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SENATE BILL NO. 1077
A bill to prescribe the circumstances under which an employer,
third party, or service provider may use an automated decisions
tool or electronic monitoring tool; to require the retention of
certain data and documents; to require an impact assessment of
electronic monitoring tools and automated decisions tools; to
require an employer to provide covered individuals and certain
labor organizations notice of certain events; to require an
employer to provide certain benefits to certain individuals under
certain circumstances; to provide for the powers and duties of
June 24, 2026, Introduced by Senators CAMILLERI, SANTANA, MCMORROW, SHINK,
GEISS, KLINEFELT, BRINKS, MOSS, CHERRY, IRWIN, SINGH, CAVANAGH,
CHANG, BAYER, HERTEL, MCCANN, GREENE and ANTHONY and referred to
Committee on Labor.
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certain state governmental officers and entities; to provide
remedies; to prescribe civil sanctions; and to require the
promulgation of rules.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act may be cited as the "responsible artificial 1
intelligence security for employees act". 2
Sec. 3. As used in this act: 3
(a) "Applicant" means an individual who applies or applied to 4
be employed by, or otherwise perform work for remuneration for, an 5
employer. 6
(b) "Automated decisions tool" means any computational 7
process, including, but not limited to, computational processes 8
derived from machine learning, statistical modeling, data 9
analytics, or artificial intelligence, that issues simplified 10
outputs, including, but not limited to, a score, classification, or 11
recommendation, that is used to substantially assist or replace 12
discretionary decision making for making employment decisions that 13
affect a covered individual. 14
(c) "Covered individual" means an individual who is either of 15
the following: 16
(i) An employee. 17
(ii) An applicant. 18
(d) "Data" means recorded information regardless of the form 19
or the media on which the information is recorded. 20
(e) "Department" means the department of labor and economic 21
opportunity. 22
(f) "Dependent" means an individual who receives more than 1/2 23
of the individual's cost of support from the income of a covered 24
individual, including any of the following of the covered 25
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individual: 1
(i) Child, stepchild, adopted child, or grandchild, if the 2
individual meets any of the following conditions: 3
(A) Is younger than 18 years of age. 4
(B) Is older than 18 years of age and because the individual 5
has physical or mental infirmity, the individual is unable to 6
engage in gainful employment. 7
(C) The individual is younger than 22 years of age and is a 8
full-time student. 9
(ii) Spouse. 10
(iii) Parent if the parent is older than 65 years of age or is 11
unable to engage in gainful employment. 12
(iv) Sibling if the sibling meets any of the following 13
conditions: 14
(A) Is younger than 18 years of age and is orphaned or the 15
living parents of the sibling are dependent parents to the covered 16
individual. 17
(B) Is older than 18 years of age and because the sibling has 18
physical or mental infirmity, the individual is unable to engage in 19
gainful employment. 20
(C) The sibling is younger than 22 years of age and is a full-21
time student. 22
(g) "Director" means the director of the department or the 23
director's designee. 24
(h) "Electronic monitoring tool" means any system that 25
facilitates the collection of data concerning a covered 26
individual's activities or communications by any means other than 27
direct observation, including the use of a computer, telephone, 28
wire, radio, camera, electromagnetic, photoelectronic, or photo-29
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optical system. 1
(i) "Employee" means an individual, or an authorized 2
representative acting on behalf of an individual, who is employed 3
by, or is an independent contractor who provides service to, or 4
through, an employer that operates in the state. 5
(j) "Employer" means a person that employs, or otherwise 6
engages for the performance of work for remuneration, 1 or more 7
individuals in this state. Employer includes a third party or 8
service provider that an employer uses for electronic monitoring or 9
employment-related decisions. 10
(k) "Employment-related decision" means any decision made by 11
an employer that affects wages, benefits, other compensation, 12
hours, work schedule, performance evaluation, hiring, discipline, 13
promotion, termination, job content, assignment of work, access to 14
work opportunities, productivity requirements, workplace health and 15
safety, and other terms or conditions of employment. For an 16
independent contractor or applicant for employment, employment-17
