Californias new AI law: Ban on bots used to fire employees
California signed another AI regulation into law last week, setting new limits on the tech's use in the workplace.
California has enacted a pioneering new law aimed at regulating the use of artificial intelligence in the workplace. Signed into law by Governor Gavin Newsom, SB 947 introduces stringent restrictions on the use of Automated-Decision Systems, particularly in employment-related decisions such as firing employees. This legislation, dubbed the "No Robo Bosses Act," is the first of its kind in the United States.
The law dictates that employers cannot solely rely on AI systems to decide an employee's continued employment or disciplinary actions. Any use of AI in such matters must be transparently disclosed to the employee, detailing the personal data provided to the AI model to inform the decision. Furthermore, if AI plays a principal role in a termination decision, the employer must provide a human reviewer to scrutinize the decision and offer additional corroborating evidence, such as performance evaluations, disciplinary records, and witness testimony.
Employers in California, regardless of size, are now bound by this legislation. They must ensure that any ADS used does not infringe upon state employment laws or an employee's protected status. If an ADS decision cannot be corroborated by a human, it is deemed invalid. Violations of the law could result in civil penalties imposed by the California Labor Commissioner's Office.
The bill, set to take effect on July 1, 2027, marks a significant stride in ensuring a more equitable and accountable use of AI in the realm of employment.
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