California Passes Bill Regulating “Robo-bosses”

California is once again at the forefront of AI regulation. We previously covered new CPPA rules governing automated decision-making systems (ADS). Now, the state has passed a new law on ADS use in employment. The law is SB 7, also known as the “No Robo Bosses Act,” and it will regulate when and how employers can use AI. A recent Fisher Phillips memo covers the key requirements of the new law:

“If signed by the Governor, the No Robo Bosses Act will do the following:

• Employers will be prohibited from solely using AI to make decisions regarding discipline or termination

• Employers that primarily rely on AI output to make a discipline or termination decision must involve a human in the loop

• Employers must provide detailed advance notice whenever it uses AI to make hiring or employment-related decisions, or post-action notice if it primarily relies on AI is to make a decision related to discipline or termination.”

The new law prohibits relying exclusively on AI to make disciplinary or termination decisions. However, it does not prohibit a human from considering AI suggestions. Companies subject to SB 7 should review their existing and planned AI integration. Paying close attention to any use of AI in human resources functions. Where necessary, companies should implement “human in the loop” processes and policies. Additionally, the new law comes with a variety of notice requirements, which must be communicated to employees 30 days before an ADS is deployed.