Purpose

Establish rules for how employers use electronic monitoring tools to collect data on workers, protect worker privacy, and give workers rights to know, review, and challenge how their data is used. The bill defines key terms (like electronic monitoring tools, automated decision systems, and worker data) and sets requirements for notice, data handling, decision-making, and enforcement.

Key Provisions at a Glance

• Definitions setting the scope for what counts as electronic monitoring, automated decision systems, worker data, and who is an employer.
• Preuse notice: employers must inform workers, authorized representatives, and unions about electronic monitoring before use, with specific timing and language requirements; workers must consent in writing before monitoring begins; opt-out options if alternatives exist.
• Recordkeeping: employers must keep worker data collected by monitoring for 36 months after collection and have procedures to destroy data after 37 months unless the worker consents to longer retention; data must be kept secure; workers can request copies and corrections.
• Use and access limits: monitoring can only be used to support essential job functions, quality control, performance assessments, legal compliance, health/safety, or wage administration; data collection must be narrowly tailored and minimized; off-duty, private areas, and residence or personal devices may not be monitored; location tracking limited to work hours and necessary to perform essential functions.
• Prohibitions: prohibits monitoring that attempts to infer protected characteristics, track immigration or sensitive statuses, monitor private areas (bathrooms, break rooms, etc.), or use facial/gait/emotion recognition to predict unrelated behaviors; prohibits data collection for non-disclosed purposes.
• Employment-related decisions: decisions may not rely solely on monitoring data; if used in part, an internal reviewer must corroborate data and assess accuracy and biases; the reviewer must have authority and training to interpret monitoring outputs.
• Post-use notice and access rights: when a monitoring-derived decision affects a worker, the employer must provide timely notice with rights and a means to appeal; workers can access their data and supporting evidence; notices must be clear and in plain language.
• Right to appeal: workers can file an appeal; a designated human reviewer will evaluate evidence and can overturn the decision; process includes timelines and documentation.
• Data sale and security: restrictions on sharing or selling worker data; vendors must have security measures and be liable for breaches; data breach notices to workers; data must be returned or deleted at contract end.
• Enforcement and penalties: prohibits retaliation against workers who exercise these rights; state agency (Department of Labor and Industry) enforces and can issue citations; civil penalties apply per violation; joint and several liability for employers and contractors/vendors; allows local ordinances with greater protections; model notice language to help employers comply.

Main Provisions in Plain Terms

• Definitions to know:

  • Electronic monitoring tool: tech that collects data on worker activities, communications, biometrics, or behaviors (not just what a supervisor observes).
  • Automated decision system: computer processes using machine learning/AI that produce scores, classifications, or recommendations affecting workers.
  • Worker data: any information that identifies or relates to a worker, including personal, biometric, health, HR, productivity, communications, device use, audio/video data, and data from monitoring tools.
  • Authorized representative: someone the worker designates to act on their behalf.
  • Essential job functions: core duties of a position, determined by objective evidence and employer judgment.
  • Employer: the employer and its agents, including labor contractors or vendors; local/state government is included as an employer.

• Preuse notice requirements:

  • Notify workers, their authorized representatives, and unions before introducing monitoring; or by Sept. 1, 2026 for existing tools.
  • Notices must be plain language, in the worker’s language, and delivered in a way that’s easy to access (like email links).
  • Workers must give affirmative written consent before being subject to monitoring; opt-out options should exist if reasonable alternatives are available.
  • Notices must be delivered to the Minnesota commissioner and be available to authorized representatives.

• What must be in the notice:

  • Which data will be collected and for what purpose.
  • How and why the monitoring is necessary and why it’s the least invasive method.
  • What activities/locations will be monitored and with what technologies.
  • How often data is collected, where it’s stored, who can access it, and for how long.
  • Who are the vendors; whether data will feed automated decisions; whether it affects hiring, promotion, or productivity standards.
  • A current list of monitoring tools in use and workers’ rights under the bill.

