Will California's New AI Laws Be Models for Other States?
Key Takeaways
- California enacted several AI employment laws this year, including the "No Robo Bosses Act," which requires human review before automated decision systems can be used to discipline or terminate workers starting July 2027.
- California became the first state to require employers to provide 60 days notice to employees when layoffs are due to AI or automated technology, addressing concerns about AI-driven job displacement.
- The state enacted the first law regulating how attorneys use generative AI and prohibited health care facilities from using AI to independently perform clinical functions or decisions.
- California expanded its AI Transparency Act to require large social media platforms to identify and label AI-generated content, while also mandating disclosures for advertisements using synthetic performers.
- The state passed the country's first moratorium on toys with companion chatbots for children under 16 and required large businesses to disclose when customers interact with chatbots rather than humans.
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The White House executive order last year warning states not to take up AI regulation may have inhibited legislative activity in some states, but California continues to push the boundaries. Long a leader on technology policy, the state is expanding its approach to AI oversight, addressing how the technology affects workers, consumers, and professional services. This week, Gov. Gavin Newsom signed several bills into law that extend California's regulatory reach and could serve as models for other states.
Last week, we wrote about how California was leading the effort to develop frameworks to regulate independent verification organizations (IVOs) that can audit the safety of large frontier AI models. Gov. Newsom signed two bills (CA SB 813 and CA AB 1405) into law earlier in September that would establish requirements for IVOs to audit AI models and create a registry of auditors by 2029.
Independent Verification Organizations (IVOs)
Independent verification organizations are third-party entities that audit and assess the safety of large frontier AI models. California is establishing a regulatory framework for IVOs through legislation that sets requirements for how these organizations conduct audits and creates a registry of qualified auditors. The framework aims to ensure that powerful AI systems are independently evaluated for safety risks before deployment.
Frequently Asked Questions
What does California's No Robo Bosses Act require employers to do before using AI to discipline or fire workers?
California SB 947 requires human review of any automated decision system output before it is used to discipline or terminate a worker, effective July 1, 2027. The law also restricts employers from using the technology to undermine labor or civil rights laws, infer a worker's protected status, run predictive behavioral analysis for employment decisions, or retaliate against workers exercising their legal rights. However, the law covers employees only and does not explicitly protect independent contractors.
Does California require employers to notify workers before AI-related layoffs?
Yes, California SB 951 requires industrial or commercial facilities with at least 75 employees to provide 60 days notice when laying off 50 or more employees within 30 days due to AI or automated technology, beginning January 1, 2027. California is the first state to require notice to employees for AI-driven layoffs, going beyond Connecticut's requirement that only mandates disclosure to the Department of Labor.
What types of AI workplace surveillance does California restrict?
California AB 1883 restricts employers' use of AI to collect neural data or attempt to recognize a worker's emotional state. This adds specific restrictions for AI use beyond Connecticut's general workplace surveillance law, addressing emerging forms of monitoring technology in employment settings.
Are California attorneys allowed to use generative AI in their legal practice?
California SB 574 regulates the use of generative artificial intelligence by attorneys, making California the first state to enact such a law. The law establishes requirements for how attorneys can use AI tools in their professional practice.
What disclosure requirements does California have for customer service chatbots?
California AB 1609 requires large businesses to disclose that a customer service chatbot is not an interaction with a human and to provide a human representative upon request. This goes further than Maine and Utah, which only require disclosures for chatbot interactions but do not mandate access to a human representative.
