This bill aims to regulate the use of automated employment decision tools in hiring processes to mitigate potential discrimination. It defines an "automated employment decision tool" as any system that uses statistical methods or algorithms to filter candidates for employment. The bill prohibits the sale of such tools in New Jersey unless they have undergone a bias audit within the past year, include an annual bias audit service at no extra cost, and come with a notice indicating their compliance with the bill's provisions. Employers using these tools must also provide a summary of the most recent bias audit on their websites.
Additionally, the bill mandates that candidates be notified within 30 days if an automated employment decision tool was used in their application process. This notification must include information about the tool's use, the job qualifications assessed, and, upon request, details about the data collected and the employer's data retention policy. The bill establishes civil penalties for violations, reinforcing the rights of candidates and ensuring that the use of automated tools does not infringe upon existing anti-discrimination laws.