WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
How Is This Bill Enforced
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.
As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1" means a machine-based system that can, for a set of human-defined objectives provided by an employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 or an individual acting on behalf of an employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisionsEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1.
"Bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1" means an impartial evaluation conducted by an independent auditorIndependent auditor"Independent auditor" means a person or group that is capable of exercising objective and impartial judgment on all issues within the scope of a bias audit of an automated employment decision tool. An auditor shall not be considered independent if the auditor: a. is or was involved in using, developing, or distributing the automated employment decision tool; b. at any point during the bias audit, has an employment relationship with an employer or employment agency that seeks to use or continue to use the automated employment decision tool or with a vendor that developed or distributes the automated employment decision tool; or c. at any point during the bias audit, has a direct financial interest or a material indirect financial interest in an employer or employment agency that seeks to use or continue to use the automated employment decision tool or in a vendor that developed or distributed the automated employment decision tool.Section 1, including but not limited to: a. rigorous assessment of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 to determine its impact on persons of any categoryCategory"Category" means race, color, national origin, ethnicity, sex, gender identity, sexual orientation, age, religion, marital or familial status, disability, and deriving income from any public assistance program.Section 1; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 in employment decisionsEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1.
"CategoryCategory"Category" means race, color, national origin, ethnicity, sex, gender identity, sexual orientation, age, religion, marital or familial status, disability, and deriving income from any public assistance program.Section 1" means race, color, national origin, ethnicity, sex, gender identity, sexual orientation, age, religion, marital or familial status, disability, and deriving income from any public assistance program.
"CommissionerCommissioner"Commissioner" means the Commissioner of Labor and Workforce Development.Section 1" means the Commissioner of Labor and Workforce Development.
"Covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1" means a candidate for employment or current employee being assessed by an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 to make an employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1.
"DepartmentDepartment"Department" means Department of Labor and Workforce Development.Section 1" means Department of Labor and Workforce Development.
"EmployerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, departmentDepartment"Department" means Department of Labor and Workforce Development.Section 1, bureau, or instrumentality thereof, employing any person.
"Employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1" means to screenScreen"Screen" means to make a favorable or unfavorable determination about whether a candidate being considered for employment or employee being considered for promotion, termination, or performance review should be selected or advanced in the hiring or promotion process.Section 1 a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.
"Impact ratioImpact ratio"Impact ratio" means: a. the ratio of the protected class that receives a favorable outcome and the proportion of the control class that receives a favorable outcome when the decision being made is binary, including but not limited to the decision to hire or not and the decision to promote or not; or b. the ratio of the difference between the average protected class outcome and the average control class outcome to a measure of the standard deviation of the outcome across the overall population when the decision being made is not binary, including but not limited to the decision to increase base salary or compensation of an employee.Section 1" means: a. the ratio of the protected class that receives a favorable outcome and the proportion of the control class that receives a favorable outcome when the decision being made is binary, including but not limited to the decision to hire or not and the decision to promote or not; or b. the ratio of the difference between the average protected class outcome and the average control class outcome to a measure of the standard deviation of the outcome across the overall population when the decision being made is not binary, including but not limited to the decision to increase base salary or compensation of an employee.
"Independent auditorIndependent auditor"Independent auditor" means a person or group that is capable of exercising objective and impartial judgment on all issues within the scope of a bias audit of an automated employment decision tool. An auditor shall not be considered independent if the auditor: a. is or was involved in using, developing, or distributing the automated employment decision tool; b. at any point during the bias audit, has an employment relationship with an employer or employment agency that seeks to use or continue to use the automated employment decision tool or with a vendor that developed or distributes the automated employment decision tool; or c. at any point during the bias audit, has a direct financial interest or a material indirect financial interest in an employer or employment agency that seeks to use or continue to use the automated employment decision tool or in a vendor that developed or distributed the automated employment decision tool.Section 1" means a person or group that is capable of exercising objective and impartial judgment on all issues within the scope of a bias audit of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1. An auditor shall not be considered independent if the auditor: a. is or was involved in using, developing, or distributing the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1; b. at any point during the bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1, has an employment relationship with an employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 or employment agency that seeks to use or continue to use the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 or with a vendor that developed or distributes the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1; or c. at any point during the bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1, has a direct financial interest or a material indirect financial interest in an employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 or employment agency that seeks to use or continue to use the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 or in a vendor that developed or distributed the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1.
