HF4537

Purpose

• To limit how artificial intelligence (AI) can be used in employment decisions and to ensure transparency when AI is used. The bill aims to prevent discrimination in hiring, promotion, tenure, and other employment terms by restricting AI use and requiring notice when AI is being used.

Key definitions

• Artificial intelligence: a machine-based system that for explicit or implicit objectives infers from the input it receives how to generate outputs such as predictions, content recommendations and decisions that can influence physical or virtual environments. This definition explains what counts as AI for purposes of the law.

Prohibited actions and scope

• It would be an unfair employment practice for an employer to use AI in a way that subjects an employee or job applicant to discrimination in areas such as recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.
• The bill also prohibits employers from failing to provide notice to an employee or applicant that AI is being used for the purposes described in the sections above.

Protected characteristics

• The protections cover discrimination based on:
  • Race, color, creed, religion, national origin
  • Sex and gender identity
  • Marital status
  • Status with regard to public assistance
  • Familial status
  • Membership or activity in a local commission
  • Disability
  • Sexual orientation
  • Age

Notices and transparency

• Employers must inform employees or job applicants that AI is being used for the employment-related purposes described. Failure to provide this notice would itself be treated as an unfair employment practice.

Statutory context

• The provision adds a subdivision to Minnesota Statutes 2024 section 363A.08, establishing the use of AI and related notice requirements as part of state employment protections.

Potential impacts

• Individuals could have greater protection against biased or discriminatory AI-driven decisions in hiring and employment.
• Employers would need to assess how their AI tools affect decision-making and ensure they provide clear notices when AI is used.

Relevant Terms - artificial intelligence - AI - machine-based system - predictions - content recommendations - decisions - discrimination - unfair employment practice - employment - recruitment - hiring - promotion - renewal of employment - training - apprenticeship - discharge - discipline - tenure - terms and conditions of employment - notice - Minnesota Statutes 363A.08 - subdivision 9 - protected classes - race - color - creed - religion - national origin - sex - gender identity - marital status - public assistance - familial status - membership or activity in a local commission - disability - sexual orientation - age