California employers that use artificial intelligence or other automated tools to manage their workforce could soon face a significant new set of obligations that will be layered on top of the existing regulations. SB 947 will prohibit employers from relying solely on automated decision systems to discipline or terminate workers and create new human review requirements, worker notices, and data access requirements when employers primarily rely on those systems for disciplinary or termination decisions. The Legislature sent the bill to Governor Newsom and, if signed, the new requirements will be operative July 1, 2027.
SB 947 governs employer use of “automated decision systems” (ADS). ADS is very broadly defined to include computational processes derived from machine learning, statistical modeling, data analytics, and other AI techniques that make decisions or facilitate human decision-making. The definition is not limited to tools marketed as “AI.” The bill would apply to both public and private employers without regard to the number of workers employed.
The bill bans employers from using ADS to make certain employment-related decisions such as violating labor, employment, or civil rights laws, or to predict and take adverse action against a worker for exercising rights under employment laws. And, employers will be prohibited from relying on ADS as the sole basis for making disciplinary or termination decisions.
The bill regulates the use of ADS in...
Irene lodged a claim for home contents including a laptop, jewellery, coins and pottery in March 2023, followed by a vehicle claim on July 4. The insurance company paid out on each, then sought to...