In Episode 231 of The Workplace podcast, CalChamber General Counsel, Labor and Employment Bianca Saad and CalChamber Senior Policy Advocate Ashley Hoffman discuss recent California regulations and legislation related to automated decision-making systems (ADS) and technology — colloquially known as artificial intelligence (AI).
First, to address the use of ADS in employment practices, the California Civil Rights Council (CRC) has approved new regulations, which expressly state that it’s unlawful for an employer to use an ADS that discriminates against a new applicant or employee, or a class of applicants or employees on a Fair Employment and Housing Act (FEHA)-protected basis.
Saad and Hoffman discuss the non-exhaustive list of ADS tasks’ examples and what employers need to know about the obligations being imposed upon them.
Next, they discuss two major ADS-related bills working their way through the California Legislature. The first is SB 7, which proposes to regulate the use of ADS for employment purposes.
However, except for one notice obligation, the bill doesn’t apply to applicants and hiring. Currently, SB 7 has a number of components, including a required pre-use notice, an appeals process and a long list of prohibitions — several of which are concerning for employers.
The other ADS-related bill is AB 1018, which has a broader approach to ADS use than SB 7. It broadly defines an ADS as anything that even just assists with a decision, and it doesn’t just affect employment. AB 1018 would require certain detailed notices, testing, impact assessments and audits.
Both SB 7 and AB 1018 are Cost Drivers on CalChamber’s Affordability Agenda. Employers will want to track the status of these bills as they work their way through the California Legislature.
