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AI Summary
This bill establishes standards for independent bias auditing of automated employment decision tools used in hiring processes.
Business Impact
If you use AI in hiring in New Jersey, you must conduct a bias audit annually or face restrictions on using your automated tools.
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
New Jersey's Senate Bill S2964 mandates independent bias audits for automated employment decision tools (AEDTs) to ensure compliance with discrimination laws. This legislation aims to enhance transparency and accountability in automated hiring practices.
Key Provisions
- Employers must conduct bias audits of AEDTs at least annually.
- Audits must include calculations for selection rates and impact ratios by demographic categories.
- Employers cannot use an AEDT if more than one year has passed since the last audit.
- Test data may be used for audits if historical data is insufficient.
Latest Legislative Action
Introduced in the Senate, Referred to Senate Labor Committee
Bill Sponsors
| Name | Role | District |
|---|---|---|
| Andrew Zwicker D | Sponsor | SD-016 |
Compliance Checklist
Conduct an independent bias audit of your AEDT
Who: Employers and employment agencies using AEDTs
Deadline: Annually
Penalty: Cannot use AEDT if audit is not conducted
Who: Employers and employment agencies using AEDTs
Deadline: Annually
Penalty: Cannot use AEDT if audit is not conducted
Post audit results on your website
Who: Employers and employment agencies
Deadline: Within 30 days of audit completion
Penalty: Non-compliance may lead to restrictions on AEDT use
Who: Employers and employment agencies
Deadline: Within 30 days of audit completion
Penalty: Non-compliance may lead to restrictions on AEDT use
Notify candidates about AEDT usage
Who: Employers and employment agencies
Deadline: At least 10 business days before using an AEDT
Penalty: Potential legal challenges or complaints
Who: Employers and employment agencies
Deadline: At least 10 business days before using an AEDT
Penalty: Potential legal challenges or complaints
Related & Companion Bills
Full Legal Analysis
Senate Bill S2964 requires employers and employment agencies in New Jersey to conduct independent bias audits of any automated employment decision tools (AEDTs) they use. These audits must be performed at least annually, and employers cannot use an AEDT if more than one year has passed since the last audit. The bill outlines specific calculations that must be included in the audits, such as selection rates and impact ratios across various demographic categories, ensuring that the tools do not discriminate based on sex, race, or ethnicity. The bill defines key terms such as 'automated employment decision tool' and 'bias audit,' establishing a framework for compliance. It emphasizes the importance of using historical data for audits but allows for the use of test data if historical data is insufficient.
Official Source
Official Bill Text
View S2964 on official legislature website →
Related Topics
Affected Industries
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