TX SB2991

Prohibits employers from using automated employment decision tools (AI, algorithms, machine learning) that factor in an applicant's protected class status or residential zip code when assessing fitness for recruitment, hiring, promotion, or other employment decisions

Requires employers to notify applicants that an automated tool may be used, provide information describing how the tool evaluates applicant characteristics, and obtain written consent before using the tool

Restricts sharing of automated assessment results to only those persons necessary to ensure the tool correctly processes applicant data

Mandates employers destroy all hard copies and electronic files of automated assessments within 30 days of use, and instruct any third parties who received the assessment to do the same

Allows applicants to file complaints with the Texas Workforce Commission, which may assess administrative penalties of $2,500 to $7,500 per violation; effective September 1, 2025