WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
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) "Automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1)" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1)" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.
(a)(2) "State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2)" means any agency, department, or division of the State.
This subsection defines the two key terms for the bill: automated employment decision-making tool and State agency. The tool definition is broad — covering any software using algorithms, computational models, or AI techniques that materially automates or replaces human employment decisions — but carves out basic office software (calculators, spell-check, spreadsheets, email) and internal management tools that do not materially affect employee rights, liberties, benefits, safety, or welfare.
(b) 1 Any State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2) that utilizes automated employment decision-making toolsAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) shall publish and maintain a list of the tools on the State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2)'s website. The disclosure shall include: (1) a description of each automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) utilized by the State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2); (2) the date the State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2) began using each automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1); (3) a summary of the purpose and use of each automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1); and (4) any other information about the tools deemed relevant by the State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2).
This subsection imposes the bill's core transparency obligation: any State agency using automated employment decision-making tools must publish and maintain a list of those tools on the agency's website. The required disclosure is structured as an inventory with four enumerated elements — a description of each tool, the date the agency began using it, a summary of its purpose and use, and any other information the agency deems relevant. This is functionally a government AI inventory requirement limited to employment-context tools.
(c)(1) 2 The use of an automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) by a State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2) shall not affect the rights of State employees pursuant to an existing collective bargaining agreement or affect the existing bargaining relationship between the State and employees covered by a collective bargaining agreement.
(c)(2) 3 The use of an automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) shall not result in: (A) the discharge, displacement, or loss of position, including partial displacement such as a reduction in the hours of nonovertime work, wages, or employment benefits, of State employees; (B) the impairment of existing collective bargaining agreements; or (C) the transfer of existing duties and functions currently performed by employees of a State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2) to an automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1).
(c)(3) 4 The use of an automated employment decision-making toolAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) shall not alter the rights, benefits, or privileges, including terms and conditions of employment, classified service status, and collective bargaining unit membership status, of all existing employees of a State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2), and the collective bargaining unit membership status of all existing employees of a State agencyState agency"State agency" means any agency, department, or division of the State.3 V.S.A. § 269(a)(2) shall be preserved and protected.
This subsection protects State employees covered by collective bargaining agreements from adverse consequences of automated employment decision-making tool adoption. It operates on three levels: preserving existing collective bargaining rights and relationships, prohibiting specific adverse outcomes (discharge, displacement, hour or wage reductions, impairment of agreements, and transfer of duties to AI tools), and preserving all existing employee rights, benefits, privileges, classified service status, and bargaining unit membership status. These are substantive labor protections that go beyond disclosure — they impose operational constraints on how State agencies may deploy AI in the employment context.
(a) There is created the Study Committee on Automated Employment Decision-Making ToolsAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) and Public Employees to examine the impact of the disclosure of automated employment decision-making toolsAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) on State employees and the feasibility of extending the disclosure requirement and protections for unionized employees to municipal employees, teachers and other public school employees, and employees of public institutions of higher education.
(b) The Study Committee shall be composed of nine members as follows: (1) one current member of the House of Representatives, appointed by the Speaker of the House; (2) one current member of the Senate, appointed by the Committee on Committees; (3) one representative of the Department of Human Resources, appointed by the Commissioner of Human Resources; (4) one representative of the Agency of Administration, appointed by the Secretary of Administration; (5) one member who is a bargaining representative on behalf of State employees, appointed by the Vermont State Employees' Association; (6) one representative of a statewide teachers' union, appointed by the Vermont-National Education Association; (7) one representative of municipal employees, appointed by the Vermont League of Cities and Towns; (8) one representative of a public institution of higher education, appointed jointly by the President of the University of Vermont and the Chancellor of the Vermont State Colleges; and (9) one public member with expertise in labor law or automated or algorithmic decision making, appointed by the Governor.
(c) The Study Committee shall examine and make findings and recommendations regarding the following: (1) the effectiveness of the disclosure requirements for automated employment decision-making toolsAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) pursuant to 3 V.S.A. § 269; (2) the extent to which existing statutory and collectively bargained employee protections adequately protect unionized State employees from adverse employment actions resulting from the use of automated employment decision-making toolsAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1); (3) the interaction between automated employment decision-making toolsAutomated employment decision-making tool"Automated employment decision-making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate or replace human decision making regarding employment, including wages and other compensation, hiring, recruitment, discipline, and promotion. "Automated employment decision-making tool" does not include any software used primarily for basic computerized processes, such as calculators, spell-check tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal office management, such as ordering office supplies or processing payments, and that does not materially affect the rights, liberties, benefits, safety, or welfare of any individual State employee.3 V.S.A. § 269(a)(1) and the dispute resolution mechanisms in collective bargaining agreements covering State employees; (4) the feasibility, benefits, risks, and potential unintended consequences of extending the disclosure and labor protection requirements of 3 V.S.A. § 269 to: (A) municipal employees; (B) teachers and other public school employees; and (C) employees of public institutions of higher education; (5) the administrative, fiscal, and operational impacts of extending coverage under 3 V.S.A. §269 to additional categories of public employees; and (6) whether statutory amendments, phased implementation, or differentiated approaches are advisable for different categories of public employees.
(d) The Study Committee shall have the administrative, technical, and legal assistance of the Department of Human Resources. The Joint Fiscal Office shall provide fiscal analysis upon request.
(e) On or before December 15, 2028, the Study Committee shall submit a written report to the House Committees on Commerce and Economic Development and on Government Operations and Military Affairs and the Senate Committees on Government Operations and on Education with its findings and any recommendations for legislative action.
(f) The committee member representing the Department of Human Resources shall call the first meeting of the Study Committee to occur on or before September 1, 2027. (2) The members of the Study Committee shall select a chair from among its legislative members at the first meeting. (3) A majority of the membership shall constitute a quorum. (4) The Study Committee shall cease to exist upon submission of its report or on January 15, 2029, whichever occurs first.
(g) For attendance at meetings during adjournment of the General Assembly, a legislative member of the Study Committee shall be entitled to per diem compensation and reimbursement of expenses pursuant to 2 V.S.A. § 23 for not more than six meetings. These payments shall be made from monies appropriated to the General Assembly. (2) Except for those members otherwise regularly employed by the State, other members of the Study Committee shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A. § 1010 for not more than six meetings. These payments shall be made from monies appropriated to the Department of Human Resources.
Section 2 creates a nine-member Study Committee to examine the effectiveness of the disclosure requirements in § 269 and the feasibility of extending them — along with the labor protections — to municipal employees, public school employees, and employees of public institutions of higher education. The committee must report findings and recommendations by December 15, 2028 and sunsets on January 15, 2029. This section creates no private-sector compliance obligation; it is a legislative study mechanism.
This act shall take effect on July 1, 2026.
The act takes effect on July 1, 2026. This is a standard Vermont effective-date provision.