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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Title 2, Labor Code, is amended by adding
SUBTITLE F.  PROVISIONS REGARDING JOB APPLICANT SCREENING
CHAPTER 95.  USE OF AUTOMATED EMPLOYMENT DECISION TOOL
Sec. 95.001.  DEFINITIONS.  In this chapter:
(1)  "Algorithm" means a computerized procedure
consisting of a set of steps used to accomplish a determined task.
(2)  "Applicant" means a person applying for a job
(3)  "Artificial intelligence system" means a system of
machine learning and related technologies that use data to train
statistical models for the purpose of enabling computer systems to
perform tasks normally associated with human intelligence or
perception, such as computer vision, speech or natural language
processing, and content generation.
(4)  "Automated employment decision tool" means a
computational process or software application that uses
algorithms, machine learning, statistical modeling, data
analytics, or an artificial intelligence system to assess an
applicant's fitness for a position.
(5)  "Employer" has the meaning assigned by Section
Sec. 95.002.  USE OF AUTOMATED EMPLOYMENT DECISION TOOL.
(a) An employer may not use or deploy, or authorize a third party to
use or deploy, an automated employment decision tool in violation
of this chapter or a rule adopted under this chapter.
(b)  It is a violation of this chapter for an employer to use
an automated employment decision tool that includes, as a factor in
the assessment of fitness for purposes of recruitment, hiring,
promotion, renewal of employment, selection for training or
apprenticeship, discharge, discipline, tenure, or the terms,
privileges, or conditions of employment, status in a protected
class under state or federal law, or the residential zip code of the
Sec. 95.003.  DISCLOSURE AND CONSENT REQUIRED.  An employer
may not use an automated employment decision tool in regard to an
(1)  notifies the applicant that an automated
employment decision tool may be used to assess the applicant's
(2)  provides the applicant with information
describing how the automated employment decision tool will be used
to assess the applicant's fitness for the position, including what
characteristics may be evaluated for that purpose; and
(3)  before using the automated employment decision
tool, obtains the applicant's written consent for that use.
Sec. 95.004.  SHARING OF AUTOMATED EMPLOYMENT DECISION TOOL
ASSESSMENT.  An employer may not share an assessment of an applicant
made by an automated employment decision tool authorized under this
chapter with any person other than a person whose knowledge and
skill is necessary in order to ensure the tool is correctly
processing the applicant's data.
Sec. 95.005.  DESTRUCTION OF AUTOMATED EMPLOYMENT DECISION
TOOL ASSESSMENT.  (a)  Not later than the 30th day after the date an
employer uses an automated employment decision tool to assess an
applicant's fitness for a position as authorized under this
(1)  make all reasonable efforts to destroy any hard
copy and erase any electronic data file of the assessment; and
(2)  instruct any other person with whom the employer
shared the assessment under Section 95.004 to make all reasonable
efforts to destroy any hard copy and erase any electronic data file
(b)  A person who is instructed by an employer to destroy an
assessment under Subsection (a)(2) shall, as soon as practicable,
make all reasonable efforts to destroy any hard copy and erase any
electronic data file of the assessment.
Sec. 95.006.  ENFORCEMENT; ADMINISTRATIVE PENALTY.  (a)  An
applicant who has reason to believe that an employer has violated
this chapter or a rule adopted under this chapter may file a
(b)  On receipt of a complaint under this section, the
commission shall investigate and dispose of the complaint in the
manner prescribed by Subchapter F, Chapter 21, for a complaint of an
unlawful employment practice under that chapter.
(c)  The commission shall assess an administrative penalty
in an amount that is not less than $2,500 and not more than $7,500
against an employer for each violation of this chapter or a rule
Sec. 95.007.  RULES.  The commission shall adopt rules for
the administration of this chapter.
SECTION 2.  This Act takes effect September 1, 2025.