WHAT THIS BILL REGULATES · 3 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 this act: "Automated employment decision toolAutomated employment decision tool"Automated employment decision tool" or "AEDT" means any system the function of which is governed by statistical theory, or systems the parameters of which are defined by systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests, and other learning algorithms, which automatically filter candidates or prospective candidates for hire or for any term, condition, or privilege of employment in a way that establishes a preferred candidate or candidates.Section 1" or "AEDT" means any system the function of which is governed by statistical theory, or systems the parameters of which are defined by systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests, and other learning algorithms, which automatically filter candidates or prospective candidates for hire or for any term, condition, or privilege of employment in a way that establishes a preferred candidate or candidates. "Bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1" means an impartial evaluation, including but not limited to testing, of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" or "AEDT" means any system the function of which is governed by statistical theory, or systems the parameters of which are defined by systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests, and other learning algorithms, which automatically filter candidates or prospective candidates for hire or for any term, condition, or privilege of employment in a way that establishes a preferred candidate or candidates.Section 1 to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment. "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 any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1" means any component 1 categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1 required to be reported by 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 pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission 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 Information Report EEO-1. "Distribution dateDistribution date"Distribution date" means the date the employer or employment agency began using a specific AEDT.Section 1" means the date 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 began using a specific AEDT. "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 determination about whether a candidate for employment or employee being considered for promotion 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). "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. "Historical dataHistorical data"Historical data" means data collected during an employer or employment agency's use of an AEDT to assess candidates for employment or employees for promotion.Section 1" means data collected during 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 AEDT to assess candidates for employment or employees for promotion. "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 AEDT. An auditor shall not be considered independent if the auditor: a. Is or was involved in using, developing, or distributing the AEDT; 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 AEDT or with a vendor that developed or distributes the AEDT; 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 AEDT or in a vendor that developed or distributed the AEDT.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 AEDT. An auditor shall not be considered independent if the auditor: a. Is or was involved in using, developing, or distributing the AEDT; b. At any point during the bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.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 AEDT or with a vendor that developed or distributes the AEDT; or c. At any point during the bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.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 AEDT or in a vendor that developed or distributed the AEDT. "Impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1" means either the selection rateSelection rate"Selection rate" means the rate at which individuals in a category are either selected to move forward in the hiring process or assigned a classification by an AEDT. This rate may be calculated by dividing the number of individuals in the category moving forward or assigned a classification by the total number of individuals in the category who applied for a position or were considered for promotion.Section 1 for a categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1 divided by the selection rate of the most selected categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.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 AEDT.Section 1 for a categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1 divided by 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 AEDT.Section 1 for the highest scoring categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.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 mathematical, computer-based techniques: a. That generate a prediction, meaning an expected outcome for an observation, such as an assessment of a candidate'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 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 prediction or classification.Section 1" means a group of mathematical, computer-based techniques: a. That generate a prediction, meaning an expected outcome for an observation, such as an assessment of a candidate'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 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 prediction or classification. "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 AEDT.Section 1" means the rate at which individuals in a categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1 receive a score above the sample's median score, where the score has been calculated by an AEDT. "ScreenScreen"Screen" means to make a determination about whether a candidate for employment or employee being considered for promotion should be selected or advanced in the hiring or promotion process.Section 1" means to make a determination about whether 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 employee being considered for promotion should be selected or advanced in the hiring or promotion process. "Selection rateSelection rate"Selection rate" means the rate at which individuals in a category are either selected to move forward in the hiring process or assigned a classification by an AEDT. This rate may be calculated by dividing the number of individuals in the category moving forward or assigned a classification by the total number of individuals in the category who applied for a position or were considered for promotion.Section 1" means the rate at which individuals in a categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1 are either selected to move forward in the hiring process or assigned a classification by an AEDT. This rate may be