Bill H.262 introduces significant regulations regarding the electronic monitoring of employees and the use of automated decision systems in employment-related decisions. It establishes a new section, 21 V.S.A. 495q, which defines essential terms such as "electronic monitoring," "automated decision system," and "employee." The bill mandates that employers must provide prior notice to employees about monitoring practices and ensure that such monitoring is the least invasive necessary. It also requires that data collection be limited to what is minimally necessary and that access to this data is restricted to authorized personnel. Certain forms of monitoring, including off-duty employee monitoring and audio-visual monitoring in private areas, are explicitly prohibited, along with the use of data for discriminatory purposes.

Furthermore, the bill places restrictions on automated decision systems, prohibiting employers from relying solely on their outputs for employment decisions and requiring human oversight to corroborate these outputs. Employers must conduct impact assessments of these systems and inform employees about their purpose, logic, data sources, and rights concerning their data. The use of technologies such as facial, gait, voice, or emotion recognition in automated decision systems is also banned. The legislation emphasizes employee privacy by mandating reasonable security measures for personal information and granting employees the right to access and correct their data. Retaliation against employees exercising their rights under this bill is strictly prohibited, with the provisions set to take effect on July 1, 2025.