California bans AI from making layoff decisions
What's the story
California has passed a groundbreaking law, the 'No Robo Bosses Act,' that prohibits employers from using artificial intelligence (AI) as the sole basis for firing or disciplining employees. The legislation, signed by Governor Gavin Newsom on September 30, mandates human review when AI is used to support termination or disciplinary decisions. It is touted as the first of its kind in the United States.
Review requirement
Human must review AI's decision and verify the outcome
Under Senate Bill 947 (SB 947), if an automated decision-making system plays a major role in firing or disciplining an employee, a human must review and verify the outcome.
This review process should take into account information beyond just what the system recommends.
It could include things like managerial assessments, personnel records, and peer evaluations to ensure fairness and accuracy in such critical decisions.
Disclosure obligations
Law emphasizes transparency in AI-influenced decisions
The new law also emphasizes transparency. Employers are required to inform workers when an automated decision-making system has been used in a termination or disciplinary action.
They must disclose the employee data considered by the system and provide details of a human contact who can explain the decision, ensuring accountability for AI-influenced outcomes.
Balanced approach
Technology should assist humans, not replace them
The 'No Robo Bosses Act' doesn't ban the use of AI in workplace management but instead seeks to ensure human oversight when automated systems are involved in decisions that could lead to job loss.
State Senator Jerry McNerney, who authored the legislation, said technology should assist human decision-making, not replace it.
"AI must remain a tool controlled by humans, not the other way around," he added.
Union backing
Legislation backed by California labor movement
The bill has been backed by California's labor movement, with the California Federation of Labor Unions, AFL-CIO, sponsoring it.
Lorena Gonzalez, president of the organization, said the legislation comes after workers and unions have long pushed for stronger protections around workplace AI.
The concerns go beyond just an algorithm making a wrong recommendation to include bias and challenges employees could face when contesting an algorithmic decision.