calculated by dividing the number of individuals in the categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1 moving forward or assigned a classification by the total number of individuals in the categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1 who applied for a position or were considered for promotion. "Simplified outputSimplified output"Simplified output" means a prediction or classification as specified in the definition for "machine learning, statistical modelling, data analytics, or artificial intelligence." A simplified output may take the form of a: a. Score, such as rating a candidate's estimated technical skills; b. Tag or categorization, such as categorizing a candidate's resume based on key words, assigning a skill or trait to a candidate; c. Recommendation, such as whether a candidate should be given an interview; or d. Ranking, such as arranging a list of candidates based on how well their cover letters match the job description. "Simplified output" does not refer to the output from analytical tools that translate or transcribe existing text, such as converting a resume from a PDF or transcribing a video or audio interview.Section 1" means a prediction or classification as specified in the definition for "machine learning, statistical modelling, data analytics, or artificial intelligence." A simplified outputSimplified output"Simplified output" means a prediction or classification as specified in the definition for "machine learning, statistical modelling, data analytics, or artificial intelligence." A simplified output may take the form of a: a. Score, such as rating a candidate's estimated technical skills; b. Tag or categorization, such as categorizing a candidate's resume based on key words, assigning a skill or trait to a candidate; c. Recommendation, such as whether a candidate should be given an interview; or d. Ranking, such as arranging a list of candidates based on how well their cover letters match the job description. "Simplified output" does not refer to the output from analytical tools that translate or transcribe existing text, such as converting a resume from a PDF or transcribing a video or audio interview.Section 1 may take the form of a: a. Score, such as rating a candidate's estimated technical skills; b. Tag or categorization, such as categorizing a candidate's resume based on key words, assigning a skill or trait to a candidate; c. Recommendation, such as whether a candidate should be given an interview; or d. Ranking, such as arranging a list of candidates based on how well their cover letters match the job description. "Simplified outputSimplified output"Simplified output" means a prediction or classification as specified in the definition for "machine learning, statistical modelling, data analytics, or artificial intelligence." A simplified output may take the form of a: a. Score, such as rating a candidate's estimated technical skills; b. Tag or categorization, such as categorizing a candidate's resume based on key words, assigning a skill or trait to a candidate; c. Recommendation, such as whether a candidate should be given an interview; or d. Ranking, such as arranging a list of candidates based on how well their cover letters match the job description. "Simplified output" does not refer to the output from analytical tools that translate or transcribe existing text, such as converting a resume from a PDF or transcribing a video or audio interview.Section 1" does not refer to the output from analytical tools that translate or transcribe existing text, such as converting a resume from a PDF or transcribing a video or audio interview. "Test dataTest data"Test data" means data used to conduct a bias audit that is not historical data.Section 1" means data used to conduct a bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1 that is not historical dataHistorical data"Historical data" means data collected during an employer or employment agency's use of an AEDT to assess candidates for employment or employees for promotion.Section 1.
Section 1 establishes the bill's definitional framework. The definition of automated employment decision tool (AEDT) is broad, covering any system governed by statistical theory or learning algorithms that automatically filters candidates or establishes preferred candidates for hire or any term, condition, or privilege of employment. The independent auditor definition includes detailed conflict-of-interest disqualifiers — an auditor cannot have been involved in developing, using, or distributing the AEDT, or have an employment or financial relationship with the employer, employment agency, or AEDT vendor during the audit. The category definition ties directly to EEO-1 reporting categories, anchoring the bias audit framework to existing federal reporting infrastructure.
(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 may not use or continue to use an AEDT if more than one year has passed since the most recent bias audit of the AEDT.
(b) 2 Where an AEDT selects candidates for employment or employees being considered for promotion to move forward in the hiring process or classifies them into groups, a bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1 shall, at a minimum: (1) calculate the selection rateSelection rate"Selection rate" means the rate at which individuals in a category are either selected to move forward in the hiring process or assigned a classification by an AEDT. This rate may be calculated by dividing the number of individuals in the category moving forward or assigned a classification by the total number of individuals in the category who applied for a position or were considered for promotion.Section 1 for each categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1; (2) calculate the impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1 for each categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1; (3) ensure that the calculations required in paragraphs (1) and (2) of this subsection separately calculate the impact of the AEDT on: (a) sex categories, such as the impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1 for selection of male candidates vs female candidates; (b) race and ethnicity categories, such as the impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1 for selection of Hispanic or Latino candidates versus Black or African American Non-Hispanic or Non-Latino candidates; and (c) intersectional categories of sex, ethnicity, and race, such as the impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.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 subdivision are performed for each group, if an AEDT classifies candidates for employment or employees being considered for promotion into specified groups, such as leadership styles; and (5) indicate the number of individuals the AEDT assessed that are not included in the required calculations because they fall within an unknown categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1.
