Labor
Employment: automated decision systems
California will curb employers’ use of automated systems in discipline and firing decisions starting July 1, 2027.
The law requires meaningful human review and disclosure when an employer primarily relies on an automated decision system to discipline or terminate a worker. It also bars systems from being used to evade workplace protections or retaliate against workers for exercising legal rights.
What the law does
- Bars employers from using automated decision systems to violate labor, safety, employment, or civil-rights laws; infer protected status; or target workers for exercising legal rights.
- Prohibits employers from relying solely on an automated system for discipline or termination, and requires human corroboration when the system is the primary basis for the decision.
- Bars use of an automated output for discipline or termination when it cannot be corroborated or a reviewer finds it inaccurate, incomplete, or misleading.
- Requires a plain-language written notice at the time of a discipline or termination decision primarily based on an automated system, including confirmation of human review and a contact person.
- Gives employees the right to request a meaningful, objective description of their own data used by the system, while requiring others’ personal information to be anonymized.
- Authorizes enforcement by the Labor Commissioner and public prosecutors, with remedies including injunctions, damages, attorney’s fees, and $500 per violation.
Who it affects
- Private and public employers, including state and local government entities, labor contractors, and farm and foreign labor contractors.
- Employees subject to discipline or termination decisions primarily based on automated systems.
- Unionized parties whose collective bargaining agreement does not expressly waive the law and provide specified algorithmic-management protections.
Context
The law does not apply where specified federal requirements or binding federal contracts require the system for aircraft, national-security, military, space, or defense work.