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Senate
File
2414
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Introduced
SENATE
FILE
2414
BY
BENNETT
A
BILL
FOR
An
Act
relating
to
automated
decision
systems
used
by
1
employers.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
10A.202,
subsection
2,
Code
2026,
is
1
amended
to
read
as
follows:
2
2.
The
department
is
responsible
for
the
administration
of
3
the
laws
of
this
state
under
chapters
88A
,
88B
,
89
,
89A
,
90A
,
4
91A
,
91C
,
91D
,
91E
,
91F,
and
92
,
and
such
other
labor-services
5
duties
assigned
to
the
department
or
director.
6
Sec.
2.
Section
10A.204,
subsection
3,
Code
2026,
is
amended
7
to
read
as
follows:
8
3.
The
director,
in
consultation
with
the
labor
9
commissioner,
shall,
at
the
time
provided
by
law,
make
an
10
annual
report
to
the
governor
setting
forth
in
appropriate
11
form
the
business
and
expense
of
the
division
and
department
12
under
this
subchapter
for
the
preceding
year,
the
number
13
of
remedial
actions
taken
under
chapter
89A
,
the
number
of
14
disputes
or
violations
processed
by
the
division
or
department
15
and
the
disposition
of
the
disputes
or
violations,
and
other
16
matters
pertaining
to
the
division
or
department
under
this
17
subchapter
which
that
are
of
public
interest,
together
with
18
recommendations
for
change
or
amendment
of
the
laws
in
this
19
chapter
and
chapters
88
,
88A
,
88B
,
89
,
89A
,
89B
,
90A
,
91A
,
91C
,
20
91D
,
91E
,
91F,
and
92
,
and
sections
85.67A
and
85.68
,
and
the
21
recommendations,
if
any,
shall
be
transmitted
by
the
governor
22
to
the
first
general
assembly
in
session
after
the
report
is
23
filed.
24
Sec.
3.
NEW
SECTION
.
91F.1
Definitions.
25
For
purposes
of
this
section,
unless
the
context
otherwise
26
requires:
27
1.
“Artificial
intelligence”
means
an
engineered
or
28
machine-based
system
that
varies
in
its
level
of
autonomy
and
29
that
can,
for
explicit
or
implicit
objectives,
infer
from
input
30
received
how
to
generate
outputs
that
can
influence
physical
31
or
virtual
environments.
32
2.
“Authorized
representative”
means
any
person
or
33
organization
appointed
by
the
employee
to
serve
as
an
agent
of
34
the
employee.
“Authorized
representative”
does
not
include
an
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employee’s
employer.
1
3.
“Automated
decision
system”
means
any
computational
2
process
derived
from
machine
learning,
statistical
modeling,
3
data
analytics,
or
artificial
intelligence
that
issues
4
simplified
output,
including
a
score,
classification,
or
5
recommendation,
that
is
used
to
assist
or
replace
human
6
discretionary
decision
making
and
materially
impacts
natural
7
persons.
“Automated
decision
system”
does
not
include
a
spam
8
electronic
mail
filter,
firewall,
antivirus
software,
identity
9
and
access
management
tool,
calculator,
database,
dataset,
or
10
other
compilation
of
data.
11
4.
“Automated
decision
system
output”
means
any
information,
12
data,
assumptions,
predictions,
scoring,
recommendations,
13
decisions,
or
conclusions
generated
by
an
automated
decision
14
system.
15
5.
“Department”
means
the
department
of
inspections,
16
appeals,
and
licensing.
17
6.
“Employee”
means
any
natural
person
who
provides
services
18
for
compensation
for
an
employer
in
any
workplace.
“Employee”
19
includes
an
independent
contractor.
20
7.
“Employee
data”
means
any
information
that
identifies,
21
relates
to,
or
describes
an
employee,
regardless
of
how
the
22
information
is
collected,
inferred,
or
obtained.
23
8.
