California’s bill will regulate AI in the workplace and could have a significant impact on businesses



Congress has been introducing for a while around a 10-year pause in AI legislation, almost including it in the Senate version of President Trump’s “big beauty bill” tax and spending bill. But while this is still a national level idea, states are already making their own moves to write laws about A in the workplace.

Colorado First state Legislation through AI at work, with the focus on algorithmic fairness, Annual Impact Assessmentand workers’ rights. California joined the competition earlier this year, when state Senator Jerry McNernyNo robot boss”.

California’s bill will require human supervision in terms of promoting, degrading, discipline or firing workers. It will also protect personal employee information, such as religion and health care history, and prevent employers from using AI to protect workers’ actions, resulting in negative results for them.

“The bill will be primary because it imposes significant restrictions on the use of AI in the workplace.” wealth. “This will require businesses to carefully study their AI systems, including regular audits, and ensure they use them transparently and comply with state regulations.”

While AI has been tempting for business owners and promises significant productivity growth, the potential pitfalls are real. one Recent Investigations It was found that about 60% of managers rely on AI to select their direct reports. In this group, managers are using the technology to determine salary increase (78%), promotion (77%), layoffs (66%), and even termination (64%).

“The purpose of these laws is really to provide transparency,” said Angelina Evans, an attorney for Seyfarth Shaw’s Los Angeles office. “(Protect) people who may have their own rights have been violated and they don’t even know.”

You can read about the California Act and its meaning for employers here.

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British
brit.morse@fortune.com

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