Employment: automated decision systems.

Senator McNerney's legislation establishes comprehensive requirements for employers using automated decision systems (ADS) in workplace decisions, mandating transparency and worker protections around algorithmic employment practices. The bill requires employers to notify workers at least 30 days before implementing an ADS, maintain updated inventories of all systems in use, and provide detailed information about how these systems collect and process worker data.

Under the new provisions, employers must allow workers to access and correct their data used by automated systems and appeal any adverse decisions. The legislation prohibits using ADS to conduct predictive behavior analysis, infer protected characteristics like immigration status or health information, or serve as the primary basis for promotion, discipline, or termination decisions. When ADS influences employment decisions, employers must designate impartial human reviewers to evaluate appeals within strict timeframes.

The bill empowers the Labor Commissioner to investigate violations and issue citations, while also enabling workers to pursue civil actions for damages. Employers face civil penalties of $500 per violation and are prohibited from retaliating against workers who exercise their rights under the law. For existing automated systems, employers must provide required notices by February 2026, with ongoing obligations to notify workers of significant updates or changes in ADS usage within 30 days.