Employment: automated decision systems.

Senator McNerney's workplace automation legislation establishes comprehensive requirements for employers using automated decision systems (ADS) in employment decisions. The bill requires employers to notify workers at least 30 days before deploying ADS for employment decisions and maintain an updated inventory of all systems in use. For existing systems, employers must provide notice by April 1, 2026.

The legislation prohibits using ADS to infer protected characteristics, conduct predictive behavior analysis, or make decisions based solely on customer ratings. Employers must involve human reviewers when using ADS for discipline or termination decisions and provide workers access to their ADS-related data. Workers facing ADS-influenced disciplinary actions gain the right to appeal within 30 days, with employers required to designate an independent human reviewer to evaluate appeals within specified timeframes.

The Labor Commissioner holds primary enforcement authority, with the ability to investigate violations and issue citations. Workers may also pursue civil actions for damages, including punitive damages, with violations subject to $500 civil penalties. The bill includes anti-retaliation provisions protecting workers who exercise their rights and allows local jurisdictions to enact stronger protections. Employers complying with these notice and appeal requirements are exempt from substantially similar provisions under other state laws.