“Employer”
means
any
person
who
directly
or
indirectly,
24
or
through
an
agent
or
any
other
person,
employs
or
exercises
25
control
over
the
wages,
benefits,
other
compensation,
hours,
26
working
conditions,
access
to
work
or
job
opportunities,
or
27
other
terms
or
conditions
of
employment
of
any
employee
in
this
28
state.
“Employer”
includes
a
person
who
contracts
for
labor
on
29
behalf
of
an
employer.
30
9.
“Employment-related
decision”
means
any
decision
by
31
an
employer
that
materially
impacts
an
employee’s
wages,
32
benefits,
compensation,
work
hours,
work
schedule,
performance
33
evaluation,
hiring,
discipline,
promotion,
termination,
job
34
tasks,
skill
requirements,
work
responsibilities,
assignment
of
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work,
access
to
work
and
training
opportunities,
productivity
1
requirements,
or
workplace
health
and
safety.
2
10.
“Quota”
means
a
work
standard
under
which
an
employee
3
is
assigned
or
required
to
perform
at
a
specified
productivity
4
speed,
to
perform
a
quantified
number
of
tasks,
or
to
handle
5
or
produce
a
quantified
amount
of
material,
within
a
defined
6
time
period
and
under
which
the
employee
may
suffer
an
adverse
7
employment
action
if
the
employee
fails
to
complete
the
8
performance
standard.
9
Sec.
4.
NEW
SECTION
.
91F.2
Automated
decision
systems
——
10
advance
notice.
11
1.
An
employer
shall
provide
a
written
notice
that
an
12
automated
decision
system
is
in
use
for
the
purpose
of
making
13
employment-related
decisions,
other
than
hiring
decisions,
at
14
the
workplace
to
an
employee
who
will
foreseeably
be
directly
15
affected
by
the
automated
decision
system,
or
the
employee’s
16
authorized
representative.
The
employer
shall
provide
the
17
notice
by
the
following
dates:
18
a.
At
least
thirty
days
before
an
automated
decision
system
19
is
first
deployed
by
the
employer.
20
b.
If
the
employer
is
using
an
automated
decision
system
21
to
assist
in
making
employment-related
decisions
as
of
the
22
effective
date
of
this
Act,
no
later
than
January
1,
2027.
23
c.
To
a
new
employee
within
thirty
days
of
hiring
the
24
employee.
25
2.
A
notice
provided
pursuant
to
subsection
1
shall
contain
26
all
of
the
following
information:
27
a.
The
type
of
employment-related
decisions
potentially
28
affected
by
the
automated
decision
system.
29
b.
A
general
description
of
the
categories
of
employee-input
30
data
the
automated
decision
system
will
use,
the
sources
of
31
employee
input
data,
and
how
employee
input
data
will
be
32
collected.
33
c.
Any
key
parameters
known
to
disproportionately
affect
the
34
output
of
the
automated
decision
system.
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d.
The
individuals,
vendors,
or
entities
that
created
the
1
automated
decision
system.
2
e.
If
applicable,
a
description
of
each
quota
set
or
3
measured
by
an
automated
decision
system
to
which
the
employee
4
is
subject,
including
the
quantified
number
of
tasks
to
be
5
performed
or
products
to
be
produced,
and
any
potential
adverse
6
employment
action
that
could
result
from
failure
to
meet
the
7
quota,
as
well
as
whether
those
quotas
are
subject
to
change
8
and
if
any
notice
is
given
of
changes
in
quotas.
9
f.
A
description
of
the
employee’s
right
to
access
and
10
correct
the
employee’s
data
used
by
the
automated
decision
11
system.
12
g.
That
the
employer
is
prohibited
from
retaliating
against
13
employees
for
exercising
the
rights
provided
in
this
chapter.
14
3.
A
written
notice
required
by
subsection
1
shall
15
be
written
in
plain
language
as
a
separate,
stand-alone
16
communication.
The
notice
shall
be
in
the
language
in
which
17
routine
communications
and
other
information
are
provided
to
18
employees.
