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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-02</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator McNerney</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthor: Senator Reyes)</ns0:AuthorText>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>McNerney</ns0:Name>
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<ns0:House>SENATE</ns0:House>
<ns0:Name>Reyes</ns0:Name>
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<ns0:Title>An act to add Part 5.5.5 (commencing with Section 1520) to Division 2 of the Labor Code, relating to employment.</ns0:Title>
<ns0:RelatingClause>employment</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Employment: automated decision systems.</ns0:Subject>
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<html:p>Existing law requires the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems (ADS) that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency.</html:p>
<html:p>Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California, including the Division of Labor Standards Enforcement, led by the Labor Commissioner, within the Department of Industrial Relations.</html:p>
<html:p>This bill would prohibit an employer from using an ADS to perform certain functions and would limit the purposes for and way in which an ADS
may be used. The bill would authorize a worker to request, and require an employer to provide, a copy of the most recent 12 months of the worker’s own data primarily used by an ADS to make a disciplinary, termination, or deactivation decision, as specified. The bill would require an employer that uses an ADS to assist in making a disciplinary, termination, or deactivation decision to provide the affected worker with a written postuse notice, as specified.</html:p>
<html:p>This bill would prohibit an employer from discharging, threatening to discharge, demoting, suspending, or in any manner discriminating or retaliating against any worker for taking certain actions asserting their rights under the bill. The bill would require the Labor Commissioner to enforce the bill’s provisions, authorize, in the alternative, any worker who has suffered a violation of these provisions to bring a civil action for damages, and authorize a public prosecutor to bring a civil enforcement action, as
specified. The bill would set forth specified types of relief that a plaintiff may seek and specified penalties that an employer that violates these provisions is subject to, including a $500 civil penalty.</html:p>
<html:p>This bill would also provide that an employer who complies with the requirements related to notice in this bill is not required to comply with any substantially similar provisions under any other state law, except as specified. The bill would not apply to parties covered by a valid collective bargaining agreement if the agreement contains specified information, including an explicit waiver of the bill’s provisions. The bill would declare that its provisions do not prohibit any employer from complying with regulatory or contractual requirements in the provision of products or services to the federal government, as defined.</html:p>
<html:p>This bill would declare that its provisions are severable.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_AC821CED-BBD3-4EC8-BC14-FA701BB18C46">
<ns0:Num>SECTION 1.</ns0:Num>
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Part 5.5.5 (commencing with Section 1520) is added to Division 2 of the
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, to read:
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<ns0:LawHeading id="id_FBCEE056-AA5B-4988-B8BC-060CF673BB72" type="PART">
<ns0:Num>5.5.5.</ns0:Num>
<ns0:LawHeadingVersion id="id_6EDF1411-CC2D-41B7-92D6-C620BE189340">
<ns0:LawHeadingText>Automated Decision Systems in the Workplace</ns0:LawHeadingText>
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<ns0:LawHeading id="id_4D792D75-BC98-4E34-B2BC-633DB1E90A30" type="CHAPTER">
<ns0:Num>1.</ns0:Num>
<ns0:LawHeadingVersion id="id_721C8DD6-C116-4C3F-AA40-33544218EE15">
<ns0:LawHeadingText>Definitions</ns0:LawHeadingText>
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<ns0:LawSection id="id_303C4779-F1CE-4B44-9BD8-A1E94640DD8B">
<ns0:Num>1520.</ns0:Num>
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<html:p>For purposes of this part, the following shall apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“ADS output” means any information, data, assumptions, predictions, scoring, recommendations, decisions, or conclusions generated by an ADS.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Artificial intelligence” means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Automated decision system” or “ADS” means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a
score, classification, or recommendation, that is used to assist or replace human discretionary decisionmaking and materially impacts natural persons. An automated decision system does not include a spam email filter, firewall, antivirus software, identity and access management tools, calculator, database, dataset, or other compilation of data.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“Employer” means any person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or
instrumentality thereof.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Employer” includes a labor contractor of a person defined as an employer under paragraph (1).
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“Employment-related decision” means any decision by an employer that materially impacts a worker’s wages, benefits, compensation, work hours, work schedule, performance evaluation, hiring, discipline, promotion, termination, job tasks, skill requirements, work responsibilities, assignment of work, access to work and training opportunities, productivity requirements, or workplace health and safety.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
“Federal government” shall have the same meaning as set forth in Section 52008 of the Government Code.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
“Individualized” means specific to an individual or group, band, class, or tier of individuals with particular personal
characteristics, behaviors, or biometrics.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Predictive behavior analysis” means any system or toll that predicts, infers, or modifies a worker’s behavior, beliefs, intentions, personality, emotional state, or other characteristic or behavior.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
“Worker” means any natural person who is an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in any workplace.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
“Worker data” means any information that identifies, relates to, or describes a worker, regardless of how the information is collected, inferred, or obtained.
</html:p>
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<ns0:LawHeading id="id_7AE374CA-E6AA-4711-A47F-48F973885EEA" type="CHAPTER">
<ns0:Num>2.</ns0:Num>
<ns0:LawHeadingVersion id="id_A74A0C08-E833-4546-A7E3-F9166E0E33F0">
<ns0:LawHeadingText>Employer Requirements</ns0:LawHeadingText>
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<ns0:LawSection id="id_F683E9AA-12DA-4E35-8E94-2E8DA9277492">
<ns0:Num>1522.</ns0:Num>
<ns0:LawSectionVersion id="id_2496330C-D444-472D-AD20-1BB96CC58847">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An employer shall not use an ADS to do any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Prevent compliance with or violate any federal, state, or local labor, occupational health and safety, employment, or civil rights laws or regulations.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Infer a worker’s protected status under Section 12940 of the Government Code.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Conduct predictive behavior analysis on a worker.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Identify, profile, predict, or take adverse action against a worker for exercising their legal rights, including, but not limited to, rights guaranteed by state and federal employment and labor
law.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Use or rely upon individualized worker data as inputs or outputs to inform compensation unless the employer can clearly demonstrate that any differences in compensation for substantially similar or comparable work assignments are based upon cost differentials in performing the task involved, or that the data was directly related to the tasks that the worker was hired to perform.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An employer shall not rely solely on an ADS when making a disciplinary, termination, or deactivation decision.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If an employer uses an ADS output to assist in making a disciplinary, termination, or deactivation decision, the employer shall direct a human reviewer to conduct an independent investigation and compile corroborating or supporting information for the decision. For purposes of this
paragraph, “other information” may include, but is not limited to, any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Supervisory or managerial evaluations.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Personnel files.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Work product of workers.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Peer reviews.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Witness interviews, that may include relevant online customer reviews.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If an employer cannot corroborate the ADS output, or the human reviewer has concluded that the ADS output is inaccurate, incomplete, or misleading, the employer shall not use the ADS output to discipline, terminate, or deactivate a worker.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
An employer shall not use customer ratings as
the only or primary input data used to assist the employer to make employment-related decisions.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A worker shall have the right to request, and an employer shall provide, a copy of the most recent 12 months of the worker’s own data primarily used by an ADS to make a disciplinary, termination, or deactivation decision. A worker is limited to one request every 12 months for a copy of their own data used by an ADS to make a disciplinary, termination, or deactivation decision.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
For purposes of safeguarding the privacy rights of consumers, workers, and individuals, when an employer is required to provide worker data pursuant to this part, that worker data shall be provided in a manner that anonymizes the customer’s, other worker’s, or individual’s personal information.
</html:p>
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<ns0:LawHeading id="id_7187D3D2-D4B6-4FE8-A1A9-153C7CB00E7E" type="CHAPTER">
<ns0:Num>3.</ns0:Num>
<ns0:LawHeadingVersion id="id_A175ADFA-1C26-4E92-82FC-517DB7288EF1">
<ns0:LawHeadingText>Automated Decision System Postuse Notice</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_BA051721-606B-46B4-8A2C-5230E1A42572">
<ns0:Num>1524.</ns0:Num>
<ns0:LawSectionVersion id="id_A45B1B53-D3CE-417E-9430-5EC1AC153444">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An employer that uses an ADS to assist in making a disciplinary, termination, or deactivation decision shall provide the affected worker with a written postuse notice at the time the employer informs the worker of the decision. The notice shall comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
It shall be written in plain language as a separate, stand-alone communication.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
It shall be in the language in which routine communications and other information are provided to workers.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
It shall be provided via a simple and easy-to-use method, including an email, hyperlink, or other written format.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The post-use notice shall contain all of the following information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
That the employer used an ADS to assist the employer in the disciplinary, termination, or deactivation decision with respect to the worker.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
That a human reviewer conducted an independent investigation and compiled evidence to corroborate the ADS output.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Contact information for the human that the worker may contact for more information about the decision and the worker’s right to access a copy of their own data and corroborating evidence that was used in the decision.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
That the employer is prohibited from retaliating against the worker for exercising their rights under this part.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
When responding to a data access request pursuant to this section, an employer shall provide to the worker a written, plain language document using a simple and easy-to-use method that is accessible away from the workplace containing all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The specific decision for which the employer used the ADS.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The specific worker input data that the ADS used, and the specific worker output produced by the ADS.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Any additional corroborating or supporting information used in addition to the ADS output in making the decision.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The name of the vender or entity that created the ADS and the product name of the ADS.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A copy of any completed impact assessments regarding the ADS in question.
</html:p>
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<ns0:LawHeading id="id_6CE8760D-9E35-46D2-B806-8E66703E1E87" type="CHAPTER">
<ns0:Num>4.</ns0:Num>
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<ns0:LawHeadingText>Enforcement</ns0:LawHeadingText>
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<ns0:LawSection id="id_BDB82251-360D-407C-9E6C-7E4CEFB4470C">
<ns0:Num>1526.</ns0:Num>
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<ns0:Content>
<html:p>An employer shall not discharge, threaten to discharge, demote, suspend, or in any manner discriminate or retaliate against any worker for using or attempting to use their rights under this part, filing a complaint with the Labor Commissioner, alleging a violation of this part, cooperating in an investigation or prosecution of an alleged violation of this part, or any action taken by the worker to invoke or assist in any manner the enforcement of this part, or for exercising or attempting to exercise any right protected under this part.</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_723FCB42-92A6-448A-BDC9-15722CB0DCBE">
<ns0:Num>1526.1.</ns0:Num>
<ns0:LawSectionVersion id="id_BAF95F55-837A-4980-B52B-C73114C2F9CE">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Labor Commissioner shall enforce this part, including investigating an alleged violation, and ordering appropriate temporary relief to mitigate a violation or maintain the status quo pending the completion of a full investigation or hearing through the procedures set forth in Section 98.3, 98.7, 98.74, or 1197.1, including issuing a citation against an employer who violates this part and filing a civil action. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the Labor Commissioner shall be the same as those set forth in Section 98.74 or 1197.1, as applicable.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Alternatively to subdivision (a), any worker, or their exclusive representative, who has
suffered a violation of this part may bring a civil action in a court of competent jurisdiction for damages caused by that adverse action, including punitive damages.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This part may also alternatively be enforced by a public prosecutor pursuant to Chapter 8 (commencing with Section 180) of Division 1.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
In any civil action brought pursuant to paragraph (a) or (b) in superior court in any county wherein the violation in question is alleged to have occurred, or wherein the person resides or transacts business, the petitioner may seek appropriate temporary or preliminary injunctive relief, including punitive damages, and reasonable attorney’s fees and costs as part of the costs of any such action for damages.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
An employer who violates this part shall be subject to a civil penalty of five hundred dollars
($500).
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<ns0:LawSection id="id_6B63127F-8D46-492B-8E01-CA90571D1B7D">
<ns0:Num>1526.2.</ns0:Num>
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<ns0:Content>
<html:p>This part does not preempt any city, county, or city and county ordinance that provides equal or greater protection to workers who are covered by this part.</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_A6F96AF7-EEA0-4A59-A227-BEB2BA3C9DCB">
<ns0:Num>1526.3.</ns0:Num>
<ns0:LawSectionVersion id="id_B23D74A1-0947-4C19-BEFC-F52222A44396">
<ns0:Content>
<html:p>Except as set forth in Section 1526.4, an employer who complies with the requirements related to notice under this part is not required to comply with any substantially similar notice provisions related to automated decision systems used for employment-related decisions required under any other state law.</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_D33B8D76-61BF-42A8-A7A1-13DF83C9A4B8">
<ns0:Num>1526.4.</ns0:Num>
<ns0:LawSectionVersion id="id_685BF324-D5C2-4618-A6EF-5231D10ECACD">
<ns0:Content>
<html:p>Notwithstanding Section 1526.3, an employer that is a business subject to the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100) of Part 4 of Division 3 of the Civil Code) is subject to any privacy-related automated decisionmaking technology regulation duly adopted by the California Privacy Protection Agency pursuant to Section 1798.185 and subdivision (b) of Section 1798.199.40 of the Civil Code.</html:p>
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<ns0:LawSection id="id_B2DA3B00-0BC0-4EC7-9F92-77C415ABFA46">
<ns0:Num>1526.5.</ns0:Num>
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<html:p>The provisions of this part shall not apply to parties covered by a collective bargaining agreement if the agreement explicitly waives this part in clear and unambiguous terms, expressly provides for the wages or earning, working conditions, and other terms and conditions of work, and provides protection from algorithmic management.</html:p>
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<ns0:Num>1526.6.</ns0:Num>
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<html:p>This part does not prohibit any employer from complying with regulatory or contractual requirements in the provision of products or services to the federal government.</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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<html:p> The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.</html:p>
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