Creates standards for independent bias auditing of automated employment decision tools.

This New Jersey bill requires employers and employment agencies to conduct annual independent audits of automated tools used for hiring, promotion, or employment decisions to identify potential bias. The audits must measure the tool’s impact on protected categories (like race, gender, age, and disability) by calculating selection rates and impact ratios, and provide actionable recommendations to address disparities. Employers cannot use these tools if they haven’t had a recent audit, and independent auditors must have no conflicts of interest with the employer or tool developer. The law directly affects job seekers and employees evaluated by such tools, aiming to ensure fairer employment practices.