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Automated Employment Tool Legislation Radar – 02/10/2023
Below, we listed some of the new and emerging regulations for automated employment tools. We also included a handy infographic at the end! Contact us for more info.
In effect 01/01/2023
Enforcement begins 07/05/2023 (previously 04/15/2023 – updated 04/06/2023)
The law requires that organizations using automated, algorithmic hiring tools:
- Conduct an AI bias audit within 1 year of using the tool
- Post results on employer’s website
- Provide notice prior to using an AEDT
CALIFORNIA CCPA/CPRA
In effect 01/01/2023
California AI Regulations are still being drafted
Pending final rules, a business using automated decision-making tools, may need to:
- Allow opt-out
- Provide reasoning behind decisions
- Perform impact assessments of tools using sensitive data
WASHINGTON, DC B24-0558
1. Lack of internal policies
Last hearing 09/20/2022
Advancement could happen Q1 2023
Requires organizations using algorithms in hiring:
- Audit algorithms for discriminatory patterns
- Report results and any corrective actions
- Disclose and explain when algorithms negatively impact consumers’ outcomes
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
Strategic Enforcement Plan (SEP)
Released first half of 2023
- Recommends audits and governance plans
- Priorities include automated systems
- Combats and prevents employment discrimination
COLORADO PRIVACY ACT
In effect 07/01/2023
Rules are still being drafted
The law would require that organizations handling sensitive consumer data:
- Conduct data protection assessments (including those used in employment process)
- Identify Universal Opt-Out Mechanisms
- Provide disclosures, gather consent, and more