The
notice
shall
be
provided
via
a
simple
and
19
easy-to-use
method,
including
but
not
limited
to
an
email,
20
electronic
link,
or
other
written
format.
21
4.
If
an
employer
will
use
an
automated
decision
system
22
in
making
hiring
decisions
for
a
position,
the
employer
shall
23
notify
an
applicant
for
the
position,
upon
receiving
the
24
application,
that
the
employer
utilizes
an
automated
decision
25
system
when
making
hiring
decisions.
The
employer
may
make
the
26
notification
using
an
automatic
reply
mechanism
or
on
a
job
27
posting.
28
5.
An
employer
shall
maintain
an
updated
list
of
all
29
automated
decision
systems
currently
in
use
by
the
employer
to
30
facilitate
implementation
of
this
section.
31
Sec.
5.
NEW
SECTION
.
91F.3
Employer
requirements.
32
1.
An
employer
shall
not
use
an
automated
decision
system
to
33
do
any
of
the
following:
34
a.
Prevent
compliance
with
or
violate
any
federal,
state,
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or
local
labor,
occupational
health
and
safety,
employment,
or
1
civil
rights
laws
or
regulations.
2
b.
Infer
an
employee’s
protected
status
under
chapter
216.
3
c.
Identify,
profile,
predict,
or
take
adverse
action
4
against
an
employee
for
exercising
the
employee’s
legal
rights,
5
including
but
not
limited
to
rights
guaranteed
by
state
and
6
federal
employment
and
labor
laws.
7
d.
Collect
employee
data
for
a
purpose
that
is
not
disclosed
8
pursuant
to
the
notice
requirements
in
section
91F.2.
9
e.
Rely
solely
on
an
automated
decision
system
when
making
a
10
discipline,
termination,
or
deactivation
decision.
11
2.
When
an
employer
relies
primarily
on
output
from
an
12
automated
decision
system
to
make
a
discipline,
termination,
or
13
deactivation
decision,
the
employer
shall
use
a
human
reviewer
14
to
review
the
automated
decision
system
output
and
compile
and
15
review
other
information
that
is
relevant
to
the
decision,
if
16
any.
For
purposes
of
this
subsection,
“other
information”
may
17
include
but
is
not
limited
to
any
of
the
following:
18
a.
Supervisory
or
managerial
evaluations.
19
b.
Personnel
files.
20
c.
Work
product
of
employees.
21
d.
Peer
reviews.
22
e.
Witness
interviews,
which
may
include
relevant
online
23
customer
reviews.
24
3.
An
employer
shall
not
use
customer
ratings
as
the
only
25
or
primary
input
data
for
an
automated
decision
system
to
make
26
employment-related
decisions.
27
Sec.
6.
NEW
SECTION
.
91F.4
Automated
decision
systems
——
28
notice
after
decision.
29
1.
An
employer
that
primarily
relied
on
an
automated
30
decision
system
to
make
a
discipline,
termination,
or
31
deactivation
decision
shall
provide
the
affected
employee
with
32
a
written
notice
at
the
time
the
employer
informs
the
employee
33
of
the
decision.
34
2.
A
notice
provided
pursuant
to
subsection
1
shall
contain
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all
of
the
following
information:
1
a.
The
individual
to
contact
for
more
information
about
the
2
decision.
3
b.
That
the
employer
used
an
automated
decision
system
to
4
assist
the
employer
in
one
or
more
discipline,
termination,
or
5
deactivation
decisions
with
respect
to
the
employee.
6
c.
That
the
employee
has
the
right
to
request
a
copy
of
the
7
employee’s
data
used
by
the
automated
decision
system.
8
d.
That
the
employer
is
prohibited
from
retaliating
against
9
the
employee
for
exercising
the
rights
provided
in
this
10
chapter.
11
3.
A
written
notice
required
by
subsection
1
shall
12
be
written
in
plain
language
as
a
separate,
stand-alone
13
communication.
