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Congress has been kicking around the idea of a 10-year AI legislation moratorium for a while now, and almost included it in the Senate’s version of President Trump’s “big beautiful bill” tax and spending bill. But while that remains an idea on the national level, states are already making their own moves to write laws about AI in the workplace.
California’s bill would require human oversight when it comes to promoting, demoting, disciplining, or firing workers. It would also protect personal employee information like religion and health care history, and prevent employers from using AI to protect worker actions that would result in a negative outcome against them.
“The act will be a first-of-its-kind as it places significant restrictions on the use of AI in the workplace,” Luana de Mello, assistant general counsel and HR consultant with Engage PEO, tells Fortune. “This will require businesses to take a closer look at their AI systems, including regular audits, and to ensure they are using these systems transparently and in compliance with state regulations.”
“The purpose of these laws really is to provide transparency,” says Angelina Evans, an attorney at Seyfarth Shaw’s Los Angeles office. “And [protect] the people that might have their rights violated, and they’re not even aware of it.”
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