(c) 2 Where an AEDT scores candidates for employment or employees being considered for promotion, a bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1 shall, at a minimum: (1) calculate the median score for the full sample of applicants; (2) calculate 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 AEDT.Section 1 for individuals in each categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1; (3) calculate the impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1 for each categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1; (4) ensure that the calculations required in paragraphs (1), (2), and (3) of this subsection separately calculate the impact of the AEDT on: (a) sex categories, meaning the impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1 for selection of male candidates vs female candidates; (b) race or ethnicity categories, meaning the impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1 for selection of Hispanic or Latino candidates versus Black or African American Non-Hispanic or Non-Latino candidates; and (c) intersectional categories of sex, ethnicity, and race, such as the impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1 for selection of Hispanic or Latino male candidates versus Non-Hispanic or Non-Latino Black or African American female candidates); and (5) indicate the number of individuals the AEDT assessed that are not included in the required calculations because they fall within an unknown categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1.
(d) 2 Notwithstanding the requirements of paragraphs (2) and (3) of subsection b. and paragraphs (3) and (4) of subsection c., 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 AEDT. An auditor shall not be considered independent if the auditor: a. Is or was involved in using, developing, or distributing the AEDT; 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 AEDT or with a vendor that developed or distributes the AEDT; 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 AEDT or in a vendor that developed or distributed the AEDT.Section 1 may exclude a categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1 that represents less than two percent of the data being used for the bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1 from the required calculations for impact ratioImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1. Where such a categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.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 AEDT. An auditor shall not be considered independent if the auditor: a. Is or was involved in using, developing, or distributing the AEDT; 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 AEDT or with a vendor that developed or distributes the AEDT; 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 AEDT or in a vendor that developed or distributed the AEDT.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 AEDT.Section 1 or selection rateSelection rate"Selection rate" means the rate at which individuals in a category are either selected to move forward in the hiring process or assigned a classification by an AEDT. This rate may be calculated by dividing the number of individuals in the category moving forward or assigned a classification by the total number of individuals in the category who applied for a position or were considered for promotion.Section 1 for the excluded categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1.
Section 2 establishes the core bias audit obligation. An employer or employment agency may not use an AEDT unless a bias audit has been completed within the preceding year. The section then prescribes detailed minimum audit requirements depending on whether the AEDT selects/classifies candidates or scores them. For selection-based AEDTs, the audit must calculate selection rates and impact ratios across sex, race/ethnicity, and intersectional categories. For scoring-based AEDTs, the audit must additionally calculate median scores and scoring rates. A de minimis exception permits exclusion of categories representing less than two percent of the data, provided the auditor justifies the exclusion and reports the excluded category's applicant count and rate.
(a) 3 Historical DataHistorical data"Historical data" means data collected during an employer or employment agency's use of an AEDT to assess candidates for employment or employees for promotion.Section 1. A bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1 conducted pursuant to section 2 of this act shall use historical data of the AEDT. The historical dataHistorical data"Historical data" means data collected during an employer or employment agency's use of an AEDT to assess candidates for employment or employees for promotion.Section 1 used to conduct a bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.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 AEDT. 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 AEDT that uses the historical 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 historical dataHistorical data"Historical data" means data collected during an employer or employment agency's use of an AEDT to assess candidates for employment or employees for promotion.Section 1 from its own use of the AEDT 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 AEDT. An auditor shall not be considered independent if the auditor: a. Is or was involved in using, developing, or distributing the AEDT; 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 AEDT or with a vendor that developed or distributes the AEDT; 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 AEDT or in a vendor that developed or distributed the AEDT.Section 1 conducting the bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.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 AEDT.
(b) 3 Test DataTest data"Test data" means data used to conduct a bias audit that is not historical data.Section 1. 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, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1 that uses test dataTest data"Test data" means data used to conduct a bias audit that is not historical data.Section 1 if insufficient historical dataHistorical data"Historical data" means data collected during an employer or employment agency's use of an AEDT to assess candidates for employment or employees for promotion.Section 1 is available to conduct a statistically significant bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1. If a bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1 uses test dataTest data"Test data" means data used to conduct a bias audit that is not historical data.Section 1, the summary of results of the bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1 shall explain why historical dataHistorical data"Historical data" means data collected during an employer or employment agency's use of an AEDT to assess candidates for employment 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 historical data.Section 1 used was generated and obtained.
