California mandates transparency on automated decision systems in workplaces

In California, new legislation known as SB 7 addresses the use of automated decision systems in workplaces. This law, established by the California legislature, is set to take effect on October 1, 2025. It mandates that employers provide written notices to workers and job applicants when such systems are implemented. The intent is to ensure transparency and prevent high-stakes employment decisions from being made solely by machines. The legislation stipulates that employers must notify employees affected by an automated decision system at least thirty days before deployment, with a deadline of April 1, 2026, for existing systems in use prior to SB 7's enactment. Disclosure at the application stage is also required if a system is used to evaluate candidates. These notifications must include details such as the employment decisions impacted by the automated tools, the type of worker data collected, the sources of that data, and how it is processed. Additionally, workers will have the right to request copies of their personal data used in decisions involving discipline, termination, or deactivation. SB 7 was introduced at a crucial time, coinciding with new regulations from the California Civil Rights Council regarding automated decision systems effective October 1, 2025. The Council aims to prevent employment discrimination based on protected characteristics, but unlike SB 7, its regulations do not require notifications or recognition of the need for human oversight in automated decision-making. As the landscape of workplace AI evolves, employers are advised to prepare for compliance with these new obligations, ensuring alignment with broader anti-discrimination laws.