California Assembly Seeks Human Oversight for Artificial Intelligence Decisions

The California Legislature has approved a bill that prohibits employers from disciplining or firing employees solely through the use of artificial intelligence programs.

Legal Limits on Artificial Intelligence Decisions

During its session on Monday, the California Legislature passed a bill restricting employers' authority to fire or discipline employees solely through AI-driven programs. The measure, known as Senate Bill 947, has been sent to Governor Gavin Newsom for approval.

Governor Newsom's Decision Pending

Governor Gavin Newsom must take action by the end of September for the approved bill to either take effect or be vetoed. The bill requires employers to provide written notice to their employees if they use such automation systems.

Mandatory Human Review

The bill mandates that employers using automation in termination and disciplinary processes must provide written notice and ensure that decisions are reviewed by a human. Senator Jerry McNerney, the author of the bill, emphasized that employers use AI to cut costs.

Reactions from the Business Community

Organizations representing major employers, including restaurants, retailers, and food manufacturers, mounted widespread opposition to the bill. These groups argued that the regulation could lead to costly litigation, while the California Chamber of Commerce also weighed in on the issue.

Past Veto and New Regulation

Governor Newsom vetoed a similar bill last year on the grounds that it contained overly broad restrictions. The new bill proposes a penalty of $500 per violation and allows the implementation to be overseen by the attorney general and district attorneys.

Call for Support from Unions

The California Labor Federation gave its full support to the bill. In her appeal to Governor Newsom, Federation President Lorena Gonzalez stated that human oversight must be required for decisions affecting an employee's livelihood.