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Bill

SB 2991

Relating to the use of an automated employment decision tool by an employer to assess a job applicant's fitness for a position; imposing an administrative penalty.

89th Legislature (2025)

Texas bill regulates employer use of AI hiring tools, requiring transparency and establishing penalties for algorithmic discrimination in job screening.

Referred to Business & Commerce
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Bill Summary · SB 2991

Legislative bill overview

SB 2991 would regulate how employers in Texas use automated employment decision tools (such as AI screening software) to evaluate job applicants. The bill appears to establish requirements for transparency and accuracy in these automated systems and creates administrative penalties for violations of these requirements.

Why is this important

Automated hiring tools increasingly screen thousands of applications, but they can perpetuate bias, discriminate against protected classes, or use opaque algorithms that applicants cannot challenge. This bill addresses growing concerns about fairness in hiring while businesses argue such tools improve efficiency and reduce human bias—creating tension between innovation and worker protection.

Potential points of contention

  • Definition and scope: What qualifies as an "automated employment decision tool"? Does it cover resume screening, skill assessments, video analysis, or only final hiring decisions?
  • Administrative burden: What specific requirements will employers need to meet (disclosure to applicants, validation studies, opt-out options), and will compliance costs disadvantage small businesses?
  • Penalty structure: How high will administrative penalties be, and who enforces them? Will this create new litigation risk or create a competitive advantage for large companies with compliance infrastructure?

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

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