related decisions means the equivalent of these decisions based on 18
the independent contractor's or candidate's contract with or 19
relationship to the employer. 20
(l) "Labor organization" means either of the following: 21
(i) Labor organization as that term is defined in section 2 of 22
1939 PA 176, MCL 423.2. 23
(ii) Bargaining representative as that term is defined in 24
section 1 of 1947 PA 336, MCL 423.201. 25
(m) "Person" means an individual or a partnership, 26
corporation, limited liability company, association, governmental 27
entity, or other legal entity. 28
(n) "Security breach" means the unauthorized access and 29
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acquisition of data that compromises the security or 1
confidentiality of personal information maintained by a person or 2
agency as part of a database of personal information regarding 3
multiple individuals. 4
(o) "Qualified characteristic" means an individual's race, 5
color, religious creed, national origin, disability, sex, gender 6
identity, sexual orientation, genetic information, pregnancy or a 7
condition related to pregnancy, including, but not limited to, 8
lactation or the need to express breast milk for a nursing child, 9
ancestry, or status as a veteran. 10
Sec. 4. (1) Except as otherwise provided in subsection (2), an 11
employer shall not use an automated decisions tool to make an 12
employment-related decision. 13
(2) An employer may use an automated decisions tool to screen 14
large volumes of job applications to do either of the following: 15
(a) Identify candidates who meet a set hiring criteria. 16
(b) Assess candidates based on job skills. 17
Sec. 5. (1) Except as provided in this act, an employer shall 18
not use an electronic monitoring tool or automated decisions tool 19
to collect a covered individual's data. 20
(2) An employer may use an electronic monitoring tool for only 21
the following purposes: 22
(a) To allow an employee to accomplish or facilitate an 23
essential job function. 24
(b) To monitor production processes or quality. 25
(c) To periodically assess an employee's performance. 26
(d) To ensure or facilitate compliance with state or federal 27
labor or employment law. 28
(e) To protect the health, safety, or security of covered 29
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individuals. 1
(f) To administer wages and benefits, if it can be determined 2
that the electronic monitoring system uses only data regarding the 3
city where the covered individual works and the costs of living in 4
that area. 5
(g) To accomplish any other purpose that enables business 6
operations as determined by the department. 7
(3) An employer that uses an electronic monitoring tool or 8
automated decisions tool must do all of the following: 9
(a) Provide written notice that the employer is using an 10
electronic monitoring tool or automated decisions tool to all 11
covered individuals who are subject to the tool. 12
(b) Obtain written consent from each covered individual to 13
electronically monitor or use an automated decisions tool on the 14
covered individual in accordance with this act. 15
(c) Ensure that data collected through the electronic 16
monitoring tool or automated decisions tool is accurate and up to 17
date. 18
(d) Allow a covered individual to correct inaccurate data 19
about that covered individual. 20
(e) Use the tool in a narrowly tailored manner to accomplish a 21
purpose described in subsection (2) or section 4(2). 22
(f) Use the tool through the least invasive means possible for 23
the covered individual whom the tool monitors. 24
(g) Ensure the tool applies to the smallest number of covered 25
individuals, collects the least amount of data, and is used no more 26
frequently than necessary to accomplish a purpose described in 27
subsection (2) or section 4(2). 28
(h) Ensure that the tool does not collect any data of an 29
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employee when the employee is off duty. 1
(4) An employer that uses an electronic monitoring tool for a 2
purpose described in subsection (2) or an automated decisions tool 3
for a purpose described in section 4(2) shall not do any of the 4
following: 5
(a) Collect any of the following data of a covered individual: 6
(i) Health, medical, lifestyle, and wellness information, 7
including, but not limited to, the covered individual's medical 8
history, physical or mental condition, diet or physical activity 9
patterns, heart rate, medical treatment or diagnosis by a health 10
care professional, health insurance policy number, subscriber 11
identification number, or other unique identifier used to identify 12
the covered individual. 13
(ii) A qualified characteristic. 14
(iii) Information related to workplace activities, including, 15
but not limited, all of the following: 16
(A) Human resources information, including contents of a 17
