WHAT THIS BILL REGULATES · 5 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.
(a)(1)–(9) "AlgorithmAlgorithm"Algorithm" means a computerized procedure consisting of a set of steps used to accomplish a determined task.21 V.S.A. § 495o(a)(1)" means a computerized procedure consisting of a set of steps used to accomplish a determined task. (2) "Automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2)" means an algorithmAlgorithm"Algorithm" means a computerized procedure consisting of a set of steps used to accomplish a determined task.21 V.S.A. § 495o(a)(1) or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2)" includes algorithmsAlgorithm"Algorithm" means a computerized procedure consisting of a set of steps used to accomplish a determined task.21 V.S.A. § 495o(a)(1) and computational processes that are derived from machine learning, statistics, dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) processing, or artificial intelligence. (3) "Automated decision system outputAutomated decision system output"Automated decision system output" means information, data, assumptions, predictions, scoring, recommendations, decisions, or conclusions generated by an automated decision system.21 V.S.A. § 495o(a)(3)" means information, dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4), assumptions, predictions, scoring, recommendations, decisions, or conclusions generated by an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2). (4) "DataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4)" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6), including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address. (5) "Electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5)" means the collection of information concerning employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system. (6) "EmployeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7). (7) "EmployerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7)" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7)'s behalf. (8) "Employment-related decision" means any decision by an employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) that: (A) affects an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s compensation, benefits, or terms and conditions of employment; (B) relates to the discipline, evaluation, promotion, or termination of an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6); or (C) relates to the hiring of an individual or employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) for a position or job. (9) "Essential job functionEssential job function"Essential job function" means a fundamental duty of a job or position that an employee with that job or position must be able to perform.21 V.S.A. § 495o(a)(9)" means a fundamental duty of a job or position that an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) with that job or position must be able to perform.
Subsection (a) establishes definitions for nine key terms used throughout the section. The definitions are broadly drafted: electronic monitoring covers any non-in-person observation method, automated decision system encompasses any algorithm or computational process used in employment decisions (including those derived from machine learning or AI), and employer includes agents and contractors. The data definition is notably expansive, reaching biometric information, health and wellness data, private social media activity, and personal IP addresses.
(b)(1)–(5) 1 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall not engage in electronic monitoring of an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) unless all of the following requirements are met: (1) The employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7)'s purpose in utilizing the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) is to: (A) assist or allow the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) to accomplish an essential job functionEssential job function"Essential job function" means a fundamental duty of a job or position that an employee with that job or position must be able to perform.21 V.S.A. § 495o(a)(9); (B) monitor production processes or quality; (C) ensure compliance with applicable employment or labor laws; (D) protect the health, safety, or security of the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6); or (E) track time worked or production output for purposes of determining the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s compensation. (2) Electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) is necessary to accomplish the purpose identified pursuant to subdivision (1) of this subsection (b). (3) The specific form of electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) is the least invasive means, with respect to the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6), of accomplishing the purpose identified pursuant to subdivision (1) of this subsection (b). (4) The specific form of electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) is used with the smallest number of employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) and collects the smallest amount of dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) necessary to accomplish the purpose identified pursuant to subdivision (1) of this subsection (b). (5) The employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) ensures that only authorized persons have access to any dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) produced through the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) and that the dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) is only used for the purpose and duration that the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) has been notified of pursuant to subsection (c) of this section.
Subsection (b) creates a general prohibition on electronic monitoring of employees unless the employer satisfies a five-part test. The employer must demonstrate a legitimate purpose (assisting essential job functions, monitoring production, ensuring legal compliance, protecting employee health and safety, or tracking time/output for compensation), that monitoring is necessary for that purpose, that the chosen form is the least invasive means, that the scope is minimized (fewest employees and smallest amount of data), and that access controls and purpose limitations are in place. This framework effectively imposes a proportionality and data minimization standard on all workplace electronic surveillance.
(c)(1)(A)–(l) 2 At least 15 calendar days prior to commencing any form of electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5), an employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall provide notice of the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) to each employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) who will be subject to it. The notice shall, at a minimum, include the following information: (A) the specific form of electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5); (B) a description of the intended purpose of the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) and why the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) is necessary to accomplish that purpose; (C) a description of how any dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) generated by the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) will be used; (D) a description of the technologies that will be used to conduct the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5); (E) whether and, if so, how the dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) generated by the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) will be used to inform employment-related decisions; (F) the name of any person conducting electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) on the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7)'s behalf and any associated contract language related to the monitoring; (G) the name of any person, apart from the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7), who will have access to any dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) generated by the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) and the reason why the person will have access to the dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4); (H) the positions within the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) that will have access to any dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) generated by the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5); (I) when, where, and how frequently monitoring will occur; (J) the period of time for which any dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) generated by the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) will be retained by the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) or another person and when that dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) will be destroyed; (K) notice of how the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) may access the dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) generated by the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) and the process to correct any errors in the dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4); and (l) notice of the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s rights pursuant to this section.
