EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0957*
SENATE BILL 957
K3 4lr2564
CF 4lr2562
By: Senator Hester
Introduced and read first time: February 2, 2024
Assigned to: Finance
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 SENATE BILL 957
ALGORITHMIC DECISION SYSTEM THAT AUTOMATI CALLY FILTERS: 1
(I) APPLICANTS OR POTENT IAL APPLICANTS FOR 2
EMPLOYMENT ; OR 3
(II) FOR A TERM, CONDITION, OR PRIVILEGE OF EMPLOYMENT 4
IN A WAY THAT ESTABL ISHES A PREFERRED AP PLICANT FOR EMPLOYME NT. 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 DISPARATE I MPACT ON AN INDIVIDU AL 10
OR A GROUP OF INDIVI DUALS ON THE BASIS O F AN ACTUAL OR PERCE IVED 11
CHARACTERISTIC . 12
(6) “IMPACT ASSESSMENT ” MEANS A DOCUMENTED R ISK–BASED 13
EVALUATION OF A SYST EM THAT EMPLOYS AN A LGORITHMIC DECISION 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 E MPLOYER DECIDE COMPE NSATION OR 18
OTHER TERMS , CONDITIONS, OR PRIVILEGES OF EMPLOYMENT 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 EMPLOY MENT DECISION TOOL : 23
(I) WAS SUBJECT TO AN IM PACT ASSESSMENT DURI NG THE 24
YEAR THAT IMMEDIATELY PRECEDES THE DATE THE EMPLOYE R 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
SENATE BILL 957 3
(2) THE IMPACT ASSESSMEN TS REQUIRED UNDER IT EM (1) OF THIS 1
SUBSECTION DETERMINE T HAT USE OF THE AUTOM ATED EMPLOYMENT DECI SION 2
TOOL WOULD NOT INVOL VE A HIGH–RISK ACTION. 3
(D) IF AN EMPLOYER USES A N AUTOMATED EMPLOYME NT 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 N OTIFY 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 WA S USED IN 9
CONNECTION WITH THE APPLICANT’S APPLICATION FOR EMPLOYMENT ; AND 10
(2) THE AUTOMATED EMPLOY MENT 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 VIOLATES THIS S ECTION SHALL BE 16
ASSESSED A CIVIL PEN ALTY OF: 17
(I) UP TO $500 FOR A FIRST VIOLATIO N; 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 EM PLOYER TO PROVIDE TH E NOTICE 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 V IOLATION. 25
(F) THE DEPARTMENT SH ALL ADOPT REGULATION S TO CARRY OUT THIS 26
SECTION, INCLUDING REGULATION S GOVERNING THE DEVE LOPMENT AND 27
PERFORMANCE OF IMPAC T ASSESSMENTS FOR AU TOMATED EMPLOYMENT 28
DECISION TOOLS . 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
October 1, 2024. 31