A3911

An Act concerning the use of artificial intelligence in the hiring process and supplementing Title 34 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. An employer in the State that requests applicants to record video interviews and uses an artificial intelligence analysis of the applicant-submitted video shall, prior to making the request for a video interview:

(1) notify an applicant before the interview that artificial intelligence may be used to analyze the applicant’s video interview and consider the applicant’s fitness for the position;

(2) provide an applicant with information before the interview explaining how the artificial intelligence works and what general types of characteristics it uses to evaluate applicants; and

(3) obtain, before the interview, written consent, which may be electronic, from the applicant to be evaluated by the artificial intelligence program as described in the information provided.

An employer shall not use artificial intelligence to evaluate an applicant who has not consented to the use of artificial intelligence analysis.

b. An employer shall not share an applicant’s video except with a service provider whose expertise or technology is necessary to evaluate the applicant's fitness for a position.

c. Upon request from the applicant, an employer, within 30 days after receipt of the request, shall delete an applicant's interviews and instruct any other persons who received copies of the applicant’s video interviews to also delete the videos, including all electronically generated backup copies. Any other person or service provider shall comply with the employer's instructions.

d. An employer that uses an artificial intelligence analysis of a video interview to determine whether an applicant will be selected for an in-person interview shall collect and report the following demographic data:

(1) the race and ethnicity of applicants who are and are not afforded the opportunity for an in-person interview after the use of artificial intelligence analysis; and

(2) the race and ethnicity of applicants who are offered a position or hired.

e. The demographic data collected under subsection d. of this section shall be reported annually to the Department of Labor and Workforce Development.

f. The Department of Labor and Workforce Development shall analyze the data reported in accordance with subsection e. of this act and report to the Governor and the Legislature, as provided pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), each year whether the data discloses a racial bias in the use of artificial intelligence.

g. A person who violates any provision of this act shall be liable for a civil penalty of $500 for a first offense and $1,000 for any subsequent offense. The civil penalty shall be collected pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).

h. As used in this section, “employer” means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, or other entity that employs employees in the State.

2. This act shall take effect immediately.

STATEMENT

This bill provides that an employer that uses an artificial intelligence analysis of an applicant-submitted video is required to notify an applicant before the interview that artificial intelligence may be used to analyze the applicant's video interview and consider the applicant's fitness for the position. The bill also requires an employer to provide an applicant with information before the interview explaining how the artificial intelligence works and what characteristics it uses to evaluate applicants and obtain consent from the applicant to be evaluated by the artificial intelligence program. An employer may not use artificial intelligence to evaluate an applicant who has not consented to the use of artificial intelligence analysis.

Additionally, the bill provides that an employer may not share applicant videos except with persons or service providers whose expertise is necessary in evaluating an applicant. Upon request from the applicant, an employer is required to delete all copies of an applicant's interview within 30 days.

The bill requires an employer that uses an artificial intelligence analysis of a video interview to collect and report demographic data to the Department of Labor and Workforce Development (department). The department will report to the Governor and the Legislature whether the data discloses a racial bias in the use of artificial intelligence.

The bill provides for civil penalties to be collected for violations of its provisions.