Senate Bill S4075 would restrict workplace surveillance, require independent reviews of certain AI systems and give workers new rights to challenge automated employment decisions.

TRENTON, NJ — New Jersey lawmakers are considering a sweeping proposal that would place new restrictions on how employers and government agencies use artificial intelligence, workplace surveillance, biometric information and automated systems to make decisions about workers and public benefits.

Senate Bill S4075 would regulate everything from AI-assisted hiring and firing to keystroke monitoring, geolocation tracking, facial recognition and algorithms used to determine whether someone receives government services.

The legislation was introduced May 4 by Democratic Sens. Andrew Zwicker and Shirley Turner and remains before the Senate Labor Committee as of Sept. 22. An identical measure, A4981, is pending in the Assembly Science, Innovation and Technology Committee.

The bill describes its purpose as establishing safeguards around AI and automated technologies used in workplaces and public services.

Employers Could Face New Limits on Tracking Workers

Some of the proposal’s most immediate effects would be felt by employers already using electronic tools to monitor employees.

S4075 defines an electronic monitoring tool broadly, covering technology that monitors computers, phones and communications as well as biometric systems, video and audio surveillance, geolocation tracking and information obtained from third-party data brokers.

Under the bill, employers could not electronically monitor workers in bathrooms, locker rooms, break rooms, wellness rooms, lactation areas and other designated private spaces.

Employers would also generally be barred from monitoring employees while they are off duty, on leave, eating a meal or taking a rest break.

One provision would prohibit an employer from forcing a worker to install location-tracking or other monitoring software on a personal cellphone, computer, vehicle, tablet or wearable device. Employees would have an explicit right to refuse without retaliation.

The proposal goes even further by prohibiting employers from requiring employees to disclose passwords to personal devices or social-media accounts or requiring a tracking device to be implanted in an employee’s body.

The complete introduced version of Senate Bill S4075 is available through the New Jersey Legislature.

AI Could Not Be the Sole Basis for Firing or Other Decisions

The legislation would also restrict employers from allowing an algorithm to make consequential employment decisions on its own.

Under S4075, employers and public agencies could not base decisions affecting employment or public benefits exclusively or determinatively on an automated employment system, automated benefits system or electronic surveillance data.

Instead, the bill requires “meaningful human oversight.”

A human reviewer would have to possess enough training and authority to identify errors, bias or inaccuracies and would have the ability to revise or reject an automated system’s output.

That could apply to hiring, firing, discipline, promotions, performance evaluations and other employment decisions.

The bill would similarly cover automated systems used by government agencies to determine eligibility for public benefits or services.

Keystroke and Mouse Tracking Targeted

S4075 specifically addresses workplace productivity software.

An employer could not take adverse employment action against a worker solely because of information produced by continuous incremental time-tracking systems such as keystroke loggers, idle-time trackers or mouse-movement monitors.

Employers would still be able to use approved monitoring systems for legitimate purposes, including employee performance assessments, workplace safety, legal compliance, quality control and administering wages and benefits.

But the monitoring would have to be limited to what is necessary for those purposes and use the least invasive method reasonably available under the bill.

The proposal arrives as New Jersey lawmakers consider several measures addressing artificial intelligence, including separate legislation requiring disclosure when people interact with certain AI companions and proposals governing biometric surveillance.

Shore News Network recently reported that another measure would require businesses to warn customers when facial recognition and other biometric surveillance systems are being used.

Independent AI Audits Would Be Required

Before many covered AI or employee-monitoring systems could be deployed, employers would have to obtain an impact assessment.

For private-sector systems, the review would generally be conducted by an independent auditor. Systems involving public employees would be reviewed through the New Jersey Department of Labor and Workforce Development.

The assessment would examine potential effects on privacy, workplace rights, health and safety, discrimination and employment.

Vendors would also have to disclose technical information about their systems, including how they were designed, what data was used to train them and their accuracy and error rates.

The reports and summaries would be submitted for inclusion in a public registry maintained by the New Jersey Department of Labor and Workforce Development.

Workers Would Get 60 Days’ Notice

Employers would generally have to give affected workers and their unions at least 60 days’ written notice before implementing covered AI systems or electronic surveillance.

The notice would have to explain what technology is being introduced, what information will be collected, how the information will be used and what decisions could be affected.

Employees would also have rights to inspect information being maintained about them and seek corrections if they believe records are inaccurate.

The legislation would require similar notice when an employer substantially changes how an existing automated system is being used.

Workers Could Challenge AI Decisions

Employees facing an adverse decision involving covered AI technology would gain a formal challenge process.

In many cases, employers would have to provide notice at least 10 days before an adverse employment decision takes effect and explain the reasoning behind it.

Workers could request access to relevant data and information used to reach the decision and challenge inaccurate, incomplete or biased information.

A human reviewer with authority to reverse or modify the decision would then be required to evaluate the challenge.

Applicants rejected for jobs or public benefits would also receive disclosure requirements under the proposal.

Public-Sector AI Could Become a Bargaining Issue

S4075 contains additional provisions specifically affecting state and local government workers.

A public employer’s decision to implement covered AI or automation expected to significantly reduce employment would become a mandatory subject of collective bargaining.

Public agencies generally could not enter such an automated-services agreement during an existing labor contract. Before moving forward after a contract expires, agencies would have to provide notice and negotiate over the effects on workers.

Public employees displaced by automation would receive severance and health benefits for at least one year under the proposal.

Workers with five or more years of service would receive at least two years of severance and health coverage, along with seniority and recall rights.

Violations Could Lead to Lawsuits and Penalties

The bill contains both administrative and civil enforcement provisions.

Employees, applicants and public-benefit recipients adversely affected by violations could eventually bring civil actions after completing applicable internal challenge procedures.

Courts could order reinstatement, lost wages, restored benefits and attorney fees. Certain violations could also result in civil fines, while knowing and willful violations are subject to additional penalties under the proposal.

S4075 has not passed either house of the Legislature and is not currently law.

If ultimately enacted, the measure would take effect 18 months after enactment.

The Senate version’s latest listed legislative action remains its May 4 introduction and referral to the Senate Labor Committee.

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