• Data records and access:

  • Keep data for 36 months; destroy after 37 months unless the worker consents to longer retention.
  • Protect data with appropriate security measures.
  • Workers can request copies of their data and corroborating evidence; responses must be timely.
  • Workers can request corrections; employers must investigate and act if data is inaccurate, and inform third parties as needed.

• Use limitations and prohibitions:

  • Use monitoring only to support essential functions, quality, performance reviews, legal compliance, health/safety, or wage administration.
  • Keep data collection tightly focused and limited to the smallest group necessary and the least amount of data needed.
  • No monitoring of off-duty activity, private areas, or personal residence vehicles; no implants or personal devices required for data collection; no location tracking outside work hours unless strictly necessary for essential duties.
  • No adverse action solely based on continuous time-tracking data unless there is clear egregious misconduct.
  • Do not use monitoring to predict or infer unrelated traits or to discriminate against workers.

• Decision-making standards and oversight:

  • Do not rely solely on monitoring data to make employment decisions.
  • If monitoring data is used, a designated internal reviewer must corroborate data and assess accuracy, limits, and biases.
  • The reviewer must have authority, proper training, and protection from retaliation, and be able to overturn decisions if warranted.

• Post-use notices and access rights:

  • When a monitoring-derived decision affects a worker, provide a clear notice and a path to appeal.
  • Workers can access the data used to make the decision, how it was collected, and any corroborating evidence.
  • Notices include a right to appeal and how to initiate it.

• Appeals process:

  • Workers can file an appeal within 30 days.
  • A human reviewer assesses the evidence and can overturn the decision if warranted.
  • The employer must implement the reviewer’s decision within a short timeframe; the reviewer’s decision is documented and shared with both parties.

• Data security, sharing, and breach response:

  • Do not sell or transfer data unless tightly controlled (contractual limits, security requirements, liability for breaches).
  • Data can be shared with state or local government only when legally required.
  • Vendors must protect data and return or securely delete data at the contract’s end.
  • Breach notices must be provided to affected workers promptly.

• Enforcement and penalties:

  • Employers cannot retaliate against workers who exercise these rights.
  • The state labor department enforces and may issue citations, seek temporary relief, and pursue civil actions.
  • Civil penalties: $1,000 per violation for certain provisions and $2,500 per violation for others; each affected worker is a separate violation.
  • Employers and labor contractors or vendors are jointly and severally liable for violations.
  • Local ordinances can offer greater protection; provisions are severable; model notices to help compliance.

Significant Changes Compared to Current Practice

• Introduces a comprehensive framework for electronic monitoring in employment, not just ad hoc usage.
• Requires affirmative written consent and preuse notice before monitoring begins.
• Establishes explicit data categories (worker data) and strict limits on what can be monitored and how data can be used.
• Creates detailed processes for data retention, access, corrections, and corrections-based decision adjustments.
• Requires internal review and corroboration for any decisions that rely on monitoring data.
• Adds a formal post-use notice and appeal process for decisions influenced by monitoring data.
• Applies strong data security, breach notification, and vendor accountability rules.
• Provides robust enforcement mechanisms with civil penalties and joint liability for employers and contractors/vendors.

Possible Impacts on Workers and Employers

• Workers gain clearer rights to know when and how they are monitored, access their data, and challenge monitoring-driven decisions.
• Employers must set up notices, consent processes, data handling protocols, and governance around monitoring tools.
• Vendors and labor contractors become more tightly regulated and liable for data security and breaches.
• The bill emphasizes privacy and fairness, potentially reducing intrusive or discriminatory uses of monitoring data.

Relevant Terms electronic monitoring tool, worker data, automated decision system, artificial intelligence (AI), authorized representative, employer, employment-related decision, essential job functions, preuse notice, post-use notice, data retention, data security, data breach, records, access rights, corrections, internal reviewer, appeal, civil penalties, joint and several liability, vendor, monitoring tools, time tracking, geolocation, off-duty monitoring, privacy protections