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California Pushes Back Against AI-Driven Firings With New Legislation

 


A new California bill, Senate Bill 7—dubbed the "No Robo Bosses Act"—is aiming to limit how much control artificial intelligence and automated systems have over key workplace decisions. As AI becomes more integrated into everyday business operations, this proposed law seeks to ensure that critical decisions about promotions, discipline, or termination are not left solely to algorithms.

Human Oversight Required

Under the bill, companies would be prohibited from relying "primarily" on software to decide if an employee should be promoted, disciplined, or fired. Instead, if an automated system is used, a human must review the decision and gather supporting information to validate its soundness. This safeguard is designed to keep a human element in human resources, especially when it comes to decisions that can significantly impact an individual's career and livelihood.

State Senator Jerry McNerney, who introduced the bill, emphasized the need for oversight, stating that automated decision-making systems should not operate without human involvement in matters as personal as employment status.

Addressing 'Bossware' and Mental Health Monitoring

To illustrate the types of issues the bill addresses, McNerney's office released a list of companies selling so-called "bossware"—software designed to monitor and manage employees. Some of these products attempt to assess a worker's mental state based on work data, a practice the bill would restrict. Recent reports have cast doubt on the scientific validity of such AI-driven mental health assessments, and similar concerns have led the European Union to ban the use of AI for determining users' emotions in its first AI Act.

Hiring Automation Clause Removed

The original version of the bill also sought to ban the use of AI and automated systems for fully automating the hiring process. However, this provision was removed after objections from the California Chamber of Commerce and the Senate Judiciary Committee. Critics argued that only very small companies could feasibly comply with such a restriction, given the scale of hiring at larger organizations.

Looking Ahead

As AI continues to reshape the workplace, California's "No Robo Bosses Act" represents a significant effort to strike a balance between technological innovation and the need for human judgment in critical employment decisions.

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