covered individual's personnel file or performance evaluations. 18
(B) Work process information, such as productivity and 19
efficiency information. 20
(C) Information that captures workplace communications and 21
interactions, including emails, texts, internal message boards, and 22
customer interaction and ratings. 23
(D) Device usage, including calls placed or geolocation 24
information. 25
(E) Audio-video information and other information collected 26
from sensors, including movement tracking, thermal sensors, 27
voiceprints, or facial, emotion, and gait recognition. 28
(F) Inputs of or outputs generated by an automated decisions 29
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tool that are linked to a covered individual. 1
(G) Online information, including a covered individual's 2
internet protocol address, private social media activity, or other 3
digital sources or unique identifiers associated with a covered 4
individual. 5
(b) Identify, punish, or obtain data about a covered 6
individual who engages in an activity that is protected under state 7
or federal labor or employment law. 8
(c) Monitor bathrooms or other similar private areas, 9
including, but not limited to, locker rooms, changing areas, 10
breakrooms, smoking areas, employee cafeterias, lounges, areas 11
designated to express breast milk, or areas designated for prayer 12
or other religious activity. The prohibition under this subdivision 13
includes data collection on the frequency of use of those private 14
areas and conducting audio or visual monitoring of a workplace in 15
an employee's residence, an employee's personal vehicle, or 16
property owned or leased by an employee. 17
(5) An employer shall not use an electronic monitoring tool or 18
automated decisions tool that is equipped with facial, gait, voice, 19
or emotion recognition technology. 20
Sec. 7. (1) An employer that collects a covered individual's 21
data shall retain the data for not more than 3 years after the date 22
on which the purpose for using the electronic monitoring tool or 23
automated decisions tool is achieved, unless otherwise specified by 24
a collective bargaining agreement. If the employer does not use any 25
specific data of a covered individual, the employer must delete 26
that data immediately. 27
(2) An employer shall not sell or license a covered 28
individual's data, including, but not limited to, data that is 29
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deidentified or aggregated. 1
(3) An employer shall not share data collected under section 4 2
or 5 with this state or a local unit of government unless otherwise 3
necessary to do any of the following: 4
(a) Provide information to the department. 5
(b) Comply with the requirements of federal, state, or local 6
law. 7
(c) Comply with a court-issued subpoena, warrant, or order. 8
Sec. 9. (1) Before an employer uses an automated decisions 9
tool under section 4 or an electronic monitoring tool under section 10
5, the employer shall conduct an impact assessment of the tool that 11
meets all of the following requirements: 12
(a) Evaluates the tool's objectives, algorithms, data, 13
cybersecurity vulnerabilities, and potential biases, including, but 14
not limited to, discriminatory outcomes based on race, gender, or 15
disability. 16
(b) Is conducted 1 year before the tool is implemented, or, 17
for a tool already in use on the effective date of this act, not 18
more than 6 months after the effective date of this act. 19
(c) Is conducted by an independent and impartial third party 20
with no financial or legal conflicts of interests related to the 21
use of the tool. 22
(d) Identifies and describes the attributes and modeling 23
techniques that the tool uses to produce outputs. 24
(e) Evaluates whether the attributes and modeling techniques 25
described in subdivision (d) are a scientifically valid means of 26
evaluating a covered individual's performance or ability to perform 27
the essential functions of a role, and whether those attributes may 28
function as a proxy for belonging to a protected class under the 29
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Elliot-Larsen civil rights act, 1976 PA 453, MCL 37.2101 to 1
37.2804. 2
(f) Considers, identifies, and describes both of the following 3
that may result in a disparate impact on a covered individual based 4
on the covered individual's qualified characteristic, and what 5
actions may be taken by the employer to reduce or remedy any 6
disparate impact. 7
(i) Any disparities in the data used to train or develop the 8
tool. 9
(ii) Any outputs produced by the tool. 10
(g) Evaluates whether the use of the tool may limit 11
accessibility for covered individuals with disabilities, or for 12
covered individuals with any specific disability, and what actions 13
may be taken by the employer to reduce or remedy the limit on 14
accessibility. 15
