Under newly introduced legislation, large employers would be required to conduct impact assessments of automated employment decisions and submit such reports to the FTC, which would then publish a repository of information on the automated systems companies reported.
Unlike the 2019 version of the bill, the Algorithmic Accountability Act of 2022 focuses on the HR context, in addition to other significant areas, such as health care. Automated decisions that have an impact on access to, terms, or availability of employment or workers' management would be covered. The bill is sponsored by Senator Ron Wyden (D-OR), Senator Cory Booker (D-NJ), and Representative Yvette Clarke (D-NY).
In addition to submitting impact assessments, large employers would be required to:
- Submit reports to the FTC of any new algorithmic technology prior to deployment and annual reports to the FTC of any ongoing impact assessments;
- Maintain for five years documentation of any impact assessments performed; and
- Attempt to eliminate or mitigate, in a timely manner, any impact made by algorithmic technology that demonstrates a likely material negative impact that has legal or similarly significant effects on an individual’s life.
Outlook: The 50-page measure dwarfs its 15-page predecessor, with far more detail and a focus on AI systems used in making “critical decisions,” such as employment, rather than on “high risk” AI systems. This change in focus decreases the opportunities for loopholes, the bill’s supporters claim. However, it could prove to be a point of contention. We can expect more activity in this space this year.