"Scoring rateScoring rate"Scoring rate" means the rate at which individuals in a category receive a score above the sample's median score, where the score has been calculated by an automated employment decision tool.Section 1" means the rate at which individuals in a categoryCategory"Category" means race, color, national origin, ethnicity, sex, gender identity, sexual orientation, age, religion, marital or familial status, disability, and deriving income from any public assistance program.Section 1 receive a score above the sample's median score, where the score has been calculated by an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1.
"ScreenScreen"Screen" means to make a favorable or unfavorable determination about whether a candidate being considered for employment or employee being considered for promotion, termination, or performance review should be selected or advanced in the hiring or promotion process.Section 1" means to make a favorable or unfavorable determination about whether a candidate being considered for employment or employee being considered for promotion, termination, or performance review should be selected or advanced in the hiring or promotion process.
"Selection rateSelection rate"Selection rate" means the rate at which favorable or adverse reactions are taken regarding individuals in a category in the employment decision process by an automated employment decision tool. This rate may be calculated by dividing the number of individuals with favorable or unfavorable outcomes in the category by the total number of individuals in the category.Section 1" means the rate at which favorable or adverse reactions are taken regarding individuals in a categoryCategory"Category" means race, color, national origin, ethnicity, sex, gender identity, sexual orientation, age, religion, marital or familial status, disability, and deriving income from any public assistance program.Section 1 in the employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1 process by an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1. This rate may be calculated by dividing the number of individuals with favorable or unfavorable outcomes in the categoryCategory"Category" means race, color, national origin, ethnicity, sex, gender identity, sexual orientation, age, religion, marital or familial status, disability, and deriving income from any public assistance program.Section 1 by the total number of individuals in the categoryCategory"Category" means race, color, national origin, ethnicity, sex, gender identity, sexual orientation, age, religion, marital or familial status, disability, and deriving income from any public assistance program.Section 1.
Section 1 establishes the definitional framework for the bill. Key defined terms include automated employment decision tool (a machine-based system making predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions), bias audit (an impartial evaluation by an independent auditor covering impact assessment, bias identification, and actionable recommendations), category (an expansive list of protected characteristics including public-assistance-income status), and independent auditor (subject to detailed conflict-of-interest restrictions). The definition of employer is notably broad, encompassing both private and public employers including state and local government entities.
a.(1)–(4) 1 a. It shall be unlawful to sell, develop, deploy, use, or offer for sale in the State an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 unless: (1) the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 is the subject of a bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1 conducted in the past year prior to selling or offering the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 for sale; (2) the sale of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 includes, at no additional cost, an annual bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1 service that provides the results of that audit to the purchaser and a written plan to monitor the implementation of the recommendations in the audit report; (3) the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 is sold, developed, deployed, used, or offered for sale with a notice stating that the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 is subject to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill); and (4) the developer of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 has implemented the recommendations of the most recent bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1 conducted and issued a press release announcing how the recommendations have been implemented.
b. 2 b. Any employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 in the State who uses an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 to screenScreen"Screen" means to make a favorable or unfavorable determination about whether a candidate being considered for employment or employee being considered for promotion, termination, or performance review should be selected or advanced in the hiring or promotion process.Section 1 a covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 for an employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1 shall provide on its Internet website a summary of the most recent bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1.
c. 3 c. Any employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 who uses an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 to screenScreen"Screen" means to make a favorable or unfavorable determination about whether a candidate being considered for employment or employee being considered for promotion, termination, or performance review should be selected or advanced in the hiring or promotion process.Section 1 a covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 for an employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1 shall notify each covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 at least 10 days before use that an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1, which is subject to a bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1 pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), will be used in connection with the covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1's application.
d.(1)–(3) 3 d. To comply with subsection c. of this section, an employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 or employment agency in the State shall provide notice to a candidate for employment by providing notice in a clear and conspicuous manner: (1) on the employment section of its website at least 10 business days before use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1; (2) in a job posting at least 10 business days before use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1; or (3) to candidates for employment via U.S. mail or electronic mail at least 10 business days before use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1.
