Bill H.262 introduces regulations aimed at enhancing employee privacy and rights concerning electronic monitoring and automated decision systems in the workplace. It establishes a new section, 21 V.S.A. 495q, which defines key terms such as "electronic monitoring," "automated decision system," and "employee." The bill stipulates that employers must provide at least 15 days' notice to employees before any monitoring occurs, detailing the purpose, methods, and data usage. It prohibits monitoring off-duty employees, using monitoring to penalize employees for exercising their legal rights, and monitoring private areas. Additionally, it restricts the use of automated decision systems, ensuring that employers do not rely solely on these systems for employment decisions and that any outputs must be corroborated by human oversight.

Furthermore, the bill mandates that employers conduct impact assessments of automated decision systems and comply with specific notice requirements regarding their use. It requires employers to implement reasonable security measures to protect personal information and to return or destroy data upon contract termination. Employees are granted rights to access and correct their data, and the bill prohibits retaliation against those who assert their rights under this legislation. The provisions of the act are set to take effect on July 1, 2025, reinforcing protections for employees in the evolving landscape of workplace technology.