California, August 26, 2025
News Summary
California lawmakers are evaluating several bills, including Senate Bill 7, to regulate artificial intelligence in employment. SB 7 would require 30-day notice before using AI for hiring and firing, and prohibits using AI for personal data access. Concerns over bias in AI decision-making processes have emerged, particularly relating to discrimination against applicants. The California Federation of Labor Unions supports these measures, highlighting the importance of protecting worker privacy as AI technologies advance.
California lawmakers are currently deliberating several proposed bills aimed at regulating the use of artificial intelligence (AI) in employment decisions. Among these, Senate Bill 7 (SB 7) is a key proposal that requires employers to inform workers 30 days prior to employing AI for hiring, firing, promotions, and salary decisions. If passed, SB 7 would empower workers to appeal AI-generated decisions and forbid employers from utilizing AI to extract personal information, including aspects like immigration status or health conditions.
A recent audit revealed that many companies currently use algorithmic management tools reliant on AI for determining employee pay, a practice that has gained traction over nearly a decade, largely due to its initial adoption in the gig economy. Disturbingly, AI resume screening software has been criticized for disqualifying applicants based on arbitrary factors, including their race, gender, or even their choice of eyewear, thus raising concerns about discrimination in hiring practices.
The overarching aim of the legislation is to shield employees from damaging predictions based on their brain data— potential revelations about their personal thoughts or health issues could further compromise worker privacy. SB 7 enjoys the backing of the California Federation of Labor Unions, AFL-CIO, an organization that represents more than two million workers statewide. The labor federation has been politically active, contributing upwards of $2.1 million to Assembly and Senate members last year.
In addition to SB 7, lawmakers are also reviewing Assembly Bill 1331 and Assembly Bill 1221, which center on regulating workplace surveillance practices. The president of the California Federation of Labor Unions emphasizes that employers should not be making predictions that infringe on workers’ privacy, such as identifying pregnancy status.
Senator Jerry McNerney, the author behind SB 7, has pointed to the pressing need for a balance between productivity and worker rights amidst the rapid advancements in AI technology. Potential adjustments to SB 7 may alleviate concerns that its regulations could lead to inflated operational costs for businesses. McNerney mentioned that reducing the appeal process for AI decisions could be a viable way to minimize these expenses.
All bills proposed with anticipated costs exceeding $50,000 are placed on a suspense calendar, allowing appropriations committees the discretion to dismiss them over budgetary concerns. The assembly’s analysis suggests compliance with SB 7 could cost the state around $600,000 or more, though the financial implications for state agencies remain uncertain due to undisclosed levels of automation in usage.
Previous efforts to regulate AI in employment have faced significant resistance, leading the California Privacy Protection Agency to relax its own AI-related regulations. Furthermore, another proposed piece of legislation, Assembly Bill 1018, intends to require testing of automated decision-making systems prior to their use and also to provide individuals the right to appeal automated decisions. The prior year saw AB 1018 withdrawn due to amendments that confined its scope to employment evaluation.
Major technological companies and various healthcare organizations have emerged as opposition voices against AB 1018, citing worries over operational costs and potential adverse impacts on patient care. The California Civil Rights Department has already put into action measures to guard against discriminatory practices in automated hiring processes, with these regulations effective from this October.
A recent survey indicates a notable public sentiment towards AI, with 60% of Californians believing that the benefits of AI primarily serve the wealthy. Furthermore, over 70% are in favor of legislative initiatives designed to safeguard individuals from negative consequences of AI deployment in the workplace. Advocates assert that transparency for workers regarding AI use in employment decisions is crucial in fostering equitable working environments.
Without the successful passage of these legislative measures, experts warn that progress in regulating AI deployment could stagnate within California.
FAQ
What is Senate Bill 7 (SB 7)?
Senate Bill 7 is a proposed legislation that would require employers to notify employees 30 days before using AI for employment decisions and would allow workers to appeal those decisions.
What concerns does SB 7 address?
SB 7 addresses concerns over employee privacy by prohibiting employers from using AI to derive personal information, including health and immigration status.
What are some other bills related to AI and employment under consideration?
Other bills include Assembly Bill 1331 and Assembly Bill 1221, which aim to regulate workplace surveillance practices, and Assembly Bill 1018, which mandates testing of automated decision-making systems.
What is the public sentiment regarding AI in employment?
A recent survey indicates that 60% of Californians believe AI primarily benefits the wealthy, with more than 70% supporting legislative measures to protect individuals from AI’s adverse impacts.
Deeper Dive: News & Info About This Topic
- California Labor Law Blog: Finalizes AI Regulations
- Wikipedia: Artificial Intelligence
- Littler: Landmark AI Employment Regulations
- Google Search: California AI Employment Regulations
- California Labor Law: New AI Laws
- Encyclopedia Britannica: Artificial Intelligence
- White & Case: Tracking AI Laws
- Google News: California AI Laws
- Pillsbury Law: California AI Laws
- Google Scholar: California AI Employment
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
