Regulon — NJ-S-3263 · NJ S 3263 (AI Video Interview Hiring)

Summary

NJ S 3263 regulates employers that use AI-enabled analysis of applicant-submitted video interviews in the hiring process. Before requesting a video interview, employers must notify applicants that AI will be used, explain how the AI works and what characteristics it evaluates, and obtain written consent. Employers may not share applicant videos beyond necessary service providers and must delete videos within 30 days upon applicant request. Employers must also collect and annually report race and ethnicity demographic data on interview and hiring outcomes to the Department of Labor and Workforce Development, which will analyze the data for racial bias. Violations are subject to civil penalties of $500 for a first offense and $1,000 for subsequent offenses.

Enforcement & Penalties

Enforcement Authority

Civil penalties collected pursuant to the Penalty Enforcement Law of 1999, P.L.1999, c.274 (C.2A:58-10 et seq.). Enforcement is through summary proceedings in municipal court or Superior Court. The Department of Labor and Workforce Development receives annual demographic data reports and analyzes them for racial bias, but is not expressly granted enforcement authority over the act's substantive provisions. No private right of action is created.

Penalties

Civil penalty of $500 for a first offense and $1,000 for any subsequent offense, collected pursuant to the Penalty Enforcement Law of 1999. No private damages, injunctive relief, or attorney fee provisions are included.

Who Is Covered

"employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.

Compliance Obligations 6 obligations · click obligation ID to open requirement page

T-01 AI Identity Disclosure · T-01.1 · Deployer · Employment

Section 1.a.(1)-(3)

Plain Language

Before requesting an AI-analyzed video interview, employers must: (1) notify the applicant that AI may be used to analyze their video and assess their fitness, (2) explain how the AI works and what types of characteristics it evaluates, and (3) obtain written consent (which may be electronic) to be evaluated by the AI. If an applicant does not consent, the employer may not use AI to evaluate that applicant. All three steps — notice, explanation, and consent — must be completed before the interview takes place. This combines AI identity disclosure with an informed consent requirement.

Statutory Text

a. An employer 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 employer shall not use artificial intelligence to evaluate an applicant who has not consented to the use of artificial intelligence analysis.

D-01 Automated Processing Rights & Data Controls · D-01.4 · Deployer · Employment

Section 1.b.

Plain Language

Employers may only share applicant video recordings with service providers whose expertise or technology is necessary for evaluating the applicant's fitness for the position. This is a purpose limitation — the video cannot be shared for any reason unrelated to the applicant evaluation. The restriction applies to all recipients, not just AI vendors, encompassing any person who might otherwise receive the video.

Statutory Text

An employer 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.

D-01 Automated Processing Rights & Data Controls · Deployer · Employment

Section 1.c.

Plain Language

Applicants have the right to request deletion of their video interviews. Upon receiving such a request, the employer must delete the videos within 30 days and instruct all third parties who received copies — including service providers — to also delete all copies, including electronic backups. Third-party recipients must comply with the employer's deletion instructions. This creates both an individual deletion right for applicants and a downstream deletion cascade obligation for employers and their vendors.

Statutory Text

Upon request from the applicant, an employer, 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 employer's instructions.

H-02 Non-Discrimination & Bias Assessment · H-02.1 · Deployer · Employment

Section 1.d.

Plain Language

Employers using AI video interview analysis to screen candidates for in-person interviews must collect race and ethnicity demographic data at two stages: (1) which applicants are and are not advanced to in-person interviews following AI analysis, and (2) which applicants are ultimately offered positions or hired. This is a data collection and recordkeeping obligation that feeds into the annual reporting requirement under subsection e. The data enables analysis of whether AI-driven screening produces racially disparate outcomes.

Statutory Text

An employer 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.

R-02 Regulatory Disclosure & Submissions · R-02.1 · Deployer · Employment

Section 1.e.

Plain Language

Employers must submit the race and ethnicity demographic data collected under subsection d. to the New Jersey Department of Labor and Workforce Development on an annual basis. This is a proactive, scheduled regulatory submission — employers cannot wait to be asked. The Department will use this data to analyze whether AI video interview tools produce racial bias in hiring outcomes.

Statutory Text

The demographic data collected under subsection d. of this section shall be reported annually to the Department of Labor and Workforce Development.

Other · Employment

Section 1.f.

Plain Language

The Department of Labor and Workforce Development must analyze the demographic data submitted by employers and report annually to the Governor and Legislature on whether the data discloses racial bias in AI-assisted hiring. This provision directs government agency action and creates no new compliance obligation for employers or AI developers.

Statutory Text

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.