Regulon — VA-HB-1514 · VA HB 1514 (Employment Automated Decision Systems)

Summary

Virginia HB 1514 would have regulated the use of automated decision systems in employment decisions across three tiers: state agencies (§ 2.2-1202.2), local government entities (§ 15.2-1500.2), and private employers (§ 40.1-28.7:12). All three tiers prohibit making employment decisions solely based on automated system outputs without human involvement. State agencies and local governments face additional obligations including disclosure to individuals about the system's use and data inputs, providing opt-out rights, annual bias testing and compliance certification, staff training, and establishing complaint processes. Private employers are subject only to the human-in-the-loop requirement, with civil penalties up to $500 for a first violation and $1,500 for subsequent violations enforced by the Commissioner of Labor and Industry. The bill was left in the Committee on Appropriations and did not advance.

Enforcement & Penalties

Enforcement Authority

For private employers: The Commissioner of Labor and Industry has enforcement authority, initiated by the Commissioner via certified mail notice of alleged violations. Employers may request an informal conference within 15 days of receipt of notice. The Commissioner or authorized representative may petition a circuit court for injunctive or other relief. For state agencies: The Director of the Department of Human Resource Management has oversight authority. For local government entities: No specific enforcement mechanism is designated beyond the self-imposed compliance obligations. No private right of action is created.

Penalties

Civil penalty not to exceed $500 for a first violation and $1,500 for each subsequent violation, applicable only to private employers under § 40.1-28.7:12. Penalties are assessed by the Commissioner and paid to the Literary Fund. The Commissioner shall consider the size of the business and the gravity of the violation when determining penalty amounts. Injunctive relief is also available via circuit court petition. No monetary penalties are specified for state agency or local government violations.

Who Is Covered

"Employer" means the same as that term is defined in § 40.1-2.

"Automated decision system" means any computational process, including those derived from artificial intelligence systems or machine learning, used to make or assist in making decisions related to employment. "Automated decision system" does not include identity and access management tools, calculators, databases, datasets, or other compilations of data.

What Is Covered

Compliance Obligations 17 obligations · click obligation ID to open requirement page

H-01 Human Oversight of Automated Decisions · H-01.1 H-01.3 · Government · EmploymentGovernment System

Va. Code § 2.2-1202.2(B)(2)

Plain Language

State agencies using an automated decision system as a substantial factor in employment decisions must disclose to affected individuals five categories of information: (1) that an automated system is being used, (2) the system's intended employment use, (3) the types and sources of data inputs, (4) how the system factors into decision-making, and (5) the extent to which personal data will be shared with third parties or fed back into the system. This is a pre-decision notification and explanation obligation triggered whenever the automated system is a substantial factor in the employment decision.

Statutory Text

The Director shall require any state agency that uses an automated decision system as a substantial factor in any employment decision to: 2. Disclose (i) the fact that an automated decision system is being used; (ii) the intended use of the automated decision system, including evaluating job candidates, making compensation decisions, or considering employees for promotion; (iii) the type of data inputs received by the automated decision system and the source of such data; (iv) how the automated decision system will be used in the state agency's decision-making processes; and (v) the extent to which an individual's personal data will be shared with third parties or used as future inputs for the automated decision system;

D-01 Automated Processing Rights & Data Controls · D-01.3 · Government · EmploymentGovernment System

Va. Code § 2.2-1202.2(B)(3)

Plain Language

State agencies must provide all individuals the right to opt out of having an automated decision system used in employment decisions affecting them. Additionally, agencies must provide a separate accommodation process for individuals with disabilities to seek accommodations related to the automated decision system. The opt-out right is unconditional — individuals need not demonstrate a specific reason for opting out.

Statutory Text

The Director shall require any state agency that uses an automated decision system as a substantial factor in any employment decision to: 3. Provide to all individuals the right to opt out of the use of the automated decision system for employment decisions and a process by which individuals with disabilities may seek accommodations for the automated decision system;

H-02 Non-Discrimination & Bias Assessment · H-02.1 H-02.8 · Government · EmploymentGovernment System

Va. Code § 2.2-1202.2(B)(4)

Plain Language

State agencies must annually test their automated decision systems for algorithmic discrimination — meaning unlawful differential treatment or impact based on a broad list of protected characteristics — and certify the system's compliance with federal and state law. Testing may be performed by the agency itself or by a contractor engaged by the agency. This is an ongoing annual obligation, not a one-time pre-deployment check.

Statutory Text

The Director shall require any state agency that uses an automated decision system as a substantial factor in any employment decision to: 4. Annually test, or ensure that an appropriate contractor employed by such agency annually tests, the automated decision system for algorithmic discrimination and certify its compliance with federal and state law;

H-01 Human Oversight of Automated Decisions · H-01.6 · Government · EmploymentGovernment System

Va. Code § 2.2-1202.2(C)

Plain Language

State agencies are prohibited from making any employment decision without the involvement of a human decision maker. Agencies may not rely solely on an automated decision system's recommendation or prediction — a human must be meaningfully involved in every employment decision. This is a categorical human-in-the-loop requirement for all state agency employment decisions, not just high-stakes ones.