Section 3 establishes the data requirements for bias audits. Audits must use historical data from actual AEDT use. An employer may rely on a multi-employer audit only if it contributed its own historical data or has never previously used the AEDT. Where insufficient historical data exists for statistical significance, test data may be used, but the audit results must explain why historical data was unavailable and describe how the test data was generated and obtained.
(a) 4 Before the use of an AEDT, 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 in the State shall make the following publicly available on the employment section of its website in a clear and conspicuous manner: (1) the date of the most recent bias audit of the AEDT 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, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1, the number of individuals the AEDT assessed that fall within an unknown categoryCategory"Category" means any component 1 category required to be reported by employers pursuant to subsection (c) of 42 U.S.C. s.2000e-8 as specified in 29 C.F.R. s.1602.7, as designated on the Equal Employment Opportunity Commission Employer Information Report EEO-1.Section 1, and the number of applicants or candidates, the selection 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 AEDT.Section 1, as applicable, and the impact ratiosImpact ratio"Impact ratio" means either the selection rate for a category divided by the selection rate of the most selected category; or the scoring rate for a category divided by the scoring rate for the highest scoring category.Section 1 for all categories; and (2) the distribution date of the AEDT.
(b) 4 The requirements of subsection a. of this section may be met with an active hyperlink to a website containing the required summary of results and distribution dateDistribution date"Distribution date" means the date the employer or employment agency began using a specific AEDT.Section 1, provided that the link is clearly identified as a link to results of the bias auditBias audit"Bias audit" means an impartial evaluation, including but not limited to testing, of an automated employment decision tool to assess its predicted compliance with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and any other applicable law relating to discrimination in employment.Section 1.
(c) 4 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 keep the summary of results and distribution dateDistribution date"Distribution date" means the date the employer or employment agency began using a specific AEDT.Section 1 posted for at least six months after its latest use of the AEDT 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.
Section 4 requires employers and employment agencies to publicly post bias audit results on the employment section of their website before using an AEDT. The posted information must include the date of the most recent audit, a summary of results (including data source, explanation, unknown-category counts, applicant numbers, selection or scoring rates, and impact ratios for all categories), and the distribution date. The posting obligation may be satisfied with an active hyperlink clearly identified as linking to the bias audit results. The summary must remain posted for at least six months after the employer's latest use of the AEDT.
(a)–(b) 5 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 that uses an AEDT 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 notice to the candidates or applicants of the use of an AEDT that includes instructions for how a person may request an alternative selection process or a reasonable accommodation under other laws, if applicable. Nothing in this act requires 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 to provide an alternative selection process. To comply with 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 in the State may provide notice to 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 by doing any of the following: (1) provide notice on the employment section of its website in a clear and conspicuous manner at least 10 business days before use of an AEDT; (2) provide notice in a job posting at least 10 business days before use of an AEDT; or, (3) provide notice to candidates for employment via U.S. mail or e-mail at least 10 business days before use of an AEDT.
(c) 5 To comply with the provisions of this act, 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 provide notice to an employee being considered for promotion who resides in the State by doing any of the following: (1) provide notice in a written policy or procedure that is provided to employees at least 10 business days before use of an AEDT; (2) provide notice in a job posting at least 10 business days before use of an AEDT; or, (3) provide notice via U.S. mail or e-mail at least 10 business days before use of an AEDT.
(d) 6 To comply with the provisions of this act, 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: (1) provide information on the employment section of its website in a clear and conspicuous manner about its AEDT data retention policy, the type of data collected for the AEDT, and the source of the data; (2) post instructions on the employment section of its website in a clear and conspicuous manner for how to make a written request for such information, and if a written request is received, provide such information within 30 days; and (3) provide an explanation to 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 employee being considered for promotion why disclosure of the information would violate local, State, or federal law, or interfere with a law enforcement investigation.
Section 5 imposes two distinct obligations. First, employers must notify candidates and employees being considered for promotion that an AEDT will be used, at least 10 business days in advance, with instructions for requesting an alternative selection process or reasonable accommodation. The notice may be provided via the employer's website, job postings, or direct communication. The bill expressly disclaims any requirement to actually provide an alternative selection process. Second, employers must disclose on the employment section of their website the AEDT data retention policy, the types of data collected, and data sources, and must provide a mechanism for written requests for this information with a 30-day response window.
This act shall take effect on the first day of the seventh month next following the date of enactment, except that the commissioner may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
Section 6 provides that the act takes effect on the first day of the seventh month following enactment, with authority for the commissioner to take anticipatory administrative action in advance as necessary for implementation.