IN HB1421

Indiana HB 1421 - Automated Decision Systems in Employment

• Prohibits employers with 11+ employees from relying exclusively on automated decision systems (AI, machine learning, algorithmic tools) for employment decisions including hiring, firing, promotions, pay, and scheduling

• Requires predeployment testing of automated systems for efficacy, compliance with federal anti-discrimination laws, and alignment with the NIST AI Risk Management Framework, plus annual independent bias testing with publicly available results

• Mandates employers provide written disclosure to workers about automated system use, including data collected, characteristics measured, and how outputs influence decisions; documentation must be provided within 7 days of any employment decision

• Requires human oversight to corroborate all automated outputs, gives workers the right to dispute system outputs and appeal decisions to a human reviewer, and allows workers to opt out of automated management entirely

• Authorizes the Indiana Department of Labor to investigate violations and allows affected workers or labor organizations to file civil lawsuits with statutory damages of $5,000-$100,000 per violation, plus actual damages up to treble, attorney's fees, and injunctive relief; effective July 1, 2026