California Enacts AI Governance for Workplace

California Governor Gavin Newsom enacted a suite of employment laws in October 2023. These new measures specifically address artificial intelligence and workplace surveillance practices. The legislative package did not include the controversial AB 313, which would have classified menopause as a protected category.

Several bills directly impact employers' use of AI. AB 933 mandates that employers using electronic monitoring systems must notify employees. This notification includes details on the types of data collected and the purposes for its use. Non-compliance could result in penalties of £750 per employee for initial violations and £1,500 for subsequent breaches.

AB 1083 expands existing workplace safety regulations. It requires employers to include hazards related to the use of generative AI in their Injury and Illness Prevention Programs. This ensures that potential risks stemming from AI implementation are formally assessed and mitigated. The bill also tasks the Occupational Safety and Health Standards Board with developing specific AI-related safety standards by 2026.

AB 1166 establishes new requirements for AI-driven hiring processes. Employers using AI to screen job applicants must ensure the algorithms are regularly audited for bias. This applies to AI tools used for initial candidate selection and performance evaluations. The bill aims to prevent discrimination based on protected characteristics.

Further legislation, AB 1345, creates a dedicated task force to study the impact of AI on the workforce. This task force will comprise industry experts, labour representatives, and academic researchers. Its mandate includes analysing job displacement, skill requirements, and the necessity for new training programmes. A preliminary report is expected within 18 months.

These new laws reflect a growing legislative focus on AI governance at the state level. California's actions set a precedent for managing algorithmic impacts in employment. They introduce specific compliance obligations for companies operating within the state. Will other jurisdictions follow California's lead in regulating AI's role in the workplace?