The
notice
shall
be
in
the
language
in
which
14
routine
communications
and
other
information
are
provided
to
15
employees.
The
notice
shall
be
provided
via
a
simple
and
16
easy-to-use
method,
including
but
not
limited
to
an
email,
17
electronic
link,
or
other
written
format.
18
Sec.
7.
NEW
SECTION
.
91F.5
Employee
access
to
data.
19
An
employee
has
the
right
to
request
a
copy
of
the
most
20
recent
twelve
months
of
the
employee’s
own
data
primarily
21
used
by
an
automated
decision
system
to
make
a
discipline,
22
termination,
or
deactivation
decision.
An
employer
shall
23
provide
a
copy
upon
request.
An
employee
is
limited
to
one
24
such
request
every
twelve
months.
25
Sec.
8.
NEW
SECTION
.
91F.6
Privacy
of
personal
information.
26
For
purposes
of
safeguarding
the
privacy
rights
of
27
consumers,
employees,
and
individuals,
when
an
employer
is
28
required
to
provide
employee
data
pursuant
to
this
chapter,
the
29
employer
shall
provide
the
data
in
a
manner
that
anonymizes
30
the
personal
information
of
any
customer,
employee,
or
other
31
individual.
32
Sec.
9.
NEW
SECTION
.
91F.7
Retaliation
prohibited.
33
An
employer
shall
not
discharge,
threaten
to
discharge,
34
demote,
suspend,
or
in
any
manner
discriminate
or
retaliate
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against
any
employee
for
using
or
attempting
to
exercise
the
1
employee’s
rights
under
this
chapter,
filing
a
complaint
2
with
the
department
alleging
a
violation
of
this
chapter,
3
cooperating
in
an
investigation
or
prosecution
of
an
alleged
4
violation
of
this
chapter,
or
taking
any
action
to
invoke
or
5
assist
in
any
manner
the
enforcement
of
this
chapter.
6
Sec.
10.
NEW
SECTION
.
91F.8
Enforcement
——
penalties.
7
1.
The
department
shall
enforce
this
chapter.
Such
8
enforcement
may
include
but
is
not
limited
to
investigating
9
alleged
violations,
ordering
appropriate
temporary
relief
to
10
mitigate
a
violation,
issuing
a
citation
against
an
employer
11
who
violates
this
chapter,
conducting
contested
case
hearings
12
if
requested,
and
bringing
a
civil
action
in
district
court
for
13
enforcement.
14
2.
An
employer
who
violates
this
chapter
shall
be
subject
15
to
a
civil
penalty
of
five
hundred
dollars,
collectible
by
the
16
department
pursuant
to
subsection
1.
17
3.
A
person
subject
to
a
violation
of
this
chapter
may
18
bring
an
action
in
district
court
for
appropriate
temporary
19
or
preliminary
injunctive
relief,
including
punitive
damages,
20
and
reasonable
attorney
fees
and
court
costs.
The
department
21
may
bring
such
an
action
on
the
person’s
behalf
pursuant
to
22
subsection
1
with
the
person’s
consent.
23
Sec.
11.
NEW
SECTION
.
91F.9
Rules.
24
The
department
shall
adopt
rules
pursuant
to
chapter
17A
to
25
administer
this
chapter.
26
Sec.
12.
NEW
SECTION
.
91F.10
Construction
of
chapter.
27
This
chapter
shall
not
be
construed
to
prohibit
any
employer
28
from
complying
with
regulatory
or
contractual
requirements
29
in
the
provision
of
products
or
services
to
the
federal
30
government.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
relates
to
automated
decision
systems
used
by
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employers.
1
The
bill
requires
an
employer
to
provide
a
written
notice
2
that
an
automated
decision
system,
as
defined
in
the
bill,
is
3
in
use
for
the
purpose
of
making
employment-related
decisions,
4
other
than
hiring
decisions,
at
the
workplace
to
an
employee
5
who
will
foreseeably
be
directly
affected
by
the
automated
6
decision
system.
