United States of America: Bill amending Labor Code to regulate automated decision systems in employment was adopted by California Legislature

Description

Bill amending Labor Code to regulate automated decision systems in employment was adopted by California Legislature

On 23 September 2025, the Bill Amending Labor Code to regulate automated decision systems (ADS) in employment was adopted by the California Legislature. The Bill applies to all employers, including public and private sectors, using ADS for employment decisions, including hiring, discipline, promotion, termination, and work monitoring. Employers must give written notice before deploying an ADS, maintain an updated list, and notify job applicants if an ADS will be used in hiring. ADS cannot violate labour laws, infer protected status, or be the sole basis for discipline or termination; human review is required. Workers can request the last 12 months of their data used by an ADS. Retaliation for exercising rights is prohibited. The Labour Commissioner enforces compliance with civil penalties of USD 500 per violation. Notices for existing ADS must be provided by 1 April 2026.

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Scope

Policy Area
Labour law
Policy Instrument
Worker monitoring regulation
Regulated Economic Activity
cross-cutting
Implementation Level
subnational
Government Branch
legislature
Government Body
parliament

Complete timeline of this policy change

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2024-12-02
under deliberation

On 2 December 2024, the Bill Amending Labor Code to regulate automated decision systems (ADS) in em…

2025-09-23
adopted

On 23 September 2025, the Bill Amending Labor Code to regulate automated decision systems (ADS) in …

2025-10-13
rejected

On 13 October 2025, the Governor of California vetoed Senate Bill No. 7, which would have added Par…