annual CPI-W adjustment of dollar amounts

Effective July 1, 2027, and each subsequent July first after that, the director of the department of labor and industrial relations shall increase all of the dollar amounts specified in sections 290.161 to 290.166 in proportion to the increase, if any, during the most recent twelve month period for which data is available when the increase is announced, in the consumer price index for all urban wage earners and clerical workers on a national and seasonally unadjusted basis (CPI-W), or a successor index, as calculated by the United States Department of Labor or a successor agency. Such increases shall be announced by April 1, 2027, and by April first of subsequent years.

Section 290.167 directs the director of the department of labor and industrial relations to adjust all dollar amounts in the bill annually beginning July 1, 2027, in proportion to changes in the CPI-W consumer price index. Increases must be announced by April 1 each year.

Data Controls Data sale restrictions · deidentification

1 item

D-01.1

Human Oversight Decision review · appeal pathways

6 items

H-01.3

H-01.6

H-01.4

Employers must, within thirty minutes of an employee's request, assign a human manager authorized to make discipline-related decisions to speak with the employee in person during work hours.

H-01.1

H-01.3