Labor and Employment – Automated Employment Decision Tools – Prohibition
Impact
If enacted, SB957 would impose significant restrictions on employers regarding their hiring processes, mandating them to conduct annual impact assessments on any automated decision tools they wish to use. The assessments must evaluate whether these tools could lead to unlawful discrimination or disparate impacts. For employers who fail to adhere to these regulations, there are civil penalties outlined in the bill, including fines that increase with the number of violations. This regulation marks a substantial shift in employment practices, emphasizing the need for transparency in automated hiring decisions.
Summary
Senate Bill 957 seeks to regulate the use of automated employment decision tools in Maryland by prohibiting their use in making certain employment decisions unless specific criteria are met. The bill defines an 'automated employment decision tool' as a system that automatically evaluates job applicants or determines their eligibility for certain employment conditions, which includes the use of algorithms and machine learning systems. This aims to combat potential biases and discrimination that these tools may inadvertently perpetuate.
Contention
The bill has sparked dialogues around the balance of technology use in employment and the rights of applicants. Proponents argue that stringent regulations are necessary to prevent discriminatory practices that can arise from algorithmic hiring methods. Detractors may express concerns about the potential overreach of government regulations in business practices and the possible hindrance to innovation in hiring processes. Thus, while SB957 is designed to protect applicants from biases in automated employment processes, it also poses challenges for employers aimed at leveraging technology in their hiring practices.