The
bill
specifies
the
time
period,
content,
7
and
format
of
such
notices.
8
If
an
employer
will
use
an
automated
decision
system
in
9
making
hiring
decisions
for
a
position,
the
bill
requires
10
the
employer
to
notify
an
applicant
for
the
position,
upon
11
receiving
the
application,
that
the
employer
utilizes
an
12
automated
decision
system
when
making
hiring
decisions.
13
The
bill
specifies
various
prohibited
uses
of
automated
14
decision
systems
by
employers
relating
to
employee
rights.
15
When
an
employer
relies
primarily
on
output
from
an
16
automated
decision
system
to
make
a
discipline,
termination,
17
or
deactivation
decision,
the
bill
requires
the
employer
to
18
use
a
human
reviewer
to
review
the
automated
decision
system
19
output
and
compile
and
review
other
specified
information
that
20
is
relevant
to
the
decision,
if
any.
21
The
bill
prohibits
an
employer
from
using
customer
ratings
22
as
the
only
or
primary
input
data
for
an
automated
decision
23
system
to
make
employment-related
decisions.
24
The
bill
requires
an
employer
that
primarily
relied
on
an
25
automated
decision
system
to
make
a
discipline,
termination,
26
or
deactivation
decision
to
provide
the
affected
employee
with
27
a
written
notice
at
the
time
the
employer
informs
the
employee
28
of
the
decision.
The
bill
specifies
the
content
and
format
of
29
the
notice.
30
The
bill
provides
that
an
employee
shall
have
the
right
to
31
request
a
copy
of
the
most
recent
12
months
of
the
employee’s
32
own
data
primarily
used
by
an
automated
decision
system
to
33
make
a
discipline,
termination,
or
deactivation
decision.
An
34
employer
shall
provide
a
copy
upon
request.
An
employee
is
35
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limited
to
one
such
request
every
12
months.
1
For
purposes
of
safeguarding
the
privacy
rights
of
2
consumers,
employees,
and
individuals,
when
an
employer
is
3
required
to
provide
employee
data
pursuant
to
the
bill,
the
4
employer
is
required
to
provide
the
data
in
a
manner
that
5
anonymizes
the
personal
information
of
any
customer,
employee,
6
or
other
individual.
7
The
bill
prohibits
an
employer
from
discharging,
threatening
8
to
discharge,
demoting,
suspending,
or
in
any
manner
9
discriminating
or
retaliating
against
any
employee
for
using
10
or
attempting
to
exercise
the
employee’s
rights
under
the
11
bill,
filing
a
complaint
alleging
a
violation
of
the
bill,
12
cooperating
in
an
investigation
or
prosecution
of
an
alleged
13
violation,
or
taking
any
action
to
invoke
or
assist
in
any
14
manner
the
enforcement
of
the
bill.
15
The
bill
is
enforced
by
the
department
of
inspections,
16
appeals,
and
licensing
(department).
Such
enforcement
may
17
include
but
is
not
limited
to
investigating
alleged
violations,
18
ordering
appropriate
temporary
relief
to
mitigate
a
violation,
19
issuing
a
citation
against
an
employer
who
violates
the
bill,
20
conducting
contested
case
hearings
if
requested,
and
bringing
a
21
civil
action
for
enforcement.
22
An
employer
who
violates
the
bill
shall
be
subject
to
a
civil
23
penalty
of
$500,
collectible
by
the
department.
24
A
person
subject
to
a
violation
of
the
bill
may
bring
25
an
action
in
district
court
for
appropriate
temporary
or
26
preliminary
injunctive
relief,
including
punitive
damages,
and
27
reasonable
attorney
fees
and
court
costs.
The
department
may
28
bring
such
an
action
on
the
person’s
behalf
with
the
person’s
29
consent.
30
The
bill
shall
not
be
construed
to
prohibit
any
employer
from
31
complying
with
regulatory
or
contractual
requirements
in
the
32
provision
of
products
or
services
to
the
federal
government.
33
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