For purposes of this Act:
(1)
Adverse work action— The term adverse work action, with respect to a covered individual, means a change by the employer of the covered individual in the compensation, terms, conditions, or privileges of the job of the covered individual that puts the covered individual in a materially adverse position than prior to the change, including a termination, reduction in benefits, disciplinary action, demotion, transfer, imposition of a work schedule more burdensome to the covered individual, reduction of scheduled hours, adjustment in the ability for a promotion, or other modifications to the compensation, terms, conditions, or privileges of the job of the covered individual.
(2)
Applicant— The term applicant, with respect to an employer, means an individual who applies, or applied, to be employed by, or otherwise perform work for remuneration for, the employer.
(3)
Automated decision system—
(A)
In general— The term automated decision system means any system, software, or process (including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques and excluding passive computing infrastructure) that uses computation to produce a prediction, score, ranking, recommendation, decision, evaluation, metric, conclusion, inference, or profile.
(B)
Passive computing infrastructure— For purposes of this paragraph, the term passive computing infrastructure means any intermediary technology that does not influence or determine the outcome of a decision, make or aid in a decision (including through evaluations, metrics, or scoring), inform policy implementation, or collect data or observations, including web hosting, domain registration, networking, caching, data storage, or cybersecurity.
(4)
Covered individual— The term covered individual, with respect to an employer, means an individual—
(A)
who is employed by, or otherwise performs work for remuneration for, the employer, including such an individual who is—
(i)
any individual performing work for remuneration for an employer described in clauses (i)(I) and (ii) of paragraph (9)(A);
(ii)
any individual performing work for remuneration for an entity described in clauses (i)(II) and (ii) of paragraph (9)(A);
(iii)
any individual performing work for remuneration for an employing office described in clauses (i)(III) and (ii) of paragraph (9)(A);
(iv)
any individual performing work for remuneration for an employing office described in clauses (i)(IV) and (ii) of paragraph (9)(A); or
(v)
any individual performing work for remuneration for an employing agency described in clauses (i)(V) and (ii) of paragraph (9)(A) who is not covered under clause (iv); or
(B)
who is an applicant with respect to the employer.
(5)
Developer—
(A)
In general— Except as provided in subparagraph (B), the term developer, with respect to an automated decision system that is intended or reasonably likely to be used by an employer to make a work-related decision, means any person that designs, codes, customizes, produces, or substantially modifies the automated decision system, including such a person that is the employer.
(B)
Assumption of responsibility by employer— If an employer assumes the responsibility of a person that would otherwise be a developer of an automated decision system as described in section 5(b)(2)(B), the person shall not be considered a developer for purposes of the use by the employer of the automated decision system and the employer shall be considered a developer for such purposes.
(C)
Rule of construction— Subparagraph (A) or (B) shall not be interpreted to mean that an employer may not also be a developer described in such subparagraph or that such a developer may not also be an employer.
(6)
Director— The term Director means the Director of the Fairness and Transparency Office established under section 6.
(7)
Disparate impact—
(A)
In general— The term disparate impact means an unjustified differential effect on an individual or group of individuals on the basis of an actual or perceived protected characteristic.
(B)
Unjustified differential effect— For purposes of subparagraph (A), with respect to the action, policy, or practice of an employer, a differential effect is unjustified if—
(i)
the developer or employer fails to demonstrate that such action, policy, or practice causing the differential effect is necessary to achieve a substantial, legitimate, and nondiscriminatory interest; or
(ii)
in the event the employer demonstrates such interest, an alternative action, policy, or practice could serve such interest with less differential effect.
(C)
Application to automated decision system— With respect to demonstrating that an automated decision system causes or contributes to a differential effect, the automated decision system is presumed to be not separable for analysis and may be analyzed holistically as a single action, policy, or practice, unless the developer or employer proves that the automated decision system is separable by a preponderance of the evidence.
(8)
Egregious misconduct— The term egregious misconduct, with respect to a covered individual, means deliberate or grossly negligent conduct that endangers the safety or well-being of the covered individual, co-workers of the covered individual, customers, or other persons, including discrimination against or harassment of co-workers, customers, or other persons.
(9)
Employer—
(A)
In general— The term employer means any person who is—
(i)
(I)
a covered employer who is not described in any other subclause of this clause;
(II)
an entity employing a State employee described in section 304(a) of the Government Employee Rights Act of 1991 (
42 U.S.C. 2000e–16c(a));
(III)
an employing office, as defined in section 101 of the Congressional Accountability Act of 1995 (
2 U.S.C. 1301);
(IV)
an employing office, as defined in section 411(c) of title 3, United States Code; or
(V)
an employing agency covered under subchapter V of chapter 63 of title 5, United States Code; and
(ii)
engaged in commerce (including government), or an industry or activity affecting commerce (including government).
