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New York State’s S07623 –A New Wrinkle in AI Regulation
What’s New — A focus on Electronic Monitoring Tools
S07623 does two big things — first, it regulates the use of electronic monitoring tools (“EMTs”) by employers. It:
- Defines a narrow set of allowable purposes for EMTs
- Requires that the EMT be “strictly necessary” and the “least invasive means” of accomplishing that goal
- Requires that the EMT collect as little data as possible on as few employees as possible to accomplish the goal.
If passed, this will be a very strict set of requirements that will require a ton of compliance and certification work for employers. Since the bill will require employers to “prove a negative” — that the EMT they have chosen is the least invasive means — there will be substantial room for interpretation. (Right of private action is not mentioned in the bill).
What’s Old — Another State Level AI Audit Requirement
One interesting twist is that this law will require “meaningful human oversight” of the decisions of automated tools. Employers will want to carefully document that their process includes a “human in the loop” on all employment decisions. (I am not familiar with any employer who really truly makes final hiring, promotion, or termination decisions without human intervention).
These provisions both echo legislation introduced at the federal level — the well-branded “No Robot Bosses” and clunkier “Exploitative Workplace Surveillance and Technologies Task Force Act.”
As always, we will continue to monitor emerging AI regulation as it nears a point requiring action on the part of HR leaders and execs.
Proceptual provides compliance solutions for the emerging regulation of AI and automated hiring systems in HR.
