Abstract tech stuff
California Governor Gavin Newsom has vetoed Senate Bill 7, also known as the “No Robo Bosses Act,” which aimed to regulate how employers use automated decision systems (ADS) in the workplace.
Introduced by State Senator Jerry McNerney in late 2024, the bill sought to establish oversight requirements for employers relying on AI-powered tools to make employment-related decisions such as hiring, discipline, and termination. It passed the California Legislature in September after several rounds of amendments.
McNerney described the bill as a “groundbreaking” step toward protecting workers from unjust or opaque decision-making by artificial intelligence. “Businesses are increasingly using AI to boost efficiency and productivity,” McNerney said. “But there are currently no safeguards to prevent machines from unjustly or illegally impacting workers’ livelihoods.”
Senate Bill 7 did not seek to ban AI in the workplace but proposed what McNerney called "commonsense guardrails," including human oversight when ADS tools are used in disciplinary or termination decisions; advance notice to employees about the use of automated systems in employment decisions; and mandatory disclosure when ADS was the primary factor in disciplinary actions or termination. Enforcement of the provisions would have been granted to the state labor commissioner, the attorney general or local prosecutors.
Supporters of the bill, including labor groups and worker advocates, argued that the growing use of "bossware"—AI tools designed to monitor and manage employee performance—raises the risk of errors, bias, and lack of accountability.
“Bosses should have souls,” said Lorena Gonzalez, president of the California Federation of Labor Unions, AFL-CIO, in support of the bill. “We cannot allow robo-bosses to go unchecked, while workers are treated like collateral damage of new technologies in the workplace.”
McNerney cited the existence of more than 550 “bossware” products already on the market, warning that some systems have mistakenly led to employees being fired.
In a memo explaining his veto, Newsom said he agreed that workers deserve protections from the misuse of AI but argued that the bill’s provisions were too broad and lacked focus.
He expressed concern that the law could trigger onerous notification requirements, even for businesses using relatively benign tools. Newsom also criticized the bill for prohibiting the use of customer ratings to reward employees, calling such a restriction an overreach.
“To the extent that customer reviews are unfairly or inappropriately used to make decisions about a worker, legislation should address those specific scenarios rather than ban this practice altogether,” he wrote.
Newsom also pointed to upcoming legislation designed to give employees and independent contractors greater insight into how their personal data is used by automated decision technologies. He suggested that lawmakers evaluate the impact of that pending law before passing additional regulations in the same area.
Opponents of SB 7 included the California Chamber of Commerce, technology companies, and other business organizations. They argued the bill’s language was overly expansive and could stifle innovation, especially in sectors where AI is being deployed to streamline operations or enhance customer service.
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