(c)(2)(A)–(B) 2 Notice of electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) provided pursuant to this section shall be written in plain, clear, and concise language, and provided to each employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) in the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s primary language. (B) An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall provide a new, updated notice to employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) if it makes any significant changes to the manner of electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) or to the way that the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) utilizes the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) or any dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) generated by it.
(c)(3)(A)–(B) 2 Notwithstanding subdivision (1) of this subsection (c), prior notice of electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) shall not be required if: (A) the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) has reasonable grounds to believe that the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) is engaged in conduct that: (i) is illegal; (ii) violates the legal rights of the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) or another employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6); or (iii) creates a hostile work environment; and (B) the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) is reasonably likely to produce evidence of the conduct.
(c)(4)(A)–(B) 3 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) that utilizes electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) shall annually provide each of its employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) with a list of all electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) systems currently in use by the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) in relation to that employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6). The list shall be provided in the primary language of the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6). (B) As used in this subdivision (4), "currently in use" means that the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7): (i) is currently using the system in relation to the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6); (ii) used the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) system in relation to the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) within the past 90 days; or (iii) intends to use the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) system in relation to the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) within the next 30 days.
Subsection (c) imposes a detailed advance-notice requirement on employers commencing electronic monitoring. Employers must provide at least 15 calendar days of written notice covering twelve enumerated elements — the form and purpose of monitoring, data uses, technologies employed, whether data will inform employment decisions, identity of third parties with access, positions with access, monitoring frequency and location, data retention periods, employee data access and correction rights, and notice of statutory rights. Notice must be in the employee's primary language and updated upon any significant change to monitoring practices. An exception allows monitoring without prior notice where the employer has reasonable grounds to believe an employee is engaged in illegal, rights-violating, or hostile-work-environment conduct and monitoring is reasonably likely to produce evidence. Employers must also provide annual lists of all monitoring systems currently in use for each employee.
(d)(1)–(6) 4 Notwithstanding the purposes for electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) set forth in subdivision (b)(1) of this section, electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) shall not be used: (1) in any manner that violates State or federal labor or employment laws; (2) in relation to workers who are off-duty and not performing work-related tasks; (3) to identify employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) exercising legal rights; (4) for audio-visual monitoring of bathrooms, locker rooms, changing areas, breakrooms, smoking areas, employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) cafeterias, lounges, or other similarly private areas; (5) to determine the frequency with which employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) visit or use bathrooms, locker rooms, changing areas, breakrooms, smoking areas, employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) cafeterias, lounges, or other similarly private areas; or (6) for audio-visual monitoring of any space within an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s residence or personal vehicle, or a property owned or rented by the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6), unless the monitoring is necessary to ensure the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s health and safety or to verify the security of employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) or client dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4).
Subsection (d) establishes categorical prohibitions on specific forms of electronic monitoring regardless of whether the employer could otherwise satisfy the subsection (b) purpose test. Prohibited monitoring includes: monitoring that violates state or federal labor law, monitoring of off-duty employees, monitoring to identify employees exercising legal rights, audio-visual monitoring of private spaces (bathrooms, locker rooms, breakrooms, etc.), tracking frequency of private-area use, and audio-visual monitoring of employee residences, personal vehicles, or personal property — with narrow exceptions for health/safety and data security verification.
(e)(1)–(3) 5 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall not require an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) to install an application on a personal device for purposes of electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) or to wear a device or attach, embed, or physically implant a device on the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s clothing that can be used for electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5), unless the electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) is: (A) necessary to accomplish the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s essential job functionsEssential job function"Essential job function" means a fundamental duty of a job or position that an employee with that job or position must be able to perform.21 V.S.A. § 495o(a)(9); and (B) limited to only the times and activities necessary to accomplish the essential job functionsEssential job function"Essential job function" means a fundamental duty of a job or position that an employee with that job or position must be able to perform.21 V.S.A. § 495o(a)(9). (2) Any location tracking function of an application or device shall be disabled outside of the times when the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) is engaged in activities necessary to accomplish essential job functionsEssential job function"Essential job function" means a fundamental duty of a job or position that an employee with that job or position must be able to perform.21 V.S.A. § 495o(a)(9). (3) An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall not require an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) to physically implant a device on the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s body for purposes of employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) monitoring.
