California Legislature Passes Bill Barring AI From Firing Workers, Sending Measure to Newsom by Sept. 30
Updated
Updated · CNBC · Sep 20
California Legislature Passes Bill Barring AI From Firing Workers, Sending Measure to Newsom by Sept. 30
1 articles · Updated · CNBC · Sep 20
Summary
An overwhelming California legislative majority approved a bill that would bar automated systems from firing or disciplining workers without human oversight, leaving Gov. Gavin Newsom until Sept. 30 to sign or veto it.
The push gained urgency after Andon Labs' AI manager Luna recommended firing a worker in August, adding to wider complaints that HR algorithms can be biased, opaque or used to target layoffs.
Meta is fighting a July lawsuit alleging AI-assisted systems ranked workers for layoffs in ways that disproportionately hit employees on medical or family leave; Meta denies the claims.
90% of U.S. managers say their firms use at least one algorithmic management tool, according to the OECD, while the ILO says such systems are spreading across sectors and can intensify surveillance and reduce worker autonomy.
The bill lands amid a broader debate over whether HR needs new structures to handle human-AI workplace conflicts as unions, nonprofits and governance groups press companies to keep humans in the loop.