A new bill in California, SB 7, proposed by State Senator Jerry McNerney, seeks to limit and regulate the use of artificial intelligence (AI) decision making in hiring, promotion, discipline, or termination decisions. Also known as the “No Robo Bosses Act,” SB 7 applies a broad definition of “automated decision system,” or “ADS,” as: any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decision making and materially impacts natural persons. An automated decision system does not include a spam email filter, firewall, antivirus, software, identity and access management tools, calculator, database, dataset, or other compilation of data.
Specifically, SB 7 would:
- Require employers to provide a plain-language, standalone notice to employees, contractors, and applicants that the employer is using ADS in employment-related decisions at least 30 days before the introduction of the ADS (or by February 1, 2026, if the ADS is already in use).
- Require employers to maintain a list of all ADS in use and include that list in the notice to employees, contractors, and applicants.
- Prohibit employers from relying primarily on ADS for hiring, promotion, discipline, or termination decisions.
- Prohibit employers from using ADS that prevents compliance with or violates the law or regulations, obtains or infers a protected status, conducts predictive behavior analysis, predicts or takes action against a worker for exercising legal rights, or uses individualized worker data to inform compensation.
- Allow workers to access the data collected and correct errors.
- Allow workers to appeal an employment-related decision for which ADS was used, and require an employer to have a human reviewer.
- Create enforcement provisions against discharging, discriminating, or retaliating against workers for exercising their rights under SB 7.
Similar to SB 7, the California Civil Rights Council has proposed regulations that would protect employees from discrimination, harassment, and retaliation related to an employer’s use of ADS. The Civil Rights Council identifies several examples, such as predictive assessments that measure skills or personality trainings and tools that screen resumes or direct advertising, that may discriminate against employees, contractors, or applicants based on a protected class. The proposed rule and SB 7 would work in tandem, if both are passed through their respective government bodies.
The bill is still in the beginning stages. It is set for its first committee hearing — Senate Labor, Public employment, and Retirement Committee — on April 9, 2025. How the bill may transform before (and if) it becomes law is still unknown, but because of the potential reach of this bill and the possibility other states may emulate it, SB 7 is one to watch.
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