AI Frontier Institute

Employment decisions; automated decision systems, civil penalty.

View primary source →

Virginia House Bill 1514 (introduced January 23, 2026) adds three new code sections to regulate the use of automated decision systems (ADS) in employment decisions across state agencies, local government entities, and private employers. Section 2.2-1202.2 directs the Director of the Department of Human Resource Management to require state agencies using an ADS as a 'substantial factor' in employment decisions to: (1) ensure compliance with federal and state law including the Virginia Human Rights Act; (2) disclose to affected individuals that an ADS is being used, its intended purpose, the data inputs and their sources, how it will be used in decision-making, and how personal data may be shared; (3) give individuals the right to opt out and provide disability accommodations; (4) conduct annual testing for algorithmic discrimination and certify legal compliance; (5) handle personal data lawfully; and (6) train staff on applicable law. No state agency may make an employment decision without a human decision maker, and no decision may be based solely on ADS output. A complaint and investigation process must be established. Section 15.2-1500.2 imposes identical requirements on local government departments, offices, boards, commissions, agencies, and instrumentalities, including the human-decision-maker mandate and a local complaint process. Section 40.1-28.7:12 extends the human-decision-maker requirement to all private employers, prohibiting any employer from making a final employment decision solely on ADS recommendations. Employers who knowingly violate this section face civil penalties up to $500 for a first violation and up to $1,500 for each subsequent violation, assessed by the Commissioner of Labor and Industry and paid to the Literary Fund. The Commissioner must notify alleged violators by certified mail, allow an informal conference within 15 days, and consider business size and violation gravity when setting penalties. The Commissioner may also petition a circuit court for injunctive or other enforcement relief.

← Back to the tracker