Employers have been using artificial intelligence (“AI”) in their workplaces for years. The earliest systems focused on automation and mathematical problem solving. In recent years, AI technology has advanced dramatically, and its range of workplace applications has grown to match. Today, employers most commonly use AI to screen résumés of potential candidates; however, some also use it to draft communications, performance reviews, disciplinary notices, or coaching emails. Tech savvy employers and managers can even use AI to brainstorm effective ways of having difficult conversations with employees. Notably, employers may be completely unaware that members of management are using AI in their workplaces. As the California State Legislature’s August 31, 2025, deadline to pass legislation rapidly approaches, California lawmakers are contemplating a new AI bill which, if passed, will significantly expand the reach of California’s Labor Law to an employer’s use of AI.

 

California’s Senate Bill 7, dubbed the “No Robo Bosses” Act, is not the first time a state legislature has sought to regulate the use of AI in the workplace. At least a handful of state legislatures, including California, Colorado, Illinois, Maryland, New Jersey, and even local governments, like New York City, have attempted to keep up with the progress of AI via laws that expose employers to liability if their use of AI results in discriminatory employment practices. The No Robo Bosses Act, however, is unique in that it proposes a more comprehensive legislative framework.

 

The No Robo Bosses Act would apply to the use of automated decision systems (“ADS”) in employment. ADS are broadly defined as “any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decision making and materially impacts natural persons.” The law would require employers to warn employees at least 30 days prior to the use of ADS or, if already in use, by February 1, 2026. The law would require employers to notify applicants upon receiving the application that the employer utilizes ADS in hiring decisions, if the employer will use ADS in making decisions for that position, via an automatic reply mechanism or on the job posting. Employers would also be required to maintain and disclose a list of ADS tools used in employment decisions.

 

Most notably, employers would be prohibited from relying primarily on ADS when making discipline, termination, or deactivation decisions, and would need to provide written notice to an employee when using ADS in these areas. The employee would then have the right to appeal the decision within 30 days, including the right to access the data used and the option to request access to any corroborating or supporting evidence.

 

Although the law would only apply to California employers, those across the country should take notice that a similar legislative agenda may soon come to their state and affect their workplace. For more information or assistance regarding your use of AI in the workplace, please contact a Bennett Law Firm attorney.