Statutory Text

No employment decision shall be made by a state agency without the involvement of a human decision maker. No state agency shall solely use any recommendation or prediction from an automated decision system to make an employment decision.

H-01 Human Oversight of Automated Decisions · H-01.5 · Government · EmploymentGovernment System

Va. Code § 2.2-1202.2(D)

Plain Language

The Department of Human Resource Management must create and publicize a dedicated complaint process for applicants and employees to raise concerns about the use of automated decision systems in state employment decisions. The process must include investigation and resolution mechanisms, and must be separate from the existing dispute resolution process under § 2.2-1202.1. This is an infrastructure-building obligation on the Department itself, distinct from giving individual employees a right to contest a specific decision.

Statutory Text

The Department shall establish and publicize a process for applicants for employment and employees to file concerns and complaints regarding the use of automated decision systems in the Commonwealth's employment decisions and a process for the investigation and resolution of any such concerns and complaints. Such process shall be separate and apart from the dispute resolution process described in § 2.2-1202.1.

Other · EmploymentGovernment System

Va. Code § 2.2-1202.2(B)(5)

Plain Language

State agencies must ensure staff handling personal data collected by automated decision systems comply with existing federal and state law and all applicable agency data agreements and privacy policies. This is a compliance pass-through reaffirming existing data governance obligations rather than creating new independent requirements.

Statutory Text

The Director shall require any state agency that uses an automated decision system as a substantial factor in any employment decision to: 5. Ensure that state agency staff who handle personal data collected by the automated decision system and the storage of such data do so in accordance with federal and state law and all state agency data agreements and privacy policies;

Other · EmploymentGovernment System

Va. Code § 2.2-1202.2(B)(6)

Plain Language

State agencies must train staff who use automated decision systems for employment decisions on compliance with applicable law and on ensuring that the systems do not produce algorithmic discrimination. This is a workforce training obligation rather than a system-level technical or governance requirement.

Statutory Text

The Director shall require any state agency that uses an automated decision system as a substantial factor in any employment decision to: 6. Train state agency staff who use the automated decision system for employment decisions to comply with applicable federal and state law and ensure that the automated decision system does not result in algorithmic discrimination.

Other · EmploymentGovernment System

Va. Code § 2.2-1202.2(B)(1)

Plain Language

State agencies must ensure that their automated decision systems and the use of those systems comply with existing federal and state law, including the Virginia Human Rights Act. This is a general compliance pass-through reaffirming existing anti-discrimination and employment law obligations in the AI context. It creates no new independent compliance obligation.

Statutory Text

The Director shall require any state agency that uses an automated decision system as a substantial factor in any employment decision to: 1. Ensure that the automated decision system and the use of such system complies with federal and state law, including the Virginia Human Rights Act (§ 2.2-3900 et seq.);

H-01 Human Oversight of Automated Decisions · H-01.1 H-01.3 · Government · EmploymentGovernment System

Va. Code § 15.2-1500.2(B)(2)

Plain Language

Local government entities using an automated decision system as a substantial factor in employment decisions must disclose to affected individuals five categories of information: that an automated system is being used, its intended employment use, the types and sources of data inputs, how the system factors into decision-making, and the extent personal data will be shared with third parties or reused. This mirrors the state agency disclosure obligation under § 2.2-1202.2(B)(2) but applies to local government instrumentalities.

Statutory Text

Any department, office, board, commission, agency, or instrumentality of local government that uses an automated decision system as a substantial factor in any employment decision shall: 2. Disclose (i) the fact that an automated decision system is being used; (ii) the intended use of the automated decision system, including evaluating job candidates, making compensation decisions, or considering employees for promotion; (iii) the type of data inputs received by the automated decision system and the source of such data; (iv) how the automated decision system will be used in the decision-making processes of the department, office, board, commission, agency, or instrumentality of local government; and (v) the extent to which an individual's personal data will be shared with third parties or used as future inputs for the automated decision system;

D-01 Automated Processing Rights & Data Controls · D-01.3 · Government · EmploymentGovernment System

Va. Code § 15.2-1500.2(B)(3)

Plain Language

Local government entities must provide all individuals the right to opt out of having an automated decision system used in employment decisions affecting them, and must establish a process for individuals with disabilities to seek accommodations. Mirrors the state agency obligation under § 2.2-1202.2(B)(3) but applies to local government instrumentalities.

Statutory Text

Any department, office, board, commission, agency, or instrumentality of local government that uses an automated decision system as a substantial factor in any employment decision shall: 3. Provide to all individuals the right to opt out of the use of the automated decision system for employment decisions and a process by which individuals with disabilities may seek accommodations for the automated decision system;

H-02 Non-Discrimination & Bias Assessment · H-02.1 H-02.8 · Government · EmploymentGovernment System

Va. Code § 15.2-1500.2(B)(4)

Plain Language

Local government entities must annually test their automated decision systems for algorithmic discrimination and certify compliance with federal and state law. Testing may be conducted internally or by a contractor. Mirrors the state agency obligation under § 2.2-1202.2(B)(4).

Statutory Text

Any department, office, board, commission, agency, or instrumentality of local government that uses an automated decision system as a substantial factor in any employment decision shall: 4. Annually test, or ensure that an appropriate contractor employed by such department, office, board, commission, agency, or instrumentality of local government annually tests, the automated decision system for algorithmic discrimination and certify its compliance with federal and state law;

H-01 Human Oversight of Automated Decisions · H-01.6 · Government · EmploymentGovernment System

Va. Code § 15.2-1500.2(C)

Plain Language

Local government entities are prohibited from making employment decisions without human involvement. They may not solely rely on automated decision system outputs. Mirrors the state agency obligation under § 2.2-1202.2(C).

Statutory Text

No employment decision shall be made by a department, office, board, commission, agency, or instrumentality of local government without the involvement of a human decision maker. No department, office, board, commission, agency, or instrumentality of local government shall solely use any recommendation or prediction from an automated decision system to make an employment decision.

H-01 Human Oversight of Automated Decisions · H-01.5 · Government · EmploymentGovernment System

Va. Code § 15.2-1500.2(D)

Plain Language

Local government entities using automated decision systems in employment decisions must create and publicize a complaint process for applicants and employees, including investigation and resolution mechanisms. Unlike the state agency version, there is no requirement for this process to be separate from existing dispute resolution processes. Mirrors the state agency obligation under § 2.2-1202.2(D) but for local government.

Statutory Text

Any department, office, board, commission, agency, or instrumentality of local government that uses an automated decision system as a substantial factor in any employment decision shall establish and publicize a process for applicants for employment and employees to file concerns and complaints regarding the use of automated decision systems in employment decisions and a process for the investigation and resolution of any such concerns and complaints.

Other · EmploymentGovernment System

Va. Code § 15.2-1500.2(B)(1)

Plain Language

Local government entities must ensure their automated decision systems comply with existing federal and state law, including the Virginia Human Rights Act. This is a compliance pass-through and does not create new obligations. Mirrors § 2.2-1202.2(B)(1) for state agencies.

Statutory Text

Any department, office, board, commission, agency, or instrumentality of local government that uses an automated decision system as a substantial factor in any employment decision shall: 1. Ensure that the automated decision system and the use of such system complies with federal and state law, including the Virginia Human Rights Act (§ 2.2-3900 et seq.);

Other · EmploymentGovernment System

Va. Code § 15.2-1500.2(B)(5)

Plain Language

Local government entities must ensure staff handling personal data from automated decision systems comply with existing federal and state law and all applicable data agreements and privacy policies. This is a compliance pass-through and does not create new independent obligations. Mirrors § 2.2-1202.2(B)(5) for state agencies.

Statutory Text

Any department, office, board, commission, agency, or instrumentality of local government that uses an automated decision system as a substantial factor in any employment decision shall: 5. Ensure that the staff of the department, office, board, commission, agency, or instrumentality of local government who handle personal data collected by the automated decision system and the storage of such data do so in accordance with federal and state law and all data agreements and privacy policies of such department, office, board, commission, agency, or instrumentality of local government;

Other · EmploymentGovernment System

Va. Code § 15.2-1500.2(B)(6)

Plain Language

Local government entities must train staff who use automated decision systems for employment decisions on applicable legal compliance and preventing algorithmic discrimination. Mirrors § 2.2-1202.2(B)(6) for state agencies.

Statutory Text

Any department, office, board, commission, agency, or instrumentality of local government that uses an automated decision system as a substantial factor in any employment decision shall: 6. Train the staff of the department, office, board, commission, agency, or instrumentality of local government who use the automated decision system for employment decisions to comply with applicable federal and state law and ensure that the automated decision system does not result in algorithmic discrimination.

H-01 Human Oversight of Automated Decisions · H-01.6 · Deployer · EmploymentAutomated Decisionmaking

Va. Code § 40.1-28.7:12(B)

Plain Language

Private employers may not make any employment decision without the involvement of a human decision maker. No employer may solely rely on automated decision system recommendations or predictions for employment decisions. This is the private-sector counterpart to the state and local government human-in-the-loop requirements. Note that the private employer definition of 'employment decision' adds the qualifier 'any final decision made by an employer,' narrowing the scope slightly compared to the government versions. Knowingly violating this requirement triggers civil penalties up to $500 for a first offense and $1,500 for subsequent offenses.

Statutory Text

No employment decision shall be made by an employer without the involvement of a human decision maker. No employer shall solely use any recommendation or prediction from an automated decision system to make an employment decision.