An Act amending the act of October 27, 1955 (P.L.744, No.222), known as the Pennsylvania Human Relations Act, further providing for definitions; providing for use of automated employment decision tool; and further providing for civil penalties.

PRINTER'S NO. 602
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 594
Session of
2025
INTRODUCED BY NEILSON, BRENNAN, CONKLIN, SANCHEZ, PIELLI, HILL-
EVANS, OTTEN AND GREEN, FEBRUARY 12, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, FEBRUARY 12, 2025
AN ACT
Amending the act of October 27, 1955 (P.L.744, No.222), entitled
"An act prohibiting certain practices of discrimination
because of race, color, religious creed, ancestry, age or
national origin by employers, employment agencies, labor
organizations and others as herein defined; creating the
Pennsylvania Human Relations Commission in the Governor's
Office; defining its functions, powers and duties; providing
for procedure and enforcement; providing for formulation of
an educational program to prevent prejudice; providing for
judicial review and enforcement and imposing penalties,"
further providing for definitions; providing for use of
automated employment decision tool; and further providing for
civil penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 4 of the act of October 27, 1955
(P.L.744, No.222), known as the Pennsylvania Human Relations
Act, is amended by adding clauses to read:
Section 4. Definitions.--As used in this act unless a
different meaning clearly appears from the context:
* * *
(bb) The term "automated employment decision tool" means any
system the function of which is governed by statistical theory,
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or systems the parameters of which are defined by systems,
including inferential methodologies, linear regression, neural
networks, decision trees, random forests and other learning
algorithms, which automatically filter individuals or
prospective individuals for employment or for any term,
condition or privilege of employment in a way that establishes a
preferred individual or individuals. The term does not include a
tool that does not automate, support, substantially assist or
replace discretionary decision-making processes and that does
not materially impact natural persons, including, but not
limited to, a junk email filter, firewall, antivirus software,
calculator, spreadsheet, database, data set or other compilation
of data.
(cc) The term "bias audit" means an impartial evaluation by
an independent auditor, including, but not limited to, testing
of an automated employment decision tool to assess the tool's
disparate impact on individuals protected against discrimination
under the provisions of this act.
(dd) The term "employment decision" means to screen
individuals for employment or promotion or to otherwise help to
decide compensation or any other terms, conditions or privileges
of employment in this Commonwealth.
Section 2. The act is amended by adding a section to read:
Section 5.4. Use of Automated Employment Decision Tool.--(a)
(1) An employer or employment agency that uses an automated
employment decision tool to make or assist in making an
employment decision shall:
(i) Notify each individual at least ten days prior to their
interview that an automated employment decision tool may be used
to make or assist in making an employment decision.
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(ii) Provide each individual with information at least ten
days prior to their interview explaining how the automated
employment decision tool works and what general types of
characteristics it uses to evaluate individuals for an
employment decision.
(iii) Obtain, prior to the interview, the individual's
consent to use an automated employment decision tool to make or
assist in making an employment decision.
(2) An employer or employment agency may not use an
automated employment decision tool to evaluate individuals who
have not consented to the use of an automated employment
decision tool.
(b) An automated employment decision tool shall not be used
to make or assist in making an employment decision unless the
automated employment decision tool has been the subject of a
bias audit conducted no more than one year prior to the use of
the tool and a summary of the results of the most recent bias
audit has been made available on the employer's or employment
agency's publicly accessible Internet website.
Section 3. Section 9.3 of the act is amended to read:
Section 9.3. Civil Penalties.--(a) The Commission shall
have the power to adopt a schedule of civil penalties for
violation of section 5(h)(5) by the advertiser and the publisher
in instances where the complainant does not take action to
secure housing accommodations or financing and is not denied
housing accommodations or financing based on the alleged
discriminatory language in the advertisement. The schedule of
penalties, guidelines for their imposition and procedures for
appeal shall be published in the Pennsylvania Bulletin, provided
that the Commission shall, within two (2) years of such
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publication, promulgate a regulation setting forth the schedule
of penalties, guidelines and procedures. Any such penalty shall
not exceed the sum of five hundred dollars ($500.00). Duly
authorized agents of the Commission shall have the power and
authority to issue citations and impose penalties for any such
violations. Any such penalty imposed may be appealed to the
Commission pursuant to regulations promulgated under this act.
[All proceedings shall be conducted in accordance with the
provisions of 2 Pa.C.S. (relating to administrative law and
procedure).]
(b) The Commission shall have the power to adopt a schedule
of civil penalties for violation of section 5.4 by an employer
or employment agency. The schedule of penalties, guidelines for
their imposition and procedures for appeal shall be transmitted
to the Legislative Reference Bureau for publication in the next
available issue of the Pennsylvania Bulletin, provided that the
Commission shall, within two years of such publication,
promulgate a regulation setting forth the schedule of penalties,
guidelines and procedures. Any such penalty shall not exceed the
sum of five hundred dollars ($500.00) for a first violation and
not less than five hundred dollars ($500.00) nor more than one
thousand five hundred dollars ($1,500.00) for each subsequent
violation. Duly authorized agents of the Commission shall have
the power and authority to issue citations and impose penalties
for any such violations. Any such penalty imposed may be
appealed to the Commission pursuant to regulations promulgated
under this act.
(c) All proceedings under this section shall be conducted in
accordance with the provisions of 2 Pa.C.S. (relating to
administrative law and procedure).
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Section 4. This act shall take effect in 60 days.
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