Subsection (e) restricts employers from requiring employees to install monitoring applications on personal devices or to wear or implant monitoring devices, unless the monitoring is necessary for essential job functions and limited to the times and activities needed for those functions. Location tracking must be disabled outside work-related activities. A categorical ban on requiring physical implantation of monitoring devices in employees' bodies applies without exception.
(f)(1)(A)–(E) 6 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall not use an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) in a manner that: (A) violates or results in a violation of State or federal law; (B) makes predictions about an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s behavior that are unrelated to the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s essential job functionsEssential job function"Essential job function" means a fundamental duty of a job or position that an employee with that job or position must be able to perform.21 V.S.A. § 495o(a)(9); (C) identifies, profiles, or predicts the likelihood that an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) will exercise the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s legal rights; (D) makes predictions about an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s emotions, personality, or other sentiments; or (E) uses customer or client dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4), including customer or client reviews and feedback, as an input of the automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2).
(f)(2)(A)–(B) 7 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall not solely rely on outputs from an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) when making employment-related decisions. (B) An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) may utilize an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) in making employment-related decisions if: (i) the automated decision system outputsAutomated decision system output"Automated decision system output" means information, data, assumptions, predictions, scoring, recommendations, decisions, or conclusions generated by an automated decision system.21 V.S.A. § 495o(a)(3) considered in making the employment-related decision are corroborated by human oversight of the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6), including supervisory or managerial observations and documentation of the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s work, personnel records, and consultations with the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s coworkers; (ii) the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) has conducted an impact assessment of the automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) pursuant to subsection (g) of this section; and (iii) the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) is in compliance with the notice requirements of subsection (h) of this section.
(f)(3) 8 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall not use any automated decision system outputsAutomated decision system output"Automated decision system output" means information, data, assumptions, predictions, scoring, recommendations, decisions, or conclusions generated by an automated decision system.21 V.S.A. § 495o(a)(3) regarding an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s physical or mental health in relation to an employment-related decision.
Subsection (f) imposes substantive restrictions on how employers may use automated decision systems. Employers may not use an ADS in ways that violate state or federal law, make behavioral predictions unrelated to essential job functions, profile employees' likelihood of exercising legal rights, predict employees' emotions or personality, or use customer or client data (including reviews and feedback) as inputs. Employers are prohibited from relying solely on ADS outputs for employment decisions — they may use ADS outputs only when corroborated by human oversight (supervisory observations, personnel records, coworker consultations), a pre-deployment impact assessment has been completed, and statutory notice requirements are satisfied. A separate prohibition bars use of ADS outputs regarding physical or mental health in employment decisions.
(g)(1)(A)–(G) 9 Prior to utilizing an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2), an employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall create a written impact assessment of the system that includes, at a minimum: (A) a detailed description of the automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) and its purpose; (B) a description of the dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) utilized by the system; (C) a description of the outputs produced by the system and the types of employment-related decisions in which those outputs may be utilized; (D) an assessment of the necessity for the system, including reasons for utilizing the system to supplement nonautomated means of decision making; (E) a detailed assessment of the potential risks of utilizing the system, including the risk of: (i) errors; (ii) discrimination against employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) on the basis of race, color, religion, national origin, sex, sexual orientation, gender identity, ancestry, place of birth, age, crime victim status, or physical or mental condition; (iii) violating employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)' legal rights or chilling employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)' exercise of legal rights; (iv) directly or indirectly harming employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)' physical health, mental health, safety, sense of well-being, dignity, or autonomy; (v) harm to employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) privacy, including through potential security breaches or inadvertent disclosure of information; and (vi) negative economic and material impacts to employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6), including potential effects on compensation, benefits, work conditions, evaluations, advancement, and work opportunities; (F) a detailed summary of measures taken by the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) to address or mitigate the risks identified pursuant to subdivision (E) of this subdivision (g)(1); and (G) a description of any methodology used in preparing the assessment.
(g)(2) 10 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall provide a copy of the assessment prepared pursuant to subdivision (1) of this subsection (g) to an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) upon request.
(g)(3) 9 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall update the assessment required pursuant to this subsection any time a significant change or update is made to the automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2).
Subsection (g) requires employers to prepare a detailed written impact assessment before utilizing any automated decision system. The assessment must cover the system's description and purpose, the data it uses, its outputs and the types of employment decisions in which outputs may be used, a necessity justification, a detailed risk assessment covering errors, discrimination across protected characteristics, chilling effects on legal rights, employee health and dignity impacts, privacy risks, and negative economic effects, a summary of mitigation measures, and the assessment methodology. Employers must provide a copy of the assessment to employees upon request and must update it whenever significant changes are made to the ADS.
