California’s No Robo Bosses Act: Regulating AI in Employment Decisions

“No Robo Bosses Act” Proposed in California

A new bill in California, known as the No Robo Bosses Act, has been proposed to limit and regulate the use of artificial intelligence (AI) decision-making in employment contexts. This bill, identified as SB 7, aims to address the growing concern over the reliance on automated systems in critical areas such as hiring, promotions, disciplinary actions, and terminations.

Definition of Automated Decision Systems

The act applies a broad definition of an automated decision system (ADS). According to the proposal, an ADS is defined as any computational process derived from machine learning, statistical modeling, data analytics, or AI that results in simplified outputs like scores, classifications, or recommendations. These outputs are used to assist or replace human decision-making, significantly impacting individuals in the workforce.

Key Provisions of SB 7

SB 7 encompasses several critical provisions designed to enhance transparency and fairness in the usage of ADS:

  1. Employers must provide a plain-language, standalone notice to employees, contractors, and applicants about the use of ADS in employment-related decisions at least 30 days prior to the introduction of the system.
  2. Employers are required to maintain a list of all ADS in use and include this list in the notice provided to employees, contractors, and applicants.
  3. The act prohibits employers from relying primarily on ADS for hiring, promotion, discipline, or termination decisions.
  4. Employers cannot use ADS that prevent compliance with existing laws or regulations, infer a protected status, conduct predictive behavior analysis, or take action against workers for exercising their legal rights.
  5. Workers will have the right to access the data collected by ADS and correct any errors.
  6. Workers can appeal employment-related decisions made by ADS, necessitating a human reviewer for such cases.
  7. The bill establishes enforcement measures against any discharges, discrimination, or retaliation against workers for exercising rights granted under SB 7.

Complementary Regulations by the California Civil Rights Council

In conjunction with SB 7, the California Civil Rights Council has proposed regulations aimed at protecting employees from discrimination, harassment, and retaliation resulting from the use of ADS by employers. These regulations identify various tools and assessments, such as predictive assessments measuring skills or personality traits and resume screening tools, which may inadvertently discriminate against certain employees or applicants based on protected characteristics.

The proposed rule and SB 7 are intended to work in tandem, enhancing the legal framework surrounding the use of ADS in employment if both are passed through the legislative process.

Current Status and Future Implications

As of now, the No Robo Bosses Act is in its early stages, with its first committee hearing scheduled for April 9, 2025. The potential for the bill to evolve before it becomes law remains uncertain. However, due to its broad implications and the likelihood of similar legislation being adopted in other states, SB 7 warrants close attention from stakeholders in the labor and technology sectors.

In summary, the No Robo Bosses Act represents a significant step towards regulating the intersection of artificial intelligence and employment practices, aiming to protect workers’ rights and ensure fairness in decision-making processes within organizations.

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