WHAT THIS BILL REGULATES · 2 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) "Automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision tool" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.Labor Law § 203-g(1)(a)" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision toolsAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision tool" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.Labor Law § 203-g(1)(a) shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision tool" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.Labor Law § 203-g(1)(a)" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.
(1)(b) "Disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision tool. A disparate impact analysis shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-g(1)(b)" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision tool" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.Labor Law § 203-g(1)(a) is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision tool" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.Labor Law § 203-g(1)(a). A disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision tool. A disparate impact analysis shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-g(1)(b) shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision tool. A disparate impact analysis shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-g(1)(b) as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.
(1)(c) "Employment decisionEmployment decision"Employment decision" means to screen candidates for employment.Labor Law § 203-g(1)(c)" means to screen candidates for employment.
Subdivision 1 establishes the defined terms for the section. Automated employment decision tool is defined broadly to encompass any system — including personality tests, cognitive ability tests, resume scoring systems, and any AI or machine learning algorithm — that filters employment candidates without relying on individual decision-maker assessments. The definition explicitly carves out tools that neither automate nor materially impact natural persons. Disparate impact analysis must conform to the EEOC Uniform Guidelines on Employee Selection Procedures and must differentiate between selected and non-selected candidates.
(2) It shall be unlawful for an employer to implement or use an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision tool" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.Labor Law § 203-g(1)(a) that fails to comply with the following provisions:
(2)(a) 1 No less than annually, a disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision tool. A disparate impact analysis shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-g(1)(b) shall be conducted to assess the actual impact of any automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision tool" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.Labor Law § 203-g(1)(a) used by any employer to select candidates for jobs within the state. Such disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision tool. A disparate impact analysis shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-g(1)(b) shall be provided to the employer but shall not be publicly filed and shall be subject to all applicable privileges.
(2)(b) 2 A summary of the most recent disparate impact analysis of such tool as well as the distribution date of the tool to which the analysis applies has been made publicly available on the website of the employer or employment agency prior to the implementation or use of such tool.
(2)(c) 3 No less than annually, any employer using an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other artificial intelligence or machine learning algorithms. The term "automated employment decision tool" does not include a tool that does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons.Labor Law § 203-g(1)(a) shall provide to the department such summary of the most recent disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision tool. A disparate impact analysis shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-g(1)(b) provided to the employer on that tool.
Subdivision 2 establishes the core compliance prerequisites for lawful use of an automated employment decision tool. It makes it unlawful for an employer to implement or use such a tool unless three conditions are met: an annual disparate impact analysis has been conducted, a summary of that analysis has been published on the employer's website before the tool is used, and the employer has submitted the summary annually to the Department of Labor.
The analysis itself is not publicly filed and remains subject to all applicable privileges, but a summary must be made publicly available. The annual submission to the department creates an ongoing regulatory disclosure obligation distinct from the public posting.
(3) The attorney general may initiate an investigation if a preponderance of the evidence, including the summary of the most recent disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision tool. A disparate impact analysis shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-g(1)(b) establishes a suspicion of a violation. The attorney general may also initiate in any court of competent jurisdiction any action or proceeding that may be appropriate or necessary for correction of any violation issued pursuant this section, including mandating compliance with the provisions of this section or such other relief as may be appropriate.
(4) The commissioner may initiate an investigation if a preponderance of the evidence, including the summary of the most recent disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial analysis, including but not limited to testing of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under article fifteen of the executive law. The results of such analysis shall be reported to the employer implementing or using an automated employment decision tool. A disparate impact analysis shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-g(1)(b) establishes a suspicion of a violation. The commissioner may also initiate in a court of competent jurisdiction any action or proceeding that may be appropriate or necessary for the correction of any violation issued pursuant to this section, including mandating compliance with the provisions of this section or such other relief as may be appropriate.
Subdivisions 3 and 4 establish dual enforcement authority. Both the Attorney General and the Commissioner of Labor may independently initiate investigations when a preponderance of the evidence — including the disparate impact analysis summary — establishes a suspicion of a violation. Either may bring an action in any court of competent jurisdiction for corrective relief, including mandating compliance. No private right of action is created.
(5) The department may promulgate rules and regulations as it deems necessary to effectuate the purposes of this section, on or before such effective date.
Subdivision 5 grants the Department of Labor discretionary rulemaking authority to promulgate rules and regulations necessary to effectuate the purposes of this section. This is a delegated authority provision, not a compliance obligation on employers.
This act shall take effect immediately.
The act takes effect immediately upon enactment. Because the bill was not enacted, no effective date is operative.