Newly Proposed Bills Would Regulate AI Tools in Employment in NJ

Employers are relying heavily on AI tools for their recruitment and hiring processes. However, there are concerns that these tools can be biased just like humans. After all, human beings program AI tools. To address the adverse impact that AI tools may be causing in violation of anti-discrimination laws, New Jersey recently proposed two laws, A3854 and A3911, that would amend the state’s employment law to regulate the use of AI tools in the recruitment and hiring process. These bills aim to prevent discrimination and protect job applicants’ privacy.

Bill A3854

If Bill A3854 is signed into law, it will regulate manufacturers and sellers of automated employment decision tools (AEDTs) and companies that use these tools in the recruitment and hiring process. AEDTs help employers screen and choose job candidates. However, there is a risk that these tools could result in biased decisions. This bill aims to minimize employment discrimination that may occur from the use of AEDTs. 

Under bill A3854, for a company to sell AEDTs, it must conduct an annual “bias audit.” Purchasers must be notified the tools are subject to the bias audit requirement, and the audit results must be provided to the client yearly, for free. Additionally, a notice should be provided confirming the tool complies with the bill’s provisions. 

Bill A3854 also requires employers who use these tools to publish summaries of the audit results. Additionally, job applicants must be informed within 30 days if they are screened using an AEDT. Job applicants have the right to know the assessment criteria used and be provided with information about the data collected and how long it will be kept upon request.

Bill A3911

If Bill A3911 is passed, it would apply to employers who use AI tools to analyze job application videos submitted by applicants. This bill would require that before employers request a video interview, they inform job applicants if AI will be used to analyze the videos. Employers will be required to provide details on how the technology works and obtain written consent from applicants. Employers would be prohibited from evaluating videos of applicants who don’t consent to AI analysis.

Under bill A3911, employers would be barred from sharing applicants’ videos except with essential service providers. Bill A3911 would require an employer to delete an applicant’s video within 30 days if the individual requests that the video be deleted and inform any recipients to do the same.

Furthermore, the bill would require employers to collect and report demographic data about the applicants considered for in-person interviews or hire.

Penalties for Violating the Two Laws

Any employer who violates bill A3854 would face a civil penalty of up to $500 for the initial violation and up to $1,500 for every subsequent violation on the same day. A violation of bill A3911 would attract a civil penalty of $500 for an initial offense and $1,000 for each subsequent offense.

Contact a New Jersey Employment Lawyer

If you have questions or need help with an employment-law-related matter, contact a qualified New Jersey employment lawyer at the Trabosh Law Firm.

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