(h) Considers and describes potential sources of adverse 16
impact against covered individuals or groups based on a qualified 17
characteristic that may arise after the tool is implemented. 18
(i) Identifies and describes any other assessment of risks of 19
discrimination or a disparate impact of the tool on covered 20
individuals or groups based on a qualified characteristic, and what 21
actions may be taken to reduce or remedy that risk. 22
(j) For any finding of a disparate impact or limit on 23
accessibility, evaluates whether the data set, attribute, or 24
feature of the tool at issue is the least discriminatory method of 25
assessing a covered individual's performance or ability to perform 26
job functions. 27
(k) Considers and describes any other ways in which the tool 28
could result in a violation of applicable law and, for any finding 29
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that a violation of law may occur, any necessary or appropriate 1
steps to prevent a violation. 2
(l) Considers and describes whether use of the tool may 3
negatively affect a covered individual's privacy or job quality, 4
including wages, hours, and working conditions. 5
(2) Not more than 60 days after an employer completes an 6
assessment, the employer shall do both of the following: 7
(a) Submit the assessment in its entirety or in an accessible 8
summary form to the department for the department to include in a 9
public registry of impact assessments. 10
(b) Distribute the assessment to covered individuals who may 11
be subject to the tool. 12
(3) An employer shall conduct or commission subsequent impact 13
assessments each year in which the electronic monitoring tool or 14
automated decisions tool is in use. Subsequent impact assessments 15
must comply with the requirements of subsection (1), as applicable, 16
and must assess and describe any change in the validity or 17
disparate impact of the tool. 18
(4) An employer shall retain all documentation pertaining to 19
the design, development, use, and data of an electronic monitoring 20
tool or automated decisions tool that may be necessary to conduct 21
an impact assessment. The documentation includes, but is not 22
limited to, the source of the data used to develop the tool, the 23
technical specifications of the tool, individuals involved in the 24
development of the tool, historical use data for the tool, and a 25
historical record of the versions of the tool the employer uses. 26
(5) A service provider that contracts with an employer to 27
provide electronic monitoring or automated decisions shall allow 28
the employer access to the documentation described in subsection 29
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(4). 1
(6) An employer shall share the documentation described in 2
subsection (4) with a labor organization as required under law or 3
as required by a court or agency in connection with any employment 4
or labor litigation to which the employer is a party. 5
(7) The documentation described in subsection (4) must be 6
stored in manner as prescribed by the director. The director shall 7
prescribe the manner so that the documentation is legible and 8
accessible to the party that conducts an impact assessment of the 9
tool. 10
Sec. 11. (1) If an employer has a security breach of data 11
collected through an electronic monitoring tool or automated 12
decisions tool, the employer must do all of the following: 13
(a) Promptly secure the electronic monitoring systems or 14
automated decisions tools, mitigate harm, and certify that 15
corrective steps were taken. 16
(b) Not more than 48 hours after the discovery of the security 17
breach, provide notice of the security breach to all of the covered 18
individuals whose data is affected by the security breach. The 19
notice must include all of the following: 20
(i) A summary of how the breach occurred. 21
(ii) The specific data that was compromised, if known. 22
(iii) How the employer is responding to the security breach. 23
(iv) Information on any necessary steps the employee can take 24
to help secure the employee's data or apply for employer-covered 25
protections under subdivision (c). 26
(c) Provide all of the following to the covered individuals 27
whose data is affected by the security breach: 28
(i) Ten years of paid premium identity theft protection and 29
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insurance, including, but not limited to, an insurance policy of 1
not less than $5,000,000.00 that covers financial loss, expense 2
reimbursement, and legal fees for each affected covered individual. 3
(ii) Comprehensive credit monitoring that also covers a covered 4
individual's dependents if the dependents' data is compromised. 5
(iii) Dark web monitoring. 6
(iv) Account breach alerts. 7
(v) A 3-bureau credit freeze. 8
(vi) Expert fraud remediation that is based in the United 9
States. 10
