California’s New AI Law “No Robo Bosses” Act Will Have Major Implications for How Workplace Decisions Can Be Made
Companies increasingly rely on artificial intelligence (AI) to increase efficiency. Some companies are using AI systems to make key decisions, including hiring, firing, and promoting workers. State Senator Jerry McNerney, D-Pleasanton introduced the “No Robo Bosses” Act (SB 7) with the stated goal of helping to prevent abuse of AI systems by requiring human oversight. The bill is set to take effect on July 1, 2025. The California Fair Employment and Housing Act and Civil Rights Department are set to enforce the law through civil actions. There are many portions of the law that employers and employees should understand.
Restrictions on Automated Decision-Making in the Workplace
The law puts a number of restrictions on how automated decision-making systems (ADS) may be used in the workplace.
- Employers are not permitted to use automated systems when it comes to key employment decisions without human oversight. This includes decisions related to hiring, firing, promoting, and disciplining workers.
- Employers are required to inform their employees if any AI or algorithm is being used to assess their workplace performance. They must let their employees know how those systems are used in decisions that may impact their jobs.
- Employers are required to ensure that human agents are allowed to assess and override decisions that are made by AI systems.
To be clear, the law does not ban the use of AI systems to evaluate performance and make recommendations. But any decisions cannot be automated without human oversight and potential intervention.
Employee Rights Guaranteed Under SB 7
Employees have a number of rights guaranteed by the new law.
- Transparency: Employees have a right to know when their data is being collected and how it could potentially be used in automated employment decisions.
- Review: Employees have a right to request human intervention and review of any decisions made by automated decision-making systems.
- Retaliation: Employees have a right to be free from retaliation if they choose to exercise any of their rights guaranteed under SB 7.
- Privacy: Automated decision-making systems are not allowed to obtain or infer key details related to a worker’s private identity protected by law. This includes their “immigration status; veteran status; ancestral history; religious or political beliefs; health or reproductive status, history, or plan; emotional or psychological state; neural data; sexual or gender orientation’ disability; criminal record; credit history.”
According to the bill’s author, there are many examples of ADS mistakenly terminating people from their jobs. These protections will hopefully help curb such mistakes and other undesirable outcomes.
Compliance Obligations for Employers Using ADS
Employers must take certain measures in order to comply with the new law.
- Employers are required to conduct an assessment of how any ADS tools could impact their workforce.
- Employers must provide disclosures related to the use of ADS tools for all decisions related to employment.
- Employers must maintain records for how AI systems are used and scrutinized with respect to their potential for bias or discrimination.
Workers are protected by a number of laws. But these laws are at risk of being unintentionally subverted through systems designed for maximal efficiency.
Getting Legal Help for Workplace Discrimination
The rise of AI has great potential to improve the lives of ordinary people and make workers substantially more productive. However, there are also many potential drawbacks to completely unregulated AI systems. This is particularly true when these systems operate with zero accountability or transparency. SB 7 will hopefully be an important step towards protecting the rights of workers from unlawful employment practices.
Have you or someone that you care about been discriminated against or wrongfully terminated by ADS tools? You may have legal recourse. Our team of highly experienced employment lawyers at The Labor Champ can help. We are committed to helping workers understand their rights and holding employers accountable for their illegal conduct. Whether you just have legal questions or would like to know how an attorney can help with your particular situation, we are here to serve your needs. You can reach out to our firm anytime at 949-727-9300.
