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Bill

A 3854

Relates to taxation of state owned land

2025 Regular Session Introduced by Joe DeStefano and 4 co-sponsors

NJ A3854 requires independent bias audits, notice, and disclosure for AEDTs used in hiring, boosting transparency and protecting candidates.

REPORTED REFERRED TO WAYS AND MEANS
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Bill Summary · A 3854

Summary — A3854 (Assembly Committee Substitute, as reported May 16, 2024)

Status: Introduced Feb 22, 2024; Assembly Committee Substitute reported favorably May 16, 2024; later reported and referred to Ways & Means (Apr 2, 2025).
Note: bill text provided addresses automated employment decision tools (AEDTs). (The initial bill title metadata about “taxation of state owned land” appears incorrect.)

Main purpose

Require transparency, independent bias auditing, and notice/recourse rules for the sale, development, deployment, and use of automated employment decision tools (AEDTs) used to screen candidates or make employment-related recommendations or decisions — with the goal of reducing discrimination and ensuring accountability.

Key definitions (selected)

  • Automated employment decision tool (AEDT): machine-based systems (e.g., regression, neural networks, decision trees, other learning algorithms) that make predictions/recommendations/decisions affecting recruitment, hiring, promotion, compensation, or other employment terms.
  • Bias audit: impartial evaluation by an independent auditor to identify biases, discriminatory outcomes, risks, and provide actionable mitigation recommendations.
  • Covered individual: job candidate or current employee assessed by an AEDT.
  • Independent auditor, impact ratio, selection rate, scoring rate: technical measures and standards used in audits (defined in the bill).

Major provisions

  • Vendor/developer obligations

    • Prohibits selling, developing, deploying, using, or offering an AEDT in New Jersey unless the AEDT has undergone a bias audit within the past year.
    • Sales must include, at no additional cost, an annual bias audit service and a written plan to monitor implementation of audit recommendations.
    • AEDTs must carry notice stating they are subject to the bill’s requirements.
    • Developers must implement audit recommendations and issue a press release describing implementation.

  • Employer / employment agency obligations

    • Employers who use AEDTs must post a summary of the most recent bias audit on their employment webpage.
    • Must notify each covered individual at least 10 business days before use that an AEDT will be used. Acceptable notice methods include posting on the employer’s employment webpage, job postings, or U.S./electronic mail.
    • Within 30 days after use, employers must notify each covered individual:
    • That an AEDT was used;
    • Which job qualifications/characteristics the AEDT assessed;
    • Sources of data used, employer data retention policy, the AEDT’s name and vendor;
    • If an adverse action resulted, provide disclosures sufficient to enable the individual to contest the employment decision.
    • Employers/employment agencies must make certain tool-related information publicly available on their employment website (details in bill).

  • Auditing and auditor independence

    • Bias audits must be conducted by independent auditors (criteria for independence are set out — e.g., no involvement in development, no current financial interest).

Enforcement and penalties

  • The bill establishes civil penalties for violations and assigns enforcement responsibilities to the Department of Labor and Workforce Development (Commissioner), with rulemaking authority to implement the law.
  • The introduced version specifies per-violation fines (e.g., $500 first violation, higher subsequent penalties) and daily accrual for continuing violations; the committee substitute retains civil penalties though some text is truncated in provided materials. Penalties are payable to the State Treasurer and may be collected administratively.

Who is affected

  • AEDT vendors and developers distributing tools in New Jersey.
  • All employers in the State (private employers, State and local government entities, school districts).
  • Employment agencies.
  • Job candidates and employees evaluated by AEDTs.

Timeline / implementation

  • The introduced version sets the effective date as the first day of the third month after enactment; the Commissioner may take anticipatory administrative actions before that date. Committee substitute is dated May 16, 2024 and remains under legislative consideration (most recently referred to Ways & Means, Apr 2, 2025).

Purpose and impact

  • A3854 aims to increase transparency and accountability around automated hiring tools, reduce disparate or discriminatory impacts, give candidates and employees notice and avenues to contest automated decisions, and require regular independent bias auditing of AEDTs sold or used in New Jersey. Implementation will require vendors to provide ongoing audit services and employers to maintain disclosures and processes to comply with notice, transparency, and remediation requirements.

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

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