HB 1421
Ban on employer use of automated decision systems.
Creates new compliance requirements or restricts common AI uses. Action needed.
TL;DR
Indiana House Bill 1421 would completely ban employers from using automated decision systems (like AI hiring software, resume screening tools, or performance evaluation algorithms) to make employment decisions. The bill has just been introduced and sent to the Employment, Labor and Pensions Committee for review.
How This Might Impact Your Business
Applies to all Indiana employers regardless of size who use AI or automated systems for hiring, firing, promotions, or performance reviews
Would prohibit use of AI resume screening tools, automated video interview analysis, algorithmic performance scoring, and similar technologies
No implementation timeline specified yet since bill is in early committee stage
No penalties outlined in current version
No exemptions mentioned for specific industries or use cases
Companies using third-party HR tech platforms (like HireVue, Workday's AI features, or ADP's analytics) would need to disable automated decision features
Bill text not yet publicly available, limiting analysis of specific requirements
What Should You Do
Inventory all HR and recruiting software your company uses in Indiana operations to identify automated decision-making features
Contact the Indiana Chamber of Commerce or your industry association to coordinate response to this bill
Schedule review with HR leadership of current automated tools used in hiring, performance management, and termination decisions
Monitor committee hearings and amendments (bill just referred to committee, hearing dates not yet scheduled)
Prepare cost analysis of reverting to manual processes if your Indiana operations rely heavily on AI screening
Who It Affects
Status Timeline
committee
First reading: referred to Committee on Employment, Labor and Pensions
January 8, 2026
committee
First reading: referred to Committee on Employment, Labor and Pensions
January 8, 2026
AI-generated analysis for informational purposes only. Not legal advice. Always consult a qualified attorney for legal guidance.
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