SF4573

Purpose

The bill aims to protect workers from AI-driven discrimination in employment and to require employers to tell workers and job applicants when AI is being used for employment decisions.

Key Definitions

• Artificial intelligence: A machine-based system that, using input it receives, infers outputs like predictions, content recommendations, and decisions that can affect real or virtual environments.
• Unfair employment practice: An employer using AI in a way that leads to discrimination or failing to notify that AI is being used for certain employment-related decisions.

Main Provisions

• Prohibition on discriminatory AI use in employment: It is an unfair employment practice for an employer to use AI in a way that subjects an employee or applicant to discrimination based on protected characteristics, including race, color, creed, religion, national origin, sex, gender identity, marital status, public assistance status, familial status, membership or activity in a local commission, disability, sexual orientation, or age, when making decisions about recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.
• Notice requirement: Employers must provide notice to an employee or applicant if the employer is using AI for the purposes described (i.e., for decisions related to the listed employment processes or conditions).

Scope and Covered Activities

• Applies to use of AI in employment decisions related to recruitment, hiring, promotion, renewal, training or apprenticeship selection, discharge, discipline, tenure, and the terms and conditions of employment.

Changes to Existing Law

• The bill adds a new subdivision (Subdivision 9) to Minnesota Statutes 2024, section 363A.08, creating a formal standard that prohibits AI-driven discrimination in employment and requires notice of AI use.

Practical Implications

• Employers must assess AI systems to ensure they do not discriminate against protected groups.
• Employers must be transparent about using AI in hiring and employment decisions.
• Violations could be treated as unlawful discrimination under state law, with penalties or remedies available to affected workers.

Relevant Terms - artificial intelligence - AI - machine-based system - predictions - content recommendations - decisions - unfair employment practice - discrimination - race - color - creed - religion - national origin - sex - gender identity - marital status - status with regard to public assistance - familial status - membership or activity in a local commission - disability - sexual orientation - age - recruitment - hiring - promotion - renewal of employment - training - apprenticeship - discharge - discipline - tenure - terms, privileges, or conditions of employment - notice - Minnesota Statutes 2024 section 363A.08 - Subdivision 9 (Use of artificial intelligence)