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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.
AI Summary
This bill regulates the use of automated employment decision tools by employers, requiring disclosure, consent, and data destruction within 30 days.
Business Impact
If you use AI in hiring in Texas, you must notify applicants and obtain their consent by September 1, 2025, or face penalties up to $7,500 per violation.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
Topics How we classify →
What This Means
Texas Senate Bill 2991 introduces regulations for employers using automated employment decision tools in hiring. It mandates transparency, consent, and data destruction, aiming to ensure fairness in the hiring process. Employers must comply with these requirements by September 1, 2025, or face significant penalties.
Key Provisions
- Employers must notify applicants about the use of automated employment decision tools.
- Written consent from applicants is required before using these tools.
- Employers cannot use tools that assess applicants based on protected class status or zip code.
- Employers must destroy assessment data within 30 days after use.
- Sharing of assessment results is restricted to necessary personnel only.
- Administrative penalties for violations range from $2,500 to $7,500, with enforcement by the commission as prescribed by Subchapter F, Chapter 21.
Latest Legislative Action
Referred to Business & Commerce
Bill Sponsors
| Name | Role |
|---|---|
| Johnson | Primary |
Compliance Checklist
Notify applicants about the use of automated employment decision tools
Who: Employers
Deadline: By September 1, 2025
Penalty: Up to $7,500 per violation
Who: Employers
Deadline: By September 1, 2025
Penalty: Up to $7,500 per violation
Obtain written consent from applicants before using the tools
Who: Employers
Deadline: By September 1, 2025
Penalty: Up to $7,500 per violation
Who: Employers
Deadline: By September 1, 2025
Penalty: Up to $7,500 per violation
Destroy assessment data within 30 days after use
Who: Employers
Deadline: 30 days after assessment
Penalty: Up to $7,500 per violation
Who: Employers
Deadline: 30 days after assessment
Penalty: Up to $7,500 per violation
Full Legal Analysis
Senate Bill 2991 establishes a framework for the use of automated employment decision tools by employers in Texas. It prohibits the use of such tools in a manner that violates the outlined provisions, particularly concerning protected classes and residential zip codes. Employers are required to notify applicants about the use of these tools, provide details on their operation, and obtain written consent prior to their use. Employers must make reasonable efforts to destroy both hard copies and electronic data files of the assessment within 30 days after use. Non-compliance can result in administrative penalties ranging from $2,500 to $7,500 per violation, with enforcement handled by the commission as prescribed by Subchapter F, Chapter 21. Key definitions include 'automated employment decision tool' and 'artificial intelligence system,' emphasizing the bill's focus on algorithmic accountability in hiring practices. This legislation aligns with similar regulatory trends in other states, aiming to enhance fairness and transparency in employment decisions.
Official Source
Official Bill Text
View SB2991 on official legislature website →
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