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Relating to the use of an automated employment decision tool by an employer to assess a job applicant's fitness for a position; imposing an administrative penalty.
In one paragraph
Texas SB 2991 (2025), as introduced, would have added Labor Code Chapter 95 barring employers from using an automated employment decision tool on an applicant unless they notify the applicant, explain how it is used and what characteristics may be evaluated, and get written consent. Tools could not use protected-class status or the applicant's zip code. Employers would have had to make reasonable efforts to destroy assessments within 30 days, and the commission would assess administrative penalties of $2,500 to $7,500 per violation. No enrolled version exists, so it died June 2, 2025.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
No duties for businesses because the bill died. Had it passed, employers using AI hiring tools in Texas would have faced notice, consent, data-destruction duties and $2,500 to $7,500 penalties.
Key provisions
- Sec. 95.002: an employer may not use a tool, or authorize a third party to, in violation of the chapter; factors may not include protected-class status 'or the residential zip code of the applicant'
- Sec. 95.003: before use the employer must notify the applicant, explain how the tool will be used and what characteristics may be evaluated, and obtain 'the applicant's written consent'
- Sec. 95.004: the employer may not share an assessment except with a person whose knowledge and skill is necessary to ensure the tool correctly processes the data
- Sec. 95.005: within 30 days after use, make 'all reasonable efforts to destroy' hard copies and erase electronic files of the assessment and instruct recipients to do the same
- Sec. 95.006: applicants may file a complaint with the commission, which 'shall assess an administrative penalty' of not less than $2,500 and not more than $7,500 per violation
- Sec. 95.007: the commission 'shall adopt rules for the administration of this chapter'
- Section 2: would have taken effect September 1, 2025; no enrolled version exists
Latest legislative action
Apr 7, 2025. Referred to Business & Commerce
Sponsors
| Name | Role |
|---|---|
| Johnson | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error