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

Summary

Regulates employers in New Jersey that use artificial intelligence to analyze applicant-submitted video interviews during the hiring process. Employers must notify applicants before the interview that AI may be used, explain how the AI works and what characteristics it evaluates, and obtain written consent before using AI analysis. Employers must delete video interviews within 30 days upon applicant request and may only share videos with service providers necessary to evaluate applicant fitness. Employers must collect and annually report race and ethnicity demographic data on applicants who are and are not advanced through the AI screening process to the Department of Labor and Workforce Development. Violations carry 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.). Under that law, penalties are collected in a summary proceeding brought by a designated public official (typically the Commissioner of Labor and Workforce Development or the Attorney General). No private right of action is created by this bill. 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 substantive employer obligations.

Penalties

Civil penalty of $500 for a first offense and $1,000 for any subsequent offense. No provision for actual damages, injunctive relief, or attorney fees. Penalties are collected through a summary proceeding under the Penalty Enforcement Law of 1999.

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 5 obligations · click obligation ID to open requirement page

H-01 Human Oversight of Automated Decisions · H-01.3 · Deployer · Employment

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

Plain Language

Before requesting an applicant to complete a video interview that will be analyzed by AI, the employer must do three things: (1) notify the applicant that AI may be used to analyze the video and assess their fitness for the position; (2) explain how the AI works and what general types of characteristics it evaluates; and (3) obtain written consent (which may be electronic) from the applicant to be evaluated by the AI system. If the applicant does not consent, the employer may not use AI to evaluate that applicant. All three steps must be completed before the interview takes place.

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 interviews with service providers whose expertise or technology is necessary to evaluate the applicant's fitness for the position. This limits secondary use and distribution of applicant video data — the employer cannot share recordings with third parties for marketing, training unrelated AI models, or any purpose other than evaluating the specific applicant's suitability for the role.

Statutory Text

b. 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 · D-01.2 · Deployer · Employment

Section 1.c.

Plain Language

Applicants have the right to request deletion of their video interviews. Upon receiving the request, the employer must delete the videos within 30 days and instruct all third parties (including service providers) who received copies to delete them as well, including all backup copies. Third parties and service providers are independently obligated to comply with the employer's deletion instructions. This functions as a right-to-delete specific to AI video interview data.

Statutory Text

c. 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.

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

Section 1.d.-e.

Plain Language

Employers using AI video interview analysis to screen applicants for in-person interviews must collect demographic data on the race and ethnicity of applicants at two stages: (1) those who are and are not selected for in-person interviews after AI screening, and (2) those who are offered positions or hired. This data must be reported annually to the Department of Labor and Workforce Development. The obligation requires employers to both collect race/ethnicity data from applicants and submit it on a defined schedule — this is an ongoing annual reporting requirement, not a one-time filing.

Statutory Text

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

H-02 Non-Discrimination & Bias Assessment · H-02.4 · Government · Employment

Section 1.f.

Plain Language

The Department of Labor and Workforce Development must annually analyze the demographic data submitted by employers and report to the Governor and Legislature whether the data reveals racial bias in AI-enabled hiring. While this provision directly obligates the Department rather than employers, employers should be aware that their submitted data will be analyzed for racial bias indicators and the results will be made public through legislative reporting. This creates an indirect accountability mechanism — if racial bias patterns emerge, employers may face regulatory scrutiny or legislative action.

Statutory Text

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.