Regulon.AI — CA-SB-947 · CA SB 947 (Workplace ADS)

Summary

SB 947 regulates employer use of automated decision systems (ADS) in the workplace. It prohibits employers from using ADS to infer protected status, conduct predictive behavior analysis on workers, identify workers exercising legal rights, or rely solely on ADS for discipline, termination, or deactivation decisions. When ADS assists such decisions, the employer must direct a human reviewer to conduct an independent investigation and provide the affected worker with a detailed postuse notice. Workers may request copies of their own data used by the ADS. Enforcement is through the Labor Commissioner, a private right of action for affected workers, or public prosecutor civil actions, with a $500 civil penalty per violation plus punitive damages and attorney's fees available.

Enforcement & Penalties

Enforcement Authority

The Labor Commissioner shall enforce this part, including investigating alleged violations, ordering temporary relief, issuing citations, and filing civil actions. Alternatively, any worker or their exclusive representative who has suffered a violation may bring a civil action in a court of competent jurisdiction. A public prosecutor may also bring a civil enforcement action. No cure period is specified. Standing for private plaintiffs requires having suffered a violation of the part's provisions.

Penalties

Civil penalty of $500 per violation. In civil actions brought by the Labor Commissioner or by a worker, the petitioner may seek appropriate temporary or preliminary injunctive relief, punitive damages, and reasonable attorney's fees and costs. Workers may also recover damages caused by the adverse action.

Who Is Covered

"Employer" means any person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, including all cities, counties, charter counties, municipalities, charter municipalities, cities and counties, special districts, transit districts, the University of California upon agreement by the regents, the California State University, community college districts, school districts, or any other governmental entity.

"Employer" includes a labor contractor of a person defined as an employer under paragraph (1).

What Is Covered

"Automated decision system" or "ADS" means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decisionmaking and materially impacts natural persons. An automated decision system does not include a spam email filter, firewall, antivirus software, identity and access management tools, calculator, database, dataset, or other compilation of data.

Compliance Obligations 9 obligations · click obligation ID to open requirement page

S-02 Prohibited Conduct & Output Restrictions · Deployer · EmploymentAutomated Decisionmaking

Lab. Code § 1522(a)(1)-(4)

Plain Language

Employers are categorically prohibited from using an ADS to: (1) facilitate violations of existing labor, employment, safety, or civil rights laws; (2) infer a worker's protected class status under FEHA; (3) conduct predictive behavior analysis — which includes any system that predicts, infers, or modifies a worker's behavior, beliefs, personality, emotional state, or similar characteristics; or (4) identify, profile, predict, or retaliate against workers for exercising legal rights. These are absolute prohibitions with no safe harbor or compliance alternative.

Statutory Text

(a) An employer shall not use an ADS to do any of the following: (1) Prevent compliance with or violate any federal, state, or local labor, occupational health and safety, employment, or civil rights laws or regulations. (2) Infer a worker's protected status under Section 12940 of the Government Code. (3) Conduct predictive behavior analysis on a worker. (4) Identify, profile, predict, or take adverse action against a worker for exercising their legal rights, including, but not limited to, