At a glance
- California is moving toward stronger oversight of AI and automated decision-making systems (ADS) in employment, aiming to protect workers' rights and ensure transparency.
- New rules governing the use of AI and ADS in employment practices will take effect on October 1, 2025.
- If signed, employers must provide written notice before and after using ADS, offer a right to appeal decisions, and comply with anti-retaliation protections.
- The Labor Commissioner will be empowered to enforce these rules, including through civil actions.
- Additional employment-related bills have been approved by the Legislature and are awaiting Governor Newsom’s decision.
On October 1, 2025, California’s regulations on the use of artificial intelligence and ADS in employment practices take effect.
If signed by Governor Newsom, Senate Bill 7 would impose new requirements on employers utilizing ADS to make 'employment-related decisions,' including a requirement to provide pre-use and post-use written notice to all workers who will be directly or indirectly affected by the ADS. The bill also provides for a right to appeal employment-related decisions; contains an anti-retaliation provision; and provides for enforcement by the Labor Commissioner, including civil actions.
Other employment-related bills approved by the California Legislature are pending with Governor Newsom. We will continue to monitor developments.
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