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IA SF2414

IA SF2414
A bill for an act relating to automated decision systems used by employers.


summary

Introduced
02/19/2026
In Committee
02/19/2026
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to automated decision systems used by employers. The bill requires an employer to provide a written notice that an automated decision system, as defined in the bill, is in use for the purpose of making employment-related decisions, other than hiring decisions, at the workplace to an employee who will foreseeably be directly affected by the automated decision system. The bill specifies the time period, content, and format of such notices. If an employer will use an automated decision system in making hiring decisions for a position, the bill requires the employer to notify an applicant for the position, upon receiving the application, that the employer utilizes an automated decision system when making hiring decisions. The bill specifies various prohibited uses of automated decision systems by employers relating to employee rights. When an employer relies primarily on output from an automated decision system to make a discipline, termination, or deactivation decision, the bill requires the employer to use a human reviewer to review the automated decision system output and compile and review other specified information that is relevant to the decision, if any. The bill prohibits an employer from using customer ratings as the only or primary input data for an automated decision system to make employment-related decisions. The bill requires an employer that primarily relied on an automated decision system to make a discipline, termination, or deactivation decision to provide the affected employee with a written notice at the time the employer informs the employee of the decision. The bill specifies the content and format of the notice. The bill provides that an employee shall have the right to request a copy of the most recent 12 months of the employee’s own data primarily used by an automated decision system to make a discipline, termination, or deactivation decision. An employer shall provide a copy upon request. An employee is limited to one such request every 12 months. For purposes of safeguarding the privacy rights of consumers, employees, and individuals, when an employer is required to provide employee data pursuant to the bill, the employer is required to provide the data in a manner that anonymizes the personal information of any customer, employee, or other individual. The bill prohibits an employer from discharging, threatening to discharge, demoting, suspending, or in any manner discriminating or retaliating against any employee for using or attempting to exercise the employee’s rights under the bill, filing a complaint alleging a violation of the bill, cooperating in an investigation or prosecution of an alleged violation, or taking any action to invoke or assist in any manner the enforcement of the bill. The bill is enforced by the department of inspections, appeals, and licensing (department). Such enforcement may include but is not limited to investigating alleged violations, ordering appropriate temporary relief to mitigate a violation, issuing a citation against an employer who violates the bill, conducting contested case hearings if requested, and bringing a civil action for enforcement. An employer who violates the bill shall be subject to a civil penalty of $500, collectible by the department. A person subject to a violation of the bill may bring an action in district court for appropriate temporary or preliminary injunctive relief, including punitive damages, and reasonable attorney fees and court costs. The department may bring such an action on the person’s behalf with the person’s consent. The bill shall not be construed to prohibit any employer from complying with regulatory or contractual requirements in the provision of products or services to the federal government.

AI Summary

This bill establishes new regulations for employers using automated decision systems, which are defined as computational processes using machine learning, artificial intelligence, or data analytics that generate outputs to assist or replace human decision-making and materially impact individuals. Employers must provide written notice to employees and applicants about the use of these systems for employment-related decisions, excluding hiring, at least 30 days before deployment or by January 1, 2027, for existing systems, and to new employees within 30 days of hiring. This notice must detail the types of decisions affected, the data used, key parameters, the system's creators, any quotas involved, and employee rights to access and correct their data. For hiring decisions, applicants must be notified upon application submission. The bill prohibits employers from using automated systems to violate labor laws, infer protected status, retaliate against employees for exercising their rights, collect undisclosed data, or solely rely on the system for discipline, termination, or deactivation decisions; in such cases, a human reviewer must assess the system's output along with other relevant information. Customer ratings cannot be the sole or primary input for employment decisions. If an automated system is primarily used for discipline, termination, or deactivation, the employer must provide a written notice to the affected employee at the time of the decision, including contact information and details about the system's use and employee rights. Employees can request a copy of their data used by these systems once every 12 months, with personal information anonymized. The bill also prohibits employer retaliation against employees for exercising their rights under this chapter. The department of inspections, appeals, and licensing (department) will enforce these provisions, with violations subject to a $500 civil penalty, and individuals can pursue legal action for injunctive relief, damages, and attorney fees. The bill does not prevent employers from complying with federal requirements.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Introduced, referred to Workforce. S.J. 330. (on 02/19/2026)

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