California’s “No Robo Bosses Act” Gets Vetoed

Last month, I wrote about a new California law, SB 7, also known as the “No Robo-Boses Act.” This legislation would have introduced regulations preventing employers from making disciplinary or termination decisions solely using AI. However, this AI law is going back to the drawing board as California Governor Gavin Newsom vetoed the measure early this week. A memo from Fisher Phillips breaks down the Governor’s reasoning:

“While the Governor acknowledged the growing risks of automated workplace tools, he concluded the bill was overbroad, duplicative of existing regulation, and potentially harmful to California businesses. This move will have an impact on employers not only in the Golden State but across the country as regulators from coast to coast struggle with how – and whether – to regulate artificial intelligence in the workplace.”

Part of the rationale behind the Governor’s veto was his opinion that SB 7 is duplicative of existing California Privacy Protection Agency (CPPA) rules. We previously covered the new CPPA rules adopted earlier this year on Automated Decisionmaking Technology (ADMT). These rules require certain disclosures when companies use AI systems in employment decisions. The Governor is choosing to assess the effectiveness of the existing CPPA rules in regulating AI in the workplace before considering new legislation. We’ll see how the CPPA rules play out and if the California legislature still feels compelled to regulate “robo-bosses” in its legislative session next year.