Purpose

This bill would create a comprehensive framework in Minnesota law to regulate how employers use electronic monitoring tools to collect data on workers. It aims to protect workers’ privacy and rights by requiring advance notice, clear data rules, access rights, limited uses, and strong enforcement.

Key Definitions (useful terms the bill uses)

• Artificial intelligence (AI): machine-based systems that can act with varying autonomy to influence environments.
• Automated decision system: a computer process using data or AI that produces a simplified output (like a score or recommendation) that can influence employment decisions.
• Electronic monitoring tool: any system that collects data about worker activities, communications, biometrics, or behaviors beyond direct human observation (e.g., video, geolocation, time tracking, etc.).
• Worker data: any information that can identify or be linked to a worker, including personal, biometric, health, work performance, communications, and even data from monitoring tools.
• Employer: any entity that hires or controls workers, including government units and contractors.
• Authorized representative: a person or group that represents a worker (not the employer).
• Vendor: a third party that provides monitoring software or related services.
• Employment-related decision: any decision affecting wages, hours, benefits, hiring, promotion, discipline, or other terms of employment.

Preuse Notice Requirements

• Employers must give written notice that an electronic monitoring tool is in use to:
  • the affected worker or authorized representative, and the worker’s union if applicable.
• Timing:
  • New tools or changes: at least 30 days before introduction or change.
  • Existing tools as of the effective date: notice by Sept 1, 2026.
  • Job applicants or new workers: before collecting personal data for the tool.
• Consent and opt-out:
  • A worker must affirmatively consent in writing before data collection begins.
  • Reasonable alternatives must be offered so workers can opt out.
• Notice content (detailed list in the law):
  • What data will be collected, purpose, activities/locations/equipment used, frequency, storage details, vendors involved, who can access data, how data may feed automated decisions, and whether data affects productivity or employment decisions.
  • A current list of all monitoring tools and workers’ rights under this law.
• Compliance logistics:
  • Notices must be plain language, accessible in the worker’s language, and can be delivered in an easy-to-use format (e.g., email link).
  • Notices must be copied to the commissioner of labor and industry within 10 days and available to authorized representatives upon request.

Data Records, Access, and Corrections

• Data retention:
  • Employers must keep data collected by monitoring tools for 36 months after collection to fulfill data requests.
  • Data must be destroyed within 37 months unless the worker consents in writing to longer retention.
• Data protection:
  • Employers must protect data with reasonable security appropriate to the data’s sensitivity.
• Access and corrections:
  • Workers can request a copy of their data and corroborating evidence within 7 days.
  • Workers can request corrections if data is inaccurate; employers must investigate, correct if needed, adjust decisions if affected, notify third parties, and explain the correction.

Employer Use, Prohibitions, and Limits

• Allowed purposes:
  • Use data to support essential job functions, ensure quality, assess performance, comply with laws, protect health/safety/security, and administer wages/benefits.
• Narrowly tailored use:
  • If used, the tool must have a stated purpose, be limited to that purpose, be narrowly tailored to affect as few workers as necessary, and collect data as infrequently as feasible.
• Prohibitions:
  • Do not use to circumvent laws or target protected characteristics (e.g., immigration status, race, religion, political beliefs, health, gender identity, sexual orientation, disability, etc.).
  • Do not use to infer unrelated traits or predict private behavior.
  • Do not track off-duty or non-work activities in most cases.
  • Do not monitor private areas (bathrooms, break rooms, locker rooms) or a worker’s residence or personal property.
  • Do not require implants or installation of data-collecting apps on personal devices, or location tracking beyond work hours unless strictly necessary for essential functions.
  • No adverse action based on exercising legal rights.
• Employment decisions:
  • Do not rely solely on electronic monitoring data; use a designated internal reviewer to corroborate the data when it informs a decision.

Post-Use Notice and Right to Access

• When an electronic-monitoring-derived decision affects a worker, employers must provide a written notice:
  • At the time of the decision or within 15 business days.
  • If discipline or termination will occur, notice at least 30 days before it takes effect.
• Notice content:
  • Acknowledgement that worker data was used, description of rights, a form or link to appeal, details about the data and tool, and confirmation that retaliation is prohibited.
• Access response:
  • Employers must provide a machine-readable copy of the data and related decision evidence within 14 days of an access request, plus related information used in the decision.

Right to Appeal

• Workers can appeal a decision that used monitoring data.
• The appeal process:
  • An appeal form with options to access data and corroborating evidence, space for the worker’s reasons and any supporting evidence, and to designate an authorized representative.
  • Appeals must be filed within 30 days of notice.
  • Employers must respond within 5 business days by appointing a human reviewer who can overturn the decision if warranted.
  • The reviewer must be independent of the original decision and protected from retaliation.
  • The reviewer’s decision is documented and shared with both parties; if overturned, the employer must implement the change within five business days.

Data Sale, Security, and Third-Party Vendors

• Data sharing:
  • Employers may not transfer or license worker data to vendors or others unless the vendor’s contract limits sale, includes strong security, and the vendor is liable for breaches.
• Government data sharing:
  • Data may be shared with state or local governments only when legally required.
• Security and breach:
  • Employers and vendors must implement robust security measures and promptly notify workers of any breach.
• Data return and deletion:
  • Vendors must return data to the worker and employer and delete any remaining copies at contract end.

Enforcement, Penalties, and Local Law Interaction

• Retaliation prohibition:
  • Employers cannot fire, threaten, demote, suspend, or retaliate against workers for exercising rights under these sections.
• Enforcement:
  • The Minnesota commissioner of labor and industry enforces these provisions, including investigations, temporary relief, citations, and civil actions.
• Civil penalties:
  • $1,000 per violation for certain sections; $2,500 per violation for others; each affected worker and each day can count as a separate violation.
• Joint and several liability:
  • Employers and their labor contractors or vendors can be held liable together.
• Local ordinances:
  • This law does not preempt city or county protections that are equal or greater.
• Severability and model notices:
  • Provisions are severable; the state must publish model notice language for employers to use.

Model Notice

• The commissioner must publish a model notice language for the required notices to help employers comply.

Relevant observations - The bill creates a comprehensive regulatory regime around electronic monitoring in employment, emphasizing transparency, worker consent, limited and clearly defined purposes, data protections, and independent review of decisions that rely on monitoring data. - It covers the entire data lifecycle: collection (preuse), use (employment decisions), access (post-use), appeal (dispute resolution), and deletion or retention (records), plus enforcement and penalties.

Relevant Terms - electronic monitoring tool - automated decision system - worker data - AI (artificial intelligence) - vendor - authorized representative - employment-related decision - essential job functions - preuse notice - post-use notice - right to access - right to appeal - internal reviewer - data security - data breach - civil penalties - joint and several liability - preemption - model notice