e.(1)–(3) 3 e. To comply with subsection c. of this section, an employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 or employment agency shall provide notice to an employee being assessed by an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 who resides in the State by providing notice in a clear and conspicuous manner: (1) in a written policy or procedure that is provided to employees at least 10 business days before use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1; (2) in a job posting at least 10 business days before use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1; or (3) via U.S. mail or electronic mail at least 10 business days before use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1.
f.(1)–(4) 4 f. Any employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 who uses an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 to screenScreen"Screen" means to make a favorable or unfavorable determination about whether a candidate being considered for employment or employee being considered for promotion, termination, or performance review should be selected or advanced in the hiring or promotion process.Section 1 a covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 for an employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1 shall notify each covered individual of the following within 30 days of use: (1) that an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1, which is subject to a bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1 pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), was used in connection with the covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1's application; (2) the job qualifications or characteristics that an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 used to assess the covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1's application; (3) the sources of the data collected, the data retention policy of the employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1, the name of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 the employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 used, and the vendor of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1; and (4) if the outcome of the employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1 is adverse to the covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1, sufficient disclosures to enable the covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 to contest any such employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1 that results from the use of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1, which sufficient disclosures shall include but not be limited to providing a statement of specific reasons for an adverse employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1 in writing to applicants against whom adverse employment action is taken.
g.(1)–(2) 5 g. Before the use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1, an employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 or employment agency in the State shall make the following publicly available on the employment section of its website in a clear and conspicuous manner that is accessible, machine-readable, and downloadable, in addition to a hard copy that shall be made available upon request: (1) the date of the most recent bias audit of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 and a summary of the results, which shall include the source and explanation of the data used to conduct the bias auditBias audit"Bias audit" means an impartial evaluation conducted by an independent auditor, including but not limited to: a. rigorous assessment of an automated employment decision tool to determine its impact on persons of any category; b. identification and documentation of any biases, risks, or potential discriminatory outcomes that arise from the automated employment decision tool's design, implementation, or use; and c. clear, actionable recommendations to avoid, manage, or mitigate, identified biases and risks, and to ensure the safe, secure, and trustworthy use of the automated employment decision tool in employment decisions.Section 1, the number of individuals the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 assessed that fall within an unknown categoryCategory"Category" means race, color, national origin, ethnicity, sex, gender identity, sexual orientation, age, religion, marital or familial status, disability, and deriving income from any public assistance program.Section 1, and the number of applicants or candidates, the selection ratesSelection rate"Selection rate" means the rate at which favorable or adverse reactions are taken regarding individuals in a category in the employment decision process by an automated employment decision tool. This rate may be calculated by dividing the number of individuals with favorable or unfavorable outcomes in the category by the total number of individuals in the category.Section 1 or scoring ratesScoring rate"Scoring rate" means the rate at which individuals in a category receive a score above the sample's median score, where the score has been calculated by an automated employment decision tool.Section 1, as applicable, and the impact ratiosImpact ratio"Impact ratio" means: a. the ratio of the protected class that receives a favorable outcome and the proportion of the control class that receives a favorable outcome when the decision being made is binary, including but not limited to the decision to hire or not and the decision to promote or not; or b. the ratio of the difference between the average protected class outcome and the average control class outcome to a measure of the standard deviation of the outcome across the overall population when the decision being made is not binary, including but not limited to the decision to increase base salary or compensation of an employee.Section 1 for all categories; and (2) the date of operation of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1. An employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 or employment agency shall keep the summary of results and distribution date posted for at least 10 years after its latest use of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 for an employment decisionEmployment decision"Employment decision" means to screen a candidate for employment or otherwise to help decide compensation or any other terms, conditions, or privileges of employment.Section 1 and issue a press release when the report is made publicly available.
Section 2 is the bill's core operative provision, imposing obligations on two distinct actor types: developers/vendors who sell AEDTs, and employers who use them. For developers, subsection (a) creates a precondition to lawful sale — the tool must have undergone an annual independent bias audit, the sale must bundle ongoing annual audit services at no extra cost, the tool must carry a statutory compliance notice, and the developer must have implemented the most recent audit's recommendations and issued a press release announcing how those recommendations were implemented.
