Use of an automated decision system by an employer

(a) Work-Related decisions (1) In general An employer— (A) may not rely predominantly on an automated decision system in making a work-related decision with respect to a covered individual; and (B) may not use an automated decision system in a manner that would— (i) prevent compliance with, or result in a violation of, any Federal, State, or local labor, occupational safety and health, employment, or civil rights law, including regulation; (ii) prevent compliance with any right of a covered individual to reasonable accommodations or nondiscrimination as required by Federal, State, or local law; or (iii) prevent or discourage a covered individual from exercising any right under the National Labor Relations Act (29 U.S.C. 151 et seq.) or any similar rights under any other Federal, State, or local law. (2) Disclosures (A) In general An employer that uses or intends to use an automated decision system in making a work-related decision with respect to a covered individual shall, in accordance with subparagraph (B), disclose to such covered individual— (i) that the employer uses or intends to use an automated decision system in making such a work-related decision; (ii) a description and explanation of the automated decision system, including— (I) the types of data collected or intended to be collected as inputs to the automated decision system and the circumstances of such collection; (II) the characteristics that the automated decision system measures or is intended to measure, such as the knowledge, skills, or abilities of the covered individual; (III) how such characteristics relate or would relate to any function required for the work or potential work of the covered individual; (IV) how the system measures or is intended to measure such characteristics; (V) any performance standards or metrics used as inputs or produced as outputs of the automated decision system; and (VI) how the covered individual can interpret the output of such automated decision system in plain language; (iii) the identity of the individual or entity that operates the automated decision system; (iv) how the employer uses or intends to use such an automated decision system in making such a work-related decision; (v) how the covered individual may dispute or appeal a work-related decision made with respect to the covered individual using an automated decision system; and (vi) the trade name of the automated decision system. (B) Timing of disclosures (i) Disclosures with regard to hiring and processing applications (I) In general An employer shall provide a disclosure required under subparagraph (A) to the covered individual— (aa) in the case of a covered individual for whom a work-related decision with regard to the hiring of the covered individual— (AA) was made on or after the date that is 5 years prior to the date of enactment of this Act, but before such date of enactment, not later than 30 days after such date of enactment; or (BB) except as provided in item (bb), is made on or after the date of enactment of this Act, prior to making such work-related decision; and (bb) in the case of an applicant who applies to the employer on or after the date of enactment of this Act, prior to processing an application by the applicant to be employed by, or otherwise perform work for remuneration for, the employer. (II) Employers needing information for prior work-related decisions With respect to a disclosure described in subclause (I)(aa)(AA), in the case of an employer that did not maintain, prior to the date of enactment of this Act, all of the information described in subparagraph (A) required for such a disclosure, the employer shall— (aa) provide the disclosure in accordance with this paragraph with respect to as much information described in subparagraph (A) as the employer did maintain; and (bb) inform the covered individual in accordance with such subclause that the employer did not maintain records of the other information required under such subparagraph. (ii) Other disclosures (I) In general With respect to any work-related decision not described in clause (i) that is made on or after the date of enactment of this Act, an employer shall provide the disclosure required under subparagraph (A) prior to making such work-related decision. (II) Adverse work actions Notwithstanding subclause (I), in the case the work-related decision described in such subclause is for an adverse work action against the covered individual, the disclosure described in such subclause shall be required at least 7 days prior to taking the adverse work action. (iii) Updated disclosures With respect to a covered individual for whom an employer provided a disclosure under subparagraph (A), the employer shall provide the covered individual with an updated disclosure— (I) not less than 7 days before implementing changes to practices disclosed under clause (ii) or (iv) of subparagraph (A); or (II) immediately upon significant new information required to be provided in such a disclosure becoming available. (C) Exceptions (i) In general Notwithstanding any provision in this paragraph, no disclosure is required under this paragraph for any work-related decision made prior to the date of enactment of this Act, except for such a decision with regard to the hiring of a covered individual that is made not prior to the date that is 5 years before the date of enactment of this Act as described in subparagraph (B)(i)(I)(aa)(AA). (ii) Egregious misconduct Notwithstanding any provision in this paragraph, in the case a covered individual engages in egregious misconduct, an employer may issue a disclosure under this paragraph for a work-related decision made by the employer with respect to such egregious misconduct after the employer makes such work-related decision. (3) Training An employer that uses or intends to use an automated decision system in making a work-related decision with respect to a covered individual shall train any individual or entity that operates the automated decision system on the use of such system, including on— (A) the input information used by such automated decision system; (B) the appeals process for the output of such an automated decision system; (C) potential biases in automated decision systems; (D) any limitations of the automated decision system, including intended use cases, known performance issues outside of those use cases, and proper interpretation of outputs; (E) any potential adverse effects to covered individuals due to the automated decision system; (F) any potential errors or problems related to the automated decision system; and (G) examples of inappropriate uses of the automated decision system, such as misinterpretation of outputs or exclusive reliance on outputs to make a decision. (b) Management by an automated decision system An employer that manages a covered individual through an automated decision system shall enable the covered individual to opt out of such management and instead be managed through a human manager who is able to make work-related decisions with respect to the covered individual. (c) Applicant opt out An employer shall enable applicants to opt out of having application materials screened, reviewed, or processed by an automated decision system and instead be screened, reviewed, or processed by a human, including in cases in which the employer engages a third party to screen, review, or process application materials.