EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*hb1255*
HOUSE BILL 1255
K3 4lr2562
CF SB 957
By: Delegate Bartlett
Introduced and read first time: February 8, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Labor and Employment – Automated Employment Decision Tools – Prohibition 2
FOR the purpose of prohibiting, subject to a certain exception, an employer from using an 3
automated employment decision tool to make certain employment decisions; 4
requiring an employer, under certain circumstances, to notify an applicant for 5
employment of the employer’s use of an automated employment decision tool within 6
a certain time period; and generally relating to automated employment decision 7
tools. 8
BY adding to 9
Article – Labor and Employment 10
Section 3–718 11
Annotated Code of Maryland 12
(2016 Replacement Volume and 2023 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Labor and Employment 16
3–718. 17
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19
(2) “ALGORITHMIC DECISION SYSTEM” MEANS A COMPUTATIONA L 20
PROCESS THAT FACILIT ATES DECISION MAKING , INCLUDING DECISIONS DERIVED 21
FROM MACHINES , STATISTICS, FACIAL RECOGNITION , AND DECISIONS ON PAP ER. 22
(3) “AUTOMATED EMPLOYMENT DECISION TOOL ” MEANS AN 23 2 HOUSE BILL 1255
ALGORITHMIC DECISION SYSTEM THAT AUTOMATI CALLY FILTERS: 1
(I) APPLICANTS OR POTENTIAL APPLICANTS FOR 2
EMPLOYMENT ; OR 3
(II) FOR A TERM, CONDITION, OR PRIVILEGE OF EMPLOYM ENT 4
IN A WAY THAT ESTABL ISHES A PREFER RED APPLICANT FOR EMPLOYMENT . 5
(4) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF 6
LABOR. 7
(5) “HIGH–RISK” MEANS AN ACT THAT IS LIKELY TO: 8
(I) RESULT IN UNLAWFUL D ISCRIMINATION; OR 9
(II) HAVE AN UNLAWFUL DIS PARATE IMPACT ON AN INDIVIDUAL 10
OR A GROUP OF INDIVIDUALS ON THE BASIS OF AN A CTUAL OR PERCEIVED 11
CHARACTERISTIC . 12
(6) “IMPACT ASSESSMENT ” MEANS A DOCUMENTED R ISK–BASED 13
EVALUATION OF A SYST EM THAT EMPLOYS AN ALGORITHMIC DECIS ION SYSTEM. 14
(B) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , AN 15
EMPLOYER MAY NOT USE AN AUTOMATED EMPLOYM ENT DECISION TOOL TO: 16
(1) SCREEN APPLICANTS FO R EMPLOYMENT ; OR 17
(2) OTHERWISE HELP THE EMPLOYER DECIDE COMP ENSATION OR 18
OTHER TERMS , CONDITIONS, OR PRIVILEGES OF EMP LOYMENT IN THE STATE 19
REGARDING APPLICANTS FOR EMPLOYMENT . 20
(C) AN EMPLOYER MAY USE A N AUTOMATED EMPLOYME NT DECISION TOOL 21
IF: 22
(1) THE AUTOMATED EMPLOYMENT DECISION TOOL: 23
(I) WAS SUBJECT TO AN IMPACT ASSESSMENT DURING THE 24
YEAR THAT IMMEDIATEL Y PRECEDES THE DATE THE EMPLOYER FIRST BEGINS 25
USING THE AUTOMATED EMPLOYMENT DECISION TOOL; AND 26
(II) IS SUBJECT TO AN IMP ACT ASSESSMENT EACH YEAR IT IS 27
USED BY THE EMPLOYER ; AND 28
HOUSE BILL 1255 3
(2) THE IMPACT ASSESSMEN TS REQUIRED UNDER ITEM (1) OF THIS 1
SUBSECTION DETERMINE THAT USE OF THE AUTOMATED EMPLOYMENT DECISION 2
TOOL WOULD NOT INVOLVE A HIGH–RISK ACTION. 3
(D) IF AN EMPLOYER USES AN A UTOMATED EMPLOYMENT DECISION TOOL 4
UNDER SUBSECTION (C) OF THIS SECTION, WITHIN 30 DAYS AFTER THE USE O F THE 5
AUTOMATED EMPLOYMENT DECISION TOOL , THE EMPLOYER SHALL NOTIFY EACH 6
APPLICANT FOR EMPLOY MENT WITH RESPECT TO WHOM THE AUTOMATED 7
EMPLOYMENT DECISION TOOL WAS USED THAT: 8
(1) AN AUTOMATED EMPLOYM ENT DECISION TOOL WAS USED IN 9
CONNECTION WITH THE APPLICANT’S APPLICATION FOR EMPL OYMENT; AND 10
(2) THE AUTOMATED EMPLOYM ENT DECISION TOOL : 11
(I) WAS SUBJECT TO AN IM PACT ASSESSMENT UNDE R 12
SUBSECTION (C) OF THIS SECTION; AND 13
(II) ASSESSED THE JOB QUA LIFICATIONS OR CHARA CTERISTICS 14
OF THE APPLICANT. 15
(E) (1) AN EMPLOYER THAT VIOL ATES THIS SECTION SH ALL BE 16
ASSESSED A CIVIL PEN ALTY OF: 17
(I) UP TO $500 FOR A FIRST VIOLATION; AND 18
(II) AT LEAST $500 BUT NOT EXCEEDING $1,500 FOR A SECOND 19
OR SUBSEQUENT VIOLAT ION. 20
(2) (I) EACH FAILURE OF AN EMPLOY ER TO PROVIDE THE NOTIC E 21
REQUIRED UNDER SUBSE CTION (D) OF THIS SECTION WITH IN THE REQUIRED TIME 22
PERIOD IS A SEPARATE VIOLATION. 23
(II) EACH 30–DAY PERIOD THEREAFTE R IN WHICH NOTICE IS 24
NOT PROVIDED TO THE APPLICANT FOR EMPLOY MENT IS A SEPARATE VIOLATION . 25
(F) THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 26
SECTION, INCLUDING REGULATIONS GOVERNIN G THE DEVELOPMENT AND 27
PERFORM ANCE OF IMPACT ASSESSMENTS F OR AUTOMATED EMPLOYM ENT 28
DECISION TOOLS . 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
October 1, 2024. 31