WHAT THIS BILL REGULATES · 4 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.
1(a)(1)–(3) 1 a. An employerEmployer"employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.Section 1(h) in the State that requests applicants to record video interviews and uses an artificial intelligence analysis of the applicant-submitted video shall, prior to making the request for a video interview: (1) notify an applicant before the interview that artificial intelligence may be used to analyze the applicant's video interview and consider the applicant's fitness for the position; (2) provide an applicant with information before the interview explaining how the artificial intelligence works and what general types of characteristics it uses to evaluate applicants; and (3) obtain, before the interview, written consent, which may be electronic, from the applicant to be evaluated by the artificial intelligence program as described in the information provided. An employerEmployer"employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.Section 1(h) shall not use artificial intelligence to evaluate an applicant who has not consented to the use of artificial intelligence analysis.
1(b) 2 b. An employerEmployer"employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.Section 1(h) shall not share an applicant's video except with a service provider whose expertise or technology is necessary to evaluate the applicant's fitness for a position.
1(c) 3 c. Upon request from the applicant, an employerEmployer"employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.Section 1(h), within 30 days after receipt of the request, shall delete an applicant's interviews and instruct any other persons who received copies of the applicant's video interviews to also delete the videos, including all electronically generated backup copies. Any other person or service provider shall comply with the employerEmployer"employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.Section 1(h)'s instructions.
1(d)(1)–(2) 4 d. An employerEmployer"employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.Section 1(h) that uses an artificial intelligence analysis of a video interview to determine whether an applicant will be selected for an in-person interview shall collect and report the following demographic data: (1) the race and ethnicity of applicants who are and are not afforded the opportunity for an in-person interview after the use of artificial intelligence analysis; and (2) the race and ethnicity of applicants who are offered a position or hired.
1(e) 5 e. The demographic data collected under subsection d. of this section shall be reported annually to the Department of Labor and Workforce Development.
1(f) f. The Department of Labor and Workforce Development shall analyze the data reported in accordance with subsection e. of this act and report to the Governor and the Legislature, as provided pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), each year whether the data discloses a racial bias in the use of artificial intelligence.
1(g) g. A person who violates any provision of this act shall be liable for a civil penalty of $500 for a first offense and $1,000 for any subsequent offense. The civil penalty shall be collected pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
1(h) h. As used in this section, "employerEmployer"employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.Section 1(h)" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.
Section 1 establishes a comprehensive regulatory framework for employers that use artificial intelligence to analyze applicant-submitted video interviews. The section imposes three categories of obligations: (1) pre-interview transparency and consent requirements, (2) data handling restrictions including video sharing limitations and deletion rights, and (3) demographic data collection and annual reporting to identify potential racial bias in AI-driven hiring decisions.
The consent mechanism is notable for requiring both notification and explanation of how the AI works and what characteristics it evaluates, followed by written consent — creating a layered informed-consent framework rather than a simple notice-and-proceed model. The demographic reporting obligation is unusual in that the Department of Labor and Workforce Development is tasked with analyzing the data for racial bias and reporting findings to the Governor and Legislature, but is not designated as the enforcement authority for the bill's civil penalties.
2. This act shall take effect immediately.
Section 2 provides that the act takes effect immediately upon enactment. There is no delayed implementation period or phased compliance schedule.