AI Frontier Institute

A bill for an act relating to automated decision systems used by employers.

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Iowa Senate File 2414 (introduced by Senator Bennett) creates a new chapter 91F regulating employer use of automated decision systems (ADS). Under Section 91F.1, an ADS is defined as any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output used to assist or replace human discretionary decision-making and materially impacts natural persons. Section 91F.2 requires employers to give affected employees at least 30 days advance written notice before deploying an ADS for employment-related decisions (other than hiring), and to notify job applicants upon application if an ADS will be used in hiring decisions. The notice must describe the types of decisions affected, categories of employee data used, key parameters, quota details, and employee data-access rights. Section 91F.3 prohibits employers from using an ADS to infer protected status, retaliate against employees exercising legal rights, collect undisclosed data, or make discipline, termination, or deactivation decisions solely by ADS; when an ADS primarily drives such decisions, a human reviewer must also review the output and other relevant information. Customer ratings alone cannot be the primary ADS input for employment decisions. Section 91F.4 requires a written post-decision notice to affected employees whenever an ADS primarily drove a discipline, termination, or deactivation decision. Section 91F.5 gives employees the right to request up to 12 months of their own ADS-used data once every 12 months. Section 91F.6 requires anonymization of personal information when employee data is disclosed. Section 91F.7 prohibits employer retaliation against employees who exercise rights under the chapter. Section 91F.8 assigns enforcement to the Department of Inspections, Appeals, and Licensing, with a $500 civil penalty per violation, plus private district court actions for injunctive relief, punitive damages, and attorney fees. Section 91F.10 clarifies that the chapter does not prevent employers from complying with federal government contractual or regulatory requirements.

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