California continues to push legislation that would significantly regulate employers’ use of artificial intelligence in workplace decision-making. Senate Bill 947 (“SB 947”), commonly known as the “No Robo Bosses Act,” seeks to impose new restrictions on the use of automated decision systems (“ADS”) in employment settings.
While SB 947 makes its way through the Legislature, employers should pay close attention as it provides valuable insight into where California lawmakers appear to be heading on workplace AI regulation.
What Does SB 947 Mean for Employers?
SB 947 would impose a comprehensive set of restrictions on how employers use ADS. To be clear, the bill would not just touch termination decisions, but impact a wide range of workforce management activities. The bill’s practical implications fall into several distinct categories.
- Broad coverage of employees and contractors. The bill defines “worker” broadly to include not only employees but also independent contractors providing services to or through a business. This means that gig-economy platforms and other businesses relying on contractor workforces—along with traditional employers—would be subject to SB 947’s requirements.
- Categorical prohibitions on automated decision making. Beyond restricting how ADS can be used, SB 947 would flatly prohibit certain uses of automated systems regardless of whether a human is involved in the final decision. Under the bill as drafted, employers would be prohibited from using an...
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