State Senator Jerry McNerney, D-Pleasanton recently introduced the “No Robo Bosses Act” — a bill that would require human oversight of artificial intelligence (AI) systems in the workplace to help prevent abuses.
The bill aims to stop California employers from relying only on automated decision-making systems (“ADS”) for critical workplace decisions, such as like hirings, firings, disciplinary actions, and promotions.
The Use of AI
Employers everywhere are starting to use artificial intelligence to monitor and manage employees in an effort to be more efficient and aid their bottom line. Recent estimates say that there are more than 550 so-called “bossware” products available to employers to help manage workplaces, and a recent national survey found that 40% of workers experience some form of automated task management.
Senate Bill 7 would bar California employers from relying primarily on AI systems to make employment decisions about hiring, promotion, discipline, or termination without human supervision. The bill would also prohibit the use of ADS systems that use personal information of workers to “predict” what they might do in the future.
“Businesses are increasingly using AI to boost efficiency and productivity in the workplace. But there are currently no safeguards to prevent machines from unjustly or illegally impacting workers’ livelihoods and working conditions,” Senator McNerney said.
“SB 7 does not prohibit ADS in the workplace, rather it establishes guardrails to ensure that California businesses are not operated by robo bosses — by putting a human in the loop. AI must remain a tool controlled by humans, not the other way around.”
Examples of Robo Bosses
Senator McNerney provided several examples of robo bosses prioritizing efficiency and cost-savings over health and safety. In the healthcare industry, nurses who work through gig-nursing apps like CareRev, Clipboard Health, ShiftKey, and ShiftMed have had their wages and hours set by algorithms with no human oversight.
McNerney also cites ADS errors that have caused individuals being mistakenly fired from their jobs.
Also, some ADS systems use so-called “predictive behavior” models that collect personal data, use that data to profile an employee, and potentially start adverse actions against a worker based on what the AI “predicts” the worker will do in the future.
What are the Specific Provisions?
The new legislation would create a number of safeguards of AI in the workplace, including the following:
- Requiring human oversight and independent verification for promotion, demotion, firing, and disciplinary decisions.
- Prohibiting ADS systems from collecting or inferring any of the following:
- A worker’s immigration status;
- A worker’s veteran status;
- Their ancestral history;
- Their religious or political beliefs;
- A worker’s health or reproductive status, history, or plan;
- Their emotional or psychological state;
- A worker’s neural data;
- Their sexual or gender orientation;
- A worker’s disability;
- A worker’s criminal record;
- Their credit history; or
- Any other statuses protected state law.
In addition, employers would be required to notify employees in writing if AI tools are being used in decision-making processes.
The bill would also require the employer to maintain a list of all ADS currently in use and would require the notice to include the updated list.
The bill is sponsored by the California Federation of Labor Unions, AFL-CIO.
If enacted, California’s No Robo Bosses Act would be the first law its kind in the country.
Takeaway
If the “No Robo Bosses Act” passes and is signed into law, employers would need to update their employee handbooks and onboarding processes to include AI usage disclosures. In addition, employers may want to consider additional specific training on AI and provide procedures to monitor AI-driven decisions.
Contact us to discuss any questions about AI in the workplace and to determine if your present employment policies should be updated or whether new employment policies should be drafted.
We will continue to watch the progress of this legislation.