WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
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" includes 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" includes 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 sage, 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 sage, 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. "Candidate for employmentCandidate for employment"Candidate for employment" means a person who has applied for a specific employment position by submitting the necessary information or items in the format required by the employer or employment agency.Section 1" means a person who has applied for a specific employment position by submitting the necessary information or items in the format required by the employerEmployer"Employer" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).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. "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 employmentCandidate for employment"Candidate for employment" means a person who has applied for a specific employment position by submitting the necessary information or items in the format required by the employer or employment agency.Section 1 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. "EmployerEmployer"Employer" includes 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" includes 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. "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 employmentCandidate for employment"Candidate for employment" means a person who has applied for a specific employment position by submitting the necessary information or items in the format required by the employer or employment agency.Section 1 or otherwise to help decide compensation or any other terms, conditions, or privileges of employment. "Employment agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43). "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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1, has an employment relationship with an employerEmployer"Employer" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1 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 sage, 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" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1 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. "Machine learning, statistical modeling, data analytics, or artificial intelligenceMachine learning, statistical modeling, data analytics, or artificial intelligence"Machine learning, statistical modeling, data analytics, or artificial intelligence" means a group of rule-based, mathematical, or computation techniques: a. that generate a prediction, prescription, recommendation, or decision, meaning an expected outcome for an observation, such as an assessment of a covered individual's fit or likelihood of success, or that generate a classification, meaning an assignment of an observation to a group, such as categorizations based on skill sets or aptitude; and b. for which a computer program implementing the mathematical or computational technique, at least in part identifies the inputs, the relative importance placed on those inputs, and, if applicable, other parameters for the models in order to improve the accuracy of the task performed by the technique.Section 1" means a group of rule-based, mathematical, or computation techniques: a. that generate a prediction, prescription, recommendation, or decision, meaning an expected outcome for an observation, such as an assessment of 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's fit or likelihood of success, or that generate a classification, meaning an assignment of an observation to a group, such as categorizations based on skill sets or aptitude; and b. for which a computer program implementing the mathematical or computational technique, at least in part identifies the inputs, the relative importance placed on those inputs, and, if applicable, other parameters for the models in order to improve the accuracy of the task performed by the technique. "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. "Test dataTest data"Test data" means data used to conduct a bias audit that is not training data.Section 1" means data used to conduct 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1 that is not training dataTraining data"Training data" means data used in an employer or employment agency's use of an automated employment decision tool to assess candidates for employment, termination, compensation changes, performance improvement, or employees for promotion.Section 1. "Training dataTraining data"Training data" means data used in an employer or employment agency's use of an automated employment decision tool to assess candidates for employment, termination, compensation changes, performance improvement, or employees for promotion.Section 1" means data used in an employerEmployer"Employer" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1's 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 to assess candidates for employment, termination, compensation changes, performance improvement, or employees for promotion.
Section 1 establishes the definitions governing the bill's scope. The defined term automated employment decision tool is broad — any machine-based system that makes predictions, recommendations, or decisions influencing recruitment, workforce, or employment decisions. The definition of category is notably expansive compared to comparable laws like NYC Local Law 144, covering sex, race/color/national origin/ethnicity, age, religion, marital or familial status, disability, sexual orientation, gender identity, and income derived from public assistance programs. The independent auditor definition imposes strict conflict-of-interest bars — the auditor may not have been involved in using, developing, or distributing the tool, may not have an employment relationship with the employer or tool vendor, and may not hold a direct or material indirect financial interest in either.
a 1 An employerEmployer"Employer" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1 shall not use or continue to use 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 if more than one year has passed since 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.
b(1)–(5) 2 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1 shall, at a minimum: (1) calculate the 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 for each 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 or the 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 if the outcome is continuous for each 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; (2) calculate the 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 for each 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; (3) ensure that the calculations required in paragraphs (1) and (2) of this subsection separately calculate the impact 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 on: (a) sex categories, such as the 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 for selection of male candidates versus female candidates; (b) race, color, national origin, and ethnicity categories, such as the 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 for selection of Hispanic or Latino candidates versus Black or African American Non-Hispanic or Non-Latino candidates; (c) age categories, such as the 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 for selection of older 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 versus younger 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; (d) marital or familial status categories, such as the 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 for selection of married 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 versus unmarried 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; (e) disability categories, such as the 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 for selection 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 with disabilities versus 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 without disabilities; (f) religion categories; such as the 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 for selection of Hindu 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 versus Buddhist 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; (g) sexual orientation categories, such as the 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 for selection of heterosexual 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 versus covered individuals of other sexual orientations; (h) gender identity categories, such as the 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 for selection of cisgender 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 versus transgender 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; (i) income source categories, such as the 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 for selection 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 whose income is derived from any public assistance program versus 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 whose income is not derived from any public assistance program; and (j) intersectional categories of sex, ethnicity, and race, such as the 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 for selection of Hispanic or Latino male candidates versus Non-Hispanic or Non-Latino Black or African American female candidates; (4) ensure that the calculations in paragraphs (1), (2), and (3) of this subsection are performed for each group; and (5) indicate 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 are not included in the required calculations because they 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.