(B)
Covered employer— In subparagraph (A), the term covered employer—
(i)
means any person engaged in commerce or in any industry or activity affecting commerce who employs, or otherwise engages for the performance of work for remuneration, 11 or more covered individuals;
(ii)
includes—
(I)
any person who acts, directly or indirectly, in the interest of a covered employer in relation to any individual performing work for remuneration for such covered employer;
(II)
any successor in interest of a covered employer;
(III)
any public agency; and
(IV)
the Government Accountability Office and the Library of Congress; and
(iii)
does not include any labor organization or worker advocacy organization (other than when a labor organization or worker advocacy organization is acting as an employer) or anyone acting in the capacity of officer or agent of such labor organization or worker advocacy organization.
(C)
Public agency— For purposes of this paragraph, a public agency shall be considered to be a person engaged in commerce or in an industry or activity affecting commerce.
(D)
Definitions— For purposes of this paragraph, the terms commerce, person, and public agency have the meanings given the terms in section 3 of the Fair Labor Standards Act of 1938 (
29 U.S.C. 203).
(10)
Government entity— The term government entity means—
(B)
a State or political subdivision thereof;
(C)
any agency, authority, or instrumentality of a State or political subdivision thereof; or
(D)
a Tribal government or political subdivision thereof.
(11)
Indian Tribe— The term Indian Tribe means any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation individually identified (including parenthetically) in the list published most recently as of the date of enactment of this Act pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (
25 U.S.C. 5131).
(12)
Labor organization— The term labor organization has the meaning given the term in section 2(5) of the National Labor Relations Act (
29 U.S.C. 152(5)), except that such term shall also
include—
(A)
any organization composed of labor organizations, such as a labor union federation or a State or municipal labor body; and
(B)
any organization which would be included in the definition for such term under such section 2(5) but for the fact that the organization represents—
(i)
individuals employed by the United States, any wholly owned Government corporation, any Federal Reserve Bank, or any State or political subdivision thereof;
(iii)
individuals employed as agricultural laborers.
(13)
Personal data— The term personal data—
(A)
means information that identifies or is linked or reasonably linkable, alone or in combination with other information, to an individual or an individual’s device; and
(B)
includes derived data and unique persistent identifiers.
(14)
Predispute arbitration agreement— The term predispute arbitration agreement means any agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement.
(15)
Predispute joint-action waiver— The term predispute joint-action waiver means an agreement, whether or not part of a predispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not yet arisen at the time of the making of the agreement.
(16)
Protected characteristic— The term protected characteristic means any of the following actual or perceived traits of an individual or group of individuals:
(D)
National origin, nationality, or immigration status.
(F)
Sex (including a sex stereotype, pregnancy, childbirth, or a related medical condition, sexual orientation or gender identity, and sex characteristics, including intersex traits).
(H)
Limited English proficiency.
(I)
Biometric information.
(J)
Familial or marital status.
(L)
Income level (not including the ability to pay for a specific good or service being offered).
(O)
Genetic information or medical conditions.
(P)
Any other classification protected by Federal law.
(17)
Secretary— The term Secretary means the Secretary of Labor.
(18)
State— The term State means each of the several States of the United States, the District of Columbia, or any territory or possession of the United States.
(19)
State attorney general— The term State attorney general means—
(A)
with respect to a State, the attorney general or chief law enforcement officer of the State, or another official or agency designated by the State to bring civil actions on behalf of the State or the residents of the State; and
(B)
with respect to a Tribal government, the attorney general or chief law enforcement officer of the Tribal government, or another official or agency designated by the Tribal government to bring civil actions on behalf of the Tribal government or the Indian Tribe of the Tribal government.
(20)
State privacy regulator— The term State privacy regulator means—
(A)
the chief consumer protection officer of a State; or
(B)
a State consumer protection agency with expertise in data protection, including the California Privacy Protection Agency.
(21)
Tribal government— The term Tribal government means the recognized governing body of an Indian Tribe.
(22)
Work-related decision— The term work-related decision includes a decision by an employer with regard to—
(A)
hiring or engaging a covered individual (including any decision with regard to recruiting, screening, interviewing, reviewing, or selecting an applicant);
(B)
firing, retaining, taking a disciplinary action against, demoting, deactivating, or reassigning duties of a covered individual; or
(C)
any other term, condition, or privilege of employment or other work of the covered individual, such as relating to wages, wage setting, work hours, scheduling, attendance requirements, workload, performance standards, assignment of work, access to work and training opportunities, productivity requirements, promotion, workplace health and safety, health care or long-term care coverage, or other benefits.