For employers, the obligations fall into three categories: pre-use advance notice to covered individuals at least 10 business days before the AEDT is used (subsections c–e), post-use disclosure within 30 days including specific reasons for adverse decisions (subsection f), and ongoing public posting of bias audit summaries on the employer's website in accessible, machine-readable format with a 10-year retention requirement (subsection g). The post-use disclosure obligation is particularly detailed, requiring identification of the tool, vendor, data sources, job qualifications assessed, and — for adverse outcomes — sufficient information to enable the covered individual to contest the decision.
a.(1) a. (1) Any developer of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 that is found to violate subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be liable for a civil penalty of not more than $1,500 for that developer's first violation and each additional violation occurring on the same day as the first violation. Such civil penalty shall increase by two percent for each subsequent day the developer remains in violation of P.L. , c. (C. ) (pending before the Legislature as this bill). Violations shall accrue on a daily basis for each automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 that is sold or offered for sale in violation of P.L. , c. (C. ) (pending before the Legislature as this bill).
a.(2) Any employerEmployer"Employer" means any individual, partnership, association, corporation, and the State and any county, municipality, or school district in the State, or any agency, authority, department, bureau, or instrumentality thereof, employing any person.Section 1 or employment agency that violates subsection b., c., d., e., f., or g. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be liable for a civil penalty of not more than $500 for a first violation and for each subsequent violation.
a.(3) Each instance in which notice is not provided to a covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 at least 10 days before use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means a machine-based system that can, for a set of human-defined objectives provided by an employer or an individual acting on behalf of an employer, make predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions.Section 1 in violation of subsection c. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) constitutes a single violation.
a.(4) Each instance in which notice is not provided to a covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 within 30 days in violation of subsection f. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) constitutes a single violation, and each 30-day period thereafter in which notice is not provided to a candidate constitutes a separate violation.
b. b. All penalties assessed under this section shall be payable to the State Treasurer and may be recovered with costs in a summary proceeding commenced by the commissionerCommissioner"Commissioner" means the Commissioner of Labor and Workforce Development.Section 1 pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
c. c. The departmentDepartment"Department" means Department of Labor and Workforce Development.Section 1, in consultation with the Division on Civil Rights in the Department of Law and Public Safety, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
d. d. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) are intended to affirm certain rights of covered individualsCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 under the circumstances specified in P.L. , c. (C. ) (pending before the Legislature as this bill), and shall not be construed to reduce, limit, or curtail any rights of any covered individualCovered individual"Covered individual" means a candidate for employment or current employee being assessed by an automated employment decision tool to make an employment decision.Section 1 provided by law, or to limit the authority of the State or its agencies to investigate and enforce rights relating to bias and discrimination in employment, or to promulgate rules and regulations relating to bias and discrimination in employment.
Section 3 establishes the enforcement framework. Developer violations of the pre-sale bias audit requirements carry civil penalties of up to $1,500 for a first violation (including all same-day violations), increasing by 2% per subsequent day in violation, accruing daily per tool. Employer violations of the notice, disclosure, and public-posting requirements carry penalties of up to $500 per violation. Each failure to provide pre-use notice to a covered individual is a single violation; each failure to provide post-use notice within 30 days is a single violation with additional 30-day periods constituting separate violations.
Enforcement is agency-initiated: the Commissioner of Labor and Workforce Development recovers penalties in summary proceedings under the Penalty Enforcement Law of 1999. The Department, in consultation with the Division on Civil Rights, is directed to promulgate implementing regulations. Subsection (d) is a savings clause preserving all existing rights and agency authority regarding bias and discrimination in employment.
This act shall take effect on the first day of the third month next following enactment, except that the commissionerCommissioner"Commissioner" means the Commissioner of Labor and Workforce Development.Section 1 may take any anticipatory administrative action in advance as shall be necessary for implementation.
Section 4 provides that the act takes effect on the first day of the third month following enactment, with authority for the Commissioner to take anticipatory administrative action in advance as necessary for implementation.