c 2 Notwithstanding the requirements of paragraphs (2) and (3) of subsection b. of this section, 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 may exclude 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 that represents less than two percent of the data being used for 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1 from the required calculations for 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. Where such 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 is excluded, the summary of results shall include the 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's justification for the exclusion, as well as the number of applicants and 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 or 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 for the excluded 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 2 contains the bill's core operative obligation: employers and employment agencies may not use an automated employment decision tool unless it has been subject to an independent bias audit within the preceding year. The bias audit must calculate selection rates or scoring rates and impact ratios across every protected category defined in Section 1 — including intersectional categories of sex, ethnicity, and race. The audit must also report individuals excluded from calculations because they fall within an unknown category. An independent auditor may exclude from impact-ratio calculations any category representing less than two percent of the audit data, provided the exclusion is justified and the excluded category's applicant count and selection or scoring rate are disclosed.
a 3 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1 conducted pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall use training data 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 training dataTraining data"Training data" means data used in an employer or employment agency's use of an automated employment decision tool to assess candidates for employment, termination, compensation changes, performance improvement, or employees for promotion.Section 1 used to conduct 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1 may be from one or more employersEmployer"Employer" includes 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 agencies that 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. However, an individual employerEmployer"Employer" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1 may rely on 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 that uses the training data of other employersEmployer"Employer" includes 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 agencies only in the following circumstances: (1) if that employerEmployer"Employer" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1 provided training dataTraining data"Training data" means data used in an employer or employment agency's use of an automated employment decision tool to assess candidates for employment, termination, compensation changes, performance improvement, or employees for promotion.Section 1 from its own 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 to the 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 conducting 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1; or (2) if that employerEmployer"Employer" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1 has never used 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 3 Notwithstanding the requirements of subsection a. of this section, an employerEmployer"Employer" includes 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 agencyEmployment agency"Employment agency" means the same as that term is defined in section 1 of P.L.1989, c.331 (C.34:8-43).Section 1 may rely on 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1 that uses test dataTest data"Test data" means data used to conduct a bias audit that is not training data.Section 1 if insufficient training dataTraining data"Training data" means data used in an employer or employment agency's use of an automated employment decision tool to assess candidates for employment, termination, compensation changes, performance improvement, or employees for promotion.Section 1 is available to conduct a statistically significant 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1. If 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1 uses test dataTest data"Test data" means data used to conduct a bias audit that is not training data.Section 1, the summary of results of 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 sage, secure and trustworthy use of the automated employment decision tool in employment decisions.Section 1 shall explain why training dataTraining data"Training data" means data used in an employer or employment agency's use of an automated employment decision tool to assess candidates for employment, termination, compensation changes, performance improvement, or employees for promotion.Section 1 was not used and describe how the test dataTest data"Test data" means data used to conduct a bias audit that is not training data.Section 1 used was generated and obtained.
Section 3 establishes requirements for the data used in bias audits. The default rule is that audits must use training data from the employer's or employment agency's own use of the tool. An employer may rely on a bias audit that pools training data from multiple employers only if it contributed its own training data to the auditor, or if it has never used the tool before. Test data may be used only when insufficient training data is available for a statistically significant audit, and the audit summary must explain why training data was not used and describe how the test data was generated and obtained.
This act shall take effect on the first day of the seventh month next following the date of enactment, except that the Commissioner of Labor and Workforce Development may take any anticipatory administrative action in advance as shall be necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill).
Section 4 provides that the act takes effect on the first day of the seventh month following enactment. The Commissioner of Labor and Workforce Development is authorized to take anticipatory administrative action — such as rulemaking — in advance of the effective date as necessary for implementation.