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California would prohibit employers from solely using programs powered by artificial intelligence to discipline or fire workers under a bill passed by the Legislature Monday.
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Senate Bill 947 now moves on to Gov. Gavin Newsom who has until the end of September to take action on it.
The measure also requires employers that rely on automated programs for firing and disciplinary decisions to provide workers with a written notice that the technology was used. A human must also review the automated decision.
“Employers are increasingly using AI to boost productivity and achieve cost-savings, but there are no safeguards in place to prevent harm to workers,” said bill author, state Sen. Jerry McNerney, D-Pleasanton, in a statement. “SB 947 will ensure that California businesses do not rely entirely on robo bosses to fire or discipline workers.”
The bill faced broad opposition from an array of organizations that represent major employers, including restaurants, retailers, grocers and food producers, arguing it could lead to costly lawsuits. California Chamber of Commerce spokesperson John Myers declined to comment on the measure’s passage, but said it was removed from a list of “Cost Drivers” that it says “will decimate California’s economic and job growth, and increase costs for small businesses and consumers.”
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Last year, Newsom vetoed a bill authored by McNerney that would have required an employer to provide a written notice when an automated system was used to make a decision on a worker’s wages, discipline and firing. The governor said it imposed overly broad restrictions on employers.
The latest measure would allow the attorney general and district attorneys to enforce it. An employer would also face a $500 fine per violation of the proposal.
The measure was backed by the California Federation of Labor Unions. Its president, Lorena Gonzalez, made an appeal to the governor in a statement.
“Governor Newsom can protect the dignity of work by signing and making California the first in the nation to require human oversight over decisions that impact a worker’s paycheck or livelihood,” she said.
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