California Set to Tighten AI Use in Employment Decisions
California is set to introduce significant regulations on the use of artificial intelligence in employment decisions. Senate Bill 7 (SB 7), authored by Democrat Scott Wiener, aims to protect workers from unfair practices involving automated decision systems (ADS), such as those used by the likes of tech billionaire Bill Gates.
The bill, awaiting Governor Gavin Newsom's decision, prohibits employers from using ADS to make compensation decisions or predict workers' beliefs, personality, or other behavioral characteristics. Employers must provide detailed notices to workers about their use of an ADS, including its intended use, internal logic, data collection methods, and more, at least 30 days before introducing it.
After using an ADS, employers must provide another written notice to affected workers and allow them to appeal and access relevant data. The California Labor Commissioner will enforce SB 7, with workers also able to bring claims for violations and seek civil penalties.
While SB 7 seeks to increase transparency and protect workers, it also creates duplicative and sometimes contradictory requirements with the California Privacy Protection Agency's rules under the CCPA. The bill's transparency requirements may also reveal confidential information, such as trade secrets and personal information of other employees. Governor Newsom's decision on this AI-related bill is eagerly awaited.
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