(vii) Social Security number monitoring and the cost of 11
reissuance. 12
(viii) Bank fraud and financial transaction monitoring. 13
(d) Provide notice of the security breach to the department 14
and the attorney general. 15
(2) After a security breach has occurred as described in 16
subsection (1), the employer must contract with a third party to 17
perform an audit of the electronic monitoring tool or automated 18
decisions tool to ensure that any vulnerabilities have been fixed. 19
Sec. 13. (1) If an employer uses an electronic monitoring tool 20
or automated decisions tool, the employer must display a poster at 21
the employer's place of business, in a conspicuous place accessible 22
to the employer's employees, that includes, but is not limited to, 23
notice of the use of an electronic monitoring tool or automated 24
decisions tool. 25
(2) Not less than 30 days before an employer implements an 26
electronic monitoring tool or automated decisions tool, the 27
employer shall provide notice, in writing, of the tool's use to all 28
of the employer's employees. The employer shall also include the 29
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notice in every job posting, post the notice on the employer's 1
website, provide the notice directly to every applicant, and make 2
the notice available in accessible formats that account for the 3
applicant's first language, if it is not English, and any 4
disability the applicant may have. The notice must provide a 5
covered individual with the ability to opt out of the electronic 6
monitoring tool or automated decisions tool. 7
(3) If a covered individual opts out of the use of an 8
electronic monitoring tool or automated decisions tool under 9
subsection (2), the employer shall not use the electronic 10
monitoring tool or automated decisions tool to make any employment-11
related decisions for that covered individual. 12
Sec. 15. (1) A covered individual aggrieved by a violation of 13
this act, or a person acting on behalf of a covered individual 14
aggrieved by a violation of this act, including, but not limited 15
to, a labor organization, may bring an action for damages, 16
injunctive relief, or both. A court may award economic damages, 17
noneconomic damages, or both plus costs and attorney fees to a 18
plaintiff who prevails in an action brought under this section. 19
(2) A person that violates this act is subject to a civil fine 20
of not more than $500.00. The prosecutor of the county in which the 21
violation occurred or the attorney general may bring an action to 22
collect the fine. The court may issue an injunction to enforce 23
compliance with this act and award costs and reasonable attorney 24
fees for the action. 25
Sec. 17. (1) This act provides minimum standards for the use 26
of an electronic monitoring or automated decisions tool and must 27
not be construed to preempt, diminish, or interfere with the right 28
of employees to collectively bargain under section 30 of 1939 PA 29
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176, MCL 423.30 or section 15 of 1947 PA 336, MCL 423.215, over the 1
terms and conditions of employment, including, but not limited to, 2
protections against surveillance-based wage discrimination. 3
(2) If an employer's employees are covered by a collective 4
bargaining act in effect on the effective date of this act and the 5
employer intends to use an electronic monitoring tool or automated 6
decisions tool, the employer must provide notice of the use in 7
accordance with section 13 and an opportunity to bargain over the 8
intended use of the tool to set or influence employee wages or 9
other terms and conditions of employment. 10
(3) If an employer's employees are covered by a collective 11
bargaining agreement in effect on the effective date of this act, 12
not less than 30 days before the start of any collective 13
bargaining, the employer must provide the employees' bargaining 14
representative with necessary information for bargaining, 15
including, but not limited to, data collected, impact assessments, 16
and data breaches that have occurred. 17
(4) Any rights or protections negotiated through a collective 18
bargaining agreement that exceed the requirements of this act are 19
fully enforceable and must not be considered waived or precluded by 20
compliance with this act. 21
(5) This act does not diminish an employer's obligation to 22
provide advance notice to and to engage in good-faith negotiations 23
with a labor organization that represents any portion of the 24
employer's employees before the employer implements an electronic 25
monitoring tool or automated decisions tool. 26
Sec. 19. The department of labor and economic opportunity 27
shall promulgate rules to implement this act under the 28
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 29
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24.328. 1