Purpose

Establish rules for how automated decision systems (ADS) are used in Minnesota workplaces. The goal is to protect workers by requiring transparency, consent, data protections, human review, and a clear process to challenge or appeal decisions made with ADS.

Key terms and definitions

• Automated decision system (ADS): a machine-learning/AI-based process that outputs scores, classifications, or recommendations used to aid or replace human decisions and that can affect a person’s employment. Excludes some basic tools (spam filters, firewalls, calculators, etc.).
• Artificial intelligence: a machine-based system that can act with varying levels of autonomy to influence environments.
• Worker data: any information that identifies or could be linked to a worker, including identity data, biometric data, health information, and data about workplace activities.
• Employer: the employer itself, plus state/local government units, labor contractors, and vendors; excludes the federal government.
• Authorized representative: a person or organization chosen by the worker to act on their behalf (not the employer).
• Employment-related decision: any decision about wages, hours, benefits, hiring, promotion, discipline, tasks, training, etc.
• Vendor: a third-party that provides software or services used to collect or analyze worker data.
• Electronic monitoring tool: any tech that collects data about worker activities beyond direct human observation (video/audio, geolocation, keystrokes, etc.).

Main provisions and what the bill seeks to accomplish

• Preuse notice (before ADS is used)
  • Employers must give written notice to the worker, their authorized representative, and the workers’ union about any ADS used to affect employment decisions.
  • Timing:
  • New ADS: at least 30 days before use.
  • Existing ADS (as of the law’s effective date): no later than Sept 1, 2026.
  • Notice must be prominent and before collecting personal data for the ADS; also required before significant changes to how the ADS is used.
  • Notice contents (clear, plain language): purpose and scope of the ADS; the employment decisions it may affect; data categories and sources; the ADS logic and outputs; who created/operated the ADS; job qualifications it assesses; any impact assessments; a current list of ADS in use; workers’ rights under the law.
  • Copies must be sent to the state department and available to authorized representatives.
• Records and data management
  • Employers must keep worker data and ADS inputs/outputs for 36 months after the last collection/use; then destroy unless the worker consented to retention.
  • Employers must protect data with appropriate security.
  • Workers can request copies of their data, ADS inputs/outputs, and corroborating evidence; responses must be provided within seven days.
  • Workers can request corrections to data; employers must investigate and correct inaccurate data; inform the worker and any third parties who received the data.
• Prohibitions and safeguards on ADS use
  • Prohibited uses include: helping ensure illegal or discriminatory outcomes; inferring immigration, veteran status, religion, political beliefs, health, sexual orientation, disability, criminal history, etc.; predicting non-job-related traits or behaviors; retaliating against exercising rights; using facial, gait, or emotion recognition; collecting data for purposes not disclosed in the notice.
  • ADS cannot be the sole basis for compensation decisions unless certain conditions are met (data directly related to ability to perform the job; the inputs are clearly communicated to the worker; and the ADS is used only limited times or with meaningful changes in duties).
  • Workers can refuse to follow ADS outputs without retaliation; continuous time-tracking data cannot be used to take adverse action except for clear cases of egregious misconduct.
  • If an ADS is used in part, an internal designated reviewer must verify its accuracy and gather corroborating information; the reviewer must be empowered and trained, and protected from retaliation.
  • If the employer cannot corroborate the ADS output, it must not rely on it for the decision.
• Postuse notice and access rights
  • After a decision, the worker must receive a written notice (within 15 business days or 30 days before discipline/termination, whichever comes first).
  • Notices must be plain language, stand-alone, and available in the worker’s language; include rights and how to appeal; provide a form or link to access data and the ADS details.
  • If the same ADS is used multiple times in a quarter, the employer must provide the initial notice and a quarterly summary with counts, dates, and rights.
  • Workers have a right to access: the specific decision, the specific data used, the outputs produced, how the output affected the decision, any corroborating evidence, the logic and limitations of the ADS, and information about the ADS’s creator and product name; a copy of any completed impact assessments.
  • Employers must respond to access requests promptly (e.g., within 14 days); service providers may assist.
• Right to appeal
  • Workers can submit an appeal using a form or electronic link, with options to access input data and corroborating evidence, and space to explain the appeal.
  • Appeals must be filed within 30 days of the notice.
  • Employers must respond within five business days and appoint a human reviewer who can overturn the decision, who was not involved in the original decision, and who has authority, time, and training to evaluate ADS outputs.
  • The reviewer must produce a written decision with reasons; if overturned, the employer must remedy the decision within five business days.
• Enforcement and penalties
  • No retaliation against workers for using or attempting to use their rights.
  • The state labor department enforces the law, can investigate violations, issue citations, and seek civil actions.
  • Civil penalties: $1,000 per violation for certain sections (ADS use and notification-related provisions); $2,500 per violation for other sections (record corrections, access, etc.); each ADS use is a separate violation.
  • Joint and several liability for employers and their labor contractors or vendors.
  • Local ordinances can provide greater protections; the law is severable; a model notice will be published to help employers comply.

Significant changes to existing law

• Introduces a comprehensive framework for ADS in employment, including:
  • Mandatory preuse notices and ongoing postuse notices.
  • Strong data-collection, retention, and destruction rules for worker data.
  • Explicit prohibitions on using ADS to discriminate or infringe on workers’ legal rights.
  • Requirement for an internal reviewer and corroboration when ADS outputs are used in decisions.
  • A formal right to access data and an appeals process with a designated reviewer.
  • New enforcement mechanisms with civil penalties and joint liability for employers and their contractors/vendors.

Quick nutshell

• The bill creates a new, enforceable regime for using automated decision systems in hiring, promotions, discipline, and other employment actions. It emphasizes transparency (clear notices), worker rights (data access and appeal), and safeguards (prohibitions on sensitive data use, independent review, and penalties for violations).

Relevant Terms - automated decision system (ADS) - worker data - employer - vendor - authorized representative - employment-related decision - preuse notice - postuse notice - electronic monitoring tool - internal reviewer - corroborating evidence - impact assessment - right to access - right to appeal - civil penalties - joint and several liability - model notice - essential job functions - individualized data - data security - lawful/illegal discriminations and protections