(h) 11 Electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) and automated decision systemsAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) shall not incorporate any form of facial, gait, or emotion recognition technology.
Subsection (h) imposes a categorical prohibition on incorporating facial, gait, or emotion recognition technology into any electronic monitoring or automated decision system used in the employment context. This prohibition applies without exception — there is no carve-out for legitimate purposes or essential job functions.
(i)(1) 12 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7); any person that develops, operates, or maintains electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) or an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) on behalf of an employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7); and any person who collects, stores, analyzes, interprets, disseminates, or otherwise uses dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) produced or utilized by electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) or an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) shall implement reasonable security procedures and practices appropriate to the nature of the dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) to protect employeesEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)' personal information from unauthorized or illegal access, destruction, use, modification, or disclosure.
(i)(2)(A)–(B) 13 Any person that develops, operates, or maintains electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) or an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) on behalf of an employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) and any person who collects, stores, analyzes, interprets, disseminates, or otherwise uses dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) produced or utilized by electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) or an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) shall, upon termination of the contract with the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7): (A) return all dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) and automated decision system outputsAutomated decision system output"Automated decision system output" means information, data, assumptions, predictions, scoring, recommendations, decisions, or conclusions generated by an automated decision system.21 V.S.A. § 495o(a)(3) to the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7); and (B) destroy all dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) and automated decision system outputsAutomated decision system output"Automated decision system output" means information, data, assumptions, predictions, scoring, recommendations, decisions, or conclusions generated by an automated decision system.21 V.S.A. § 495o(a)(3) in the person's possession.
Subsection (i) imposes data security and data disposition obligations on three categories of parties: employers, persons who develop/operate/maintain monitoring or ADS on behalf of employers, and persons who collect, store, analyze, or use monitoring/ADS data. All must implement reasonable security procedures appropriate to the nature of the data. Third-party contractors and data processors must, upon contract termination, return all data and ADS outputs to the employer and destroy all copies in their possession.
(j) 14 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall, upon request, provide an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) with any dataData"Data" means information obtained by any means that, directly or indirectly, identifies, relates to, describes, may reasonably be associated with, or could reasonably be linked to an employee, including: (A) personal identifying information; (B) biometric information; (C) health, medical, lifestyle, and wellness information; (D) information related to workplace activities; (E) human resources information and personnel files; and (F) information related to the employee's Internet and digital activities, including electronic communications, private social media activity, and personal Internet Protocol address.21 V.S.A. § 495o(a)(4) that relates to the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) that was produced or utilized by electronic monitoringElectronic monitoring"Electronic monitoring" means the collection of information concerning employee activities or communication by any means other than direct, in-person observation, including through the use of a digital device, computer, telephone, wire, radio, camera, or electromagnetic, photoelectronic, or photo-optical system.21 V.S.A. § 495o(a)(5) or an automated decision systemAutomated decision system"Automated decision system" means an algorithm or computational process that is used to make or assist in making employment-related decisions, judgments, or conclusions. The term "automated decision system" includes algorithms and computational processes that are derived from machine learning, statistics, data processing, or artificial intelligence.21 V.S.A. § 495o(a)(2) used by the employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7).
Subsection (j) grants employees the right to request and receive any data relating to them that was produced or utilized by electronic monitoring or an automated decision system used by the employer. This is a broad individual access right encompassing both monitoring data and ADS-generated data.
(k) 15 An employerEmployer"Employer" means a person who employs one or more individuals in Vermont, and includes any agent or contractor acting on the employer's behalf.21 V.S.A. § 495o(a)(7) shall not discharge or in any other manner retaliate against an employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6) who exercises or attempts to exercise the employeeEmployee"Employee" means an individual who, in consideration of direct or indirect gain or profit, is employed by an employer.21 V.S.A. § 495o(a)(6)'s rights under this section. The provisions against retaliation set forth in subdivision 495(a)(8) of this subchapter shall apply to this section.
Subsection (k) prohibits employers from discharging or retaliating against employees who exercise or attempt to exercise their rights under the section. The anti-retaliation protections of 21 V.S.A. § 495(a)(8) are incorporated by reference.
(l) The provisions of section 495b of this subchapter shall apply to this section.
Subsection (l) incorporates the enforcement provisions of 21 V.S.A. § 495b, the existing Vermont fair employment practices enforcement mechanism. This cross-reference provides for both public enforcement and a private right of action without establishing any new compliance obligation.
This act shall take effect on July 1, 2023.
Section 2 establishes the act's effective date as July 1, 2023.