AI Frontier Institute

Use of automated decision systems in employment settings regulated.

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Minnesota H.F. 4445 has not been enacted. It was introduced March 18, 2026 and referred to the House Workforce, Labor, and Economic Development Finance and Policy committee, where it remains. If enacted, it would add new sections 181.9921 to 181.9927 to Minnesota Statutes chapter 181 to regulate employers' use of automated decision systems (ADS) in employment. It covers job applicants, employees, and independent contractors, and covers state and local government employers. Notice and consent (181.9922): Employers must give written notice before using an ADS for employment-related decisions. Notice goes to affected workers and to any union. It is due 30 days before a new system or a significant change, and by September 1, 2026 for existing systems. Applicants and new workers must get notice before their data is collected. Copies go to the commissioner of labor and industry within ten days. Workers must give affirmative written consent before being subject to an ADS, and may opt out if reasonable alternatives exist. The notice must describe the system's purpose, data used, logic, vendors, impact assessment results, and worker rights. Records (181.9923): Employers must keep ADS-related worker data for 36 months and destroy it by 37 months unless the worker consents to retention. Workers may request copies of their data within a seven-day response window. They may also request corrections, and employers must investigate, fix inaccurate data, adjust affected decisions, and notify third parties. Employer requirements (181.9924): Employers may not use an ADS to: - violate the law; - infer protected or sensitive traits such as immigration status, health, or political beliefs; - predict characteristics unrelated to essential job functions; - retaliate against workers for exercising legal rights; - use facial, gait, or emotion recognition; or - collect data for undisclosed purposes. Individualized pay-setting is restricted. Adverse action based on continuous time-tracking data is barred except for egregious misconduct. Employers may not rely solely on an ADS for a decision. A qualified designated internal reviewer must corroborate its output. Post-use notice and access (181.9925): Workers must get written notice after an ADS-assisted decision. For discipline or termination, notice is due at least 30 days before it takes effect. Workers may request a detailed explanation of the decision, and employers must respond within 14 calendar days. Vendors must assist. Appeals (181.9926): Workers get an appeal form and have 30 days to file. The employer must respond within five business days. A human reviewer who was not involved in the original decision and has authority to overturn it decides the appeal. Overturned decisions must be rectified within five business days. Enforcement (181.9927): Retaliation is prohibited. The commissioner of labor and industry enforces the law, and the attorney general or aggrieved workers (or their exclusive representative) may also sue. Remedies include damages, punitive damages, injunctive relief, and attorney fees. Civil penalties are $1,000 per violation for sections 181.9922 and 181.9925, and $2,500 per violation for sections 181.9923, 181.9924, and 181.9926. Employers and their vendors or labor contractors are jointly and severally liable. Local ordinances giving equal or greater protection are not preempted. The commissioner must publish model notice language.

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