May 12, 2025
Automated decision-making systems (ADS) have become increasingly common and sophisticated. Employers use ADS for many purposes, including promotions, hiring, terminations, and discipline.
However, many have voiced concerns about whether ADS violate worker privacy and other rights. Because of this, California lawmakers began considering a new legislation to improve regulations in the workplace: The “No Robo Bosses Act.”
The proposed No Robo Bosses Act would limit how employers use ADS. It would prohibit the use of ADS in several functions, limit the purposes that employers may use ADS to make decisions, and regulate how they use the systems when making decisions. Lawmakers have unsuccessfully attempted similar legislation in the past. As such, it remains uncertain whether the No Robo Bosses Act will succeed. Regardless, employers should watch its progress and prepare if it becomes law.
If it passes, the No Robo Bosses Act would apply to all employers, including small businesses. The Act would prohibit employers from depending entirely on ADS when making employment decisions. Examples of these decisions include terminations, promotions, hiring, and disciplinary actions.
Alternatively, employers would have to conduct an individual review of the recommendations provided by the ADS when involving such systems in employment decisions. When making employment decisions using ADS, employers must consider corroborating evidence. Such evidence includes personnel records and employee evaluations.
The No Robo Bosses Act would also require employers to provide employees with pre-notice that they will be using an ADS to make employment decisions. Employers must provide a notice at least 30 days before introducing the ADS. It must include a list of all ADS used, their purpose, and how they operate. The notice must also be updated if an employer changes how they use the ADS.
The legislation also bans employers from using ADS if it infers or collects sensitive information. Examples include an employee’s religious or political beliefs, immigration status, and veteran status. Another restriction includes not violating civil rights laws or labor and employment laws. It cannot use individual employee data that is not directly related to the employee’s job tasks, or if the system conducts predictive behavior analysis.
If passed, the No Robo Bosses Act would give workers the right to access the information used by the ADS. It also encourages them to correct any inaccurate information. Additionally, employers must notify workers if an ADS has influenced their employment decision. The worker will have 30 days to appeal that decision, and the employer must respond within 14 days. Employers must designate someone with the power to reverse employment decisions to review ADS decisions. Should the review decide to overturn the decision, the employer will have 21 days to rectify it.
Under the No Robo Bosses Act, employers cannot retaliate against workers who choose to dispute a decision made by an ADS. The legislation would also allow workers or their exclusive representatives to bring a civil action against the employer in court for actual and punitive damages. Public prosecutors and the labor commissioner can also enforce this Act. Employers are also subject to a civil penalty of five hundred dollars per violation.
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.