Employers increasingly rely on automated tools to help make decisions concerning hiring, promotion, discipline, and termination. In response, state legislatures and agencies have begun to regulate uses of these technologies, often referred to as automated decision-making technology (“ADMT”). These laws generally require entities that deploy ADMT in the employment context to, among other requirements, notify affected individuals, disclose how ADMT factors into decisions, and provide rights to appeal or request human review.

This remains a fast-moving area and a hot topic for legislative and regulatory focus, with several states enacting laws this year and additional bills pending. Below, we summarize the key legislative and regulatory ADMT developments that apply in the employment context.