Compliance

Employment decision

Any decision about recruitment, hiring, employment terms, or conditions.

How the laws define this

Regulators consistently treat hiring selections and promotions as the fundamental core of an employment decision, capturing actions that alter a worker's status or opportunities. The most critical point of divergence is whether the concept is confined to key hiring checkpoints or covers the ongoing employment relationship. New York City Local Law 144 takes a targeted approach, limiting coverage to screening during hiring or promotion, while explicitly excluding early activities like scanning resume banks, candidate outreach, or inviting applications without a specific position. In contrast, Illinois HB 3773, the Workplace Fairness Bill, and House Bill No. 9448 establish a much broader scope that spans the full workplace lifecycle. These three instruments explicitly include ongoing post-hire determinations, such as training selection, performance evaluations and appraisals, compensation, work assignments, discipline, and dismissals or discharge.

Synthesised from the 4 statutory definitions below. Each one is quoted in full, with its source.

How jurisdictions differ

What is distinctive in each definition, binding law in force first. Showing 3 of the 4 instruments that define this term; all are listed under Definitions below.

Jurisdiction	Instrument	Status	What is distinctive
Illinois, United States	Illinois HB 3773 — Amendment to Human Rights Act (AI in Employment)	In Force	Expands to include promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, compensation, benefits, and explicitly references statutory terms and conditions or privileges of employment.
Singapore	Workplace Fairness Bill	Adopted	Limits to hiring, appraisal, training, promotions, and dismissals, framing them as actions affecting employment prospects or conditions under the Act.
Philippines	House Bill No. 9448 (Protection of Labor Against Artificial Intelligence Automation Act)	Under Review	Adds performance evaluations and ratings, compensation adjustments, work assignments, and emphasizes any determinations significantly affecting employment conditions.

What it triggers

In Illinois, United States, employers are prohibited from using discriminatory artificial intelligence systems in these decisions under Illinois HB 3773.source
In Singapore, these decisions fall under protections against workplace discrimination in the Workplace Fairness Bill.source
In the Philippines, employers would be restricted from making sole automated decisions of this kind under House Bill No. 9448.source

Definitions (4)

Any decision regarding recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, compensation, benefits, terms and conditions of employment, or any other term, condition, or privilege of employment as defined in the statute.

Illinois HB 3773 — Amendment to Human Rights Act (AI in Employment)Definition 1 of 4

A broad concept covering screening at any point in the hiring or promotion process where an AEDT is used to assess candidates or employees; it excludes AEDTs used solely for scanning resume banks, conducting outreach to potential candidates, or inviting applications when no specific position has been applied for.

New York City Local Law 144 - Automated Employment Decision ToolsDefinition 2 of 4

A defined term covering decisions relating to hiring, appraisal, training, promotions and dismissals — i.e., actions by an employer that affect an individual's employment prospects or conditions under the Act.

Workplace Fairness Bill (Workplace Fairness legislation passed in Parliament)Definition 3 of 4

Determinative actions affecting a worker's employment status or opportunities, including hiring selections, promotions and advancement determinations, performance evaluations and ratings, disciplinary actions, terminations or dismissals, compensation adjustments, work assignments, and any other determinations significantly affecting workers' employment conditions.

House Bill No. 9448 (Protection of Labor Against Artificial Intelligence Automation Act)Definition 4 of 4

Not to be confused with

AI-assisted employment decision

An AI-assisted employment decision requires meaningful AI contribution to the outcome, while employment decision covers any such decision regardless of AI involvement.

Critical decision

Critical decision applies more broadly to decisions with legal, material, or significant effects like housing, whereas employment decision is specific to employment contexts.

Questions and answers

What employment decisions does Illinois law regulate with AI?

Illinois HB 3773 covers decisions regarding recruitment, hiring, promotion, renewal, training selection, discharge, discipline, tenure, compensation, benefits, and other terms or privileges of employment. It prohibits discriminatory AI use and mandates notice.

Does using AI for employee appraisals trigger Singapore's Workplace Fairness Bill?

Yes, appraisals are included as they relate to employment prospects or conditions. The bill prohibits discrimination including bias based on age.

What Philippine bill limits AI in performance evaluations?

House Bill No. 9448 under review includes performance evaluations and ratings as determinative actions affecting employment. It would restrict sole automated decisions and require AI governance policies.