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HB 1421

Ban on employer use of automated decision systems.

2026 Regular Session Introduced by Earl Harris

HB 1421 requires Indiana employers to obtain human approval before using automated systems to make employment decisions, aiming to prevent algorithmic discrimination in hiring and management.

Authored by Representative Harris
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Bill Summary · HB 1421

Legislative bill overview

HB 1421 would prohibit Indiana employers from using automated decision systems (algorithms, AI, or other computational tools) to make employment decisions without human review and approval. The bill appears designed to protect workers from opaque algorithmic decision-making in hiring, promotion, scheduling, discipline, and termination processes.

Why is this important

Automated hiring and management systems are increasingly used by employers to screen applicants, predict worker performance, and optimize scheduling—decisions that directly affect people's livelihoods. Without transparency requirements or human oversight, these systems can perpetuate bias, produce discriminatory outcomes, and make consequential decisions based on criteria workers cannot challenge or understand.

Potential points of contention

  • Business compliance costs: Employers, especially small businesses, may argue the requirement for human review of every algorithmic decision adds significant administrative burden and expense
  • Definition and scope ambiguity: The bill's language on what constitutes an "automated decision system" is unclear—does it cover simple spreadsheet formulas, basic scheduling software, or only AI systems?
  • Competitive disadvantage: Indiana employers might claim stricter restrictions than other states put them at a competitive disadvantage for talent management efficiency

Compiled from official sources — confirm details with the bill’s official record.

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