California enacts laws to regulate AI in the workplace

The new laws prohibit employers from using AI as the sole basis for firing workers, from using it to predict employees' emotional states, or from collecting neural data. Companies are also now required to notify workers if layoffs are caused by AI and are banned from using AI for surveillance in workplace bathrooms. These regulations come as AI technology has largely developed without significant oversight.

Lorena Gonzalez, president of the California Federation of Labor Unions, AFL-CIO, described the legislation as a "turning point," stating that California workers are demonstrating that they "don’t have to accept" the unchecked development of AI in the workplace. Other states, including Colorado, Connecticut, Illinois, and Texas, have also passed individual laws with narrower scopes concerning AI in the workplace.

Worker advocates have been closely monitoring AI companies' product releases to anticipate potential uses. The California Federation plans to leverage this momentum to push for requirements that employers disclose their use of AI in the workplace, a measure that previously failed in the state assembly.

Robin Feldman, director and founder of the AI Law & Innovation Institute at The University of California College of the Law, San Francisco, noted that while the laws are a significant step, their implementation is limited as only the government, not individual workers, can enforce them.

The new regulations emerge amidst record AI spending by tech companies and significant job cuts. Companies like Meta have already faced scrutiny, with one program pausing the tracking of worker computer activities for AI training, and employees filing lawsuits alleging AI tools targeted them for layoffs based on disability accommodations or leave status.

Annette Bernhardt, senior tech policy adviser at UC Berkeley Labor Center, observed that workers are increasingly vocal about fears of job loss and the dehumanizing aspects of algorithmic surveillance. Danielle Ochs, a shareholder at Ogletree Deakins, commented that the laws "have teeth" but acknowledged uncertainty about their sweeping impact, suggesting that employers are more focused on responsible AI implementation across systems rather than specific prohibited uses. Ochs also raised concerns that the regulations might inadvertently hinder helpful AI applications, such as those ensuring driver safety.

While it is too early to assess the full effectiveness of these laws, worker advocates remain optimistic about the direction of regulatory progress, viewing these measures as a foundational step in addressing AI's potential impacts.