April 9, 2025
California lawmakers have introduced a bill that could add new challenges to reviewing criminal history. Specifically, Senator Jerry McNerney introduced this bill to address issues concerning artificial intelligence (AI) involvement when reviewing criminal history.
This new bill is Senate Bill 7 (SB 7) and recently reached the state Senate. Also known as the “No Robo Bosses Act,” SB 7 would regulate employers’ use of AI in the hiring process. This regulation would also include software that made it easier for parties to collect data on prior criminal history.
According to SB 7, employers may not use automated decision-making tools to make employment decisions without human oversight. These decisions include hiring, firing, or promotions. Furthermore, these regulations would prohibit employers from relying on these tools to infer information about an applicant or employee’s criminal or credit history.
Employers began relying more heavily on AI tools after a 2021 court decision limited the effectiveness of criminal background checks in California. The case that caused this change is “All of Us or None V. Hamrick.” It barred the inclusion of personal identifiers such as dates of birth or driver’s license numbers in court records.
Barring the inclusion of personal identifiers significantly changed the accuracy of background screening in California, as these checks relied on such information to ensure the correct records matched with the intended individual. Without it, employers took on increased hiring risks because they did not know whether the new hire had criminal backgrounds related to their position.
In many cases, employers sought new ways to assess the risk of hiring new employees. For example, one alternative many discovered is AI-powered social media screening. This method examines an applicant’s online content and then flags potential risks. Such risks could include drug use, violence, and many others.
If SB 7 passes, it would prevent employers from using ADS tools that use social media content to infer credit or criminal history. SB 7 also includes cases where the system does not explicitly claim to make these inferences. The bill may also ban using AI proxy indicators. In this case, it refers to situations like belonging to specific groups or discussions of legal or financial troubles. Such changes could make assessing job applicants more difficult and costly.
Employers are no strangers to challenges using criminal records to make educated employment decisions. However, SB 7 becoming law could require many employers to change their hiring practices to ensure compliance. Employers should watch for further updates and prepare accordingly, regardless of whether it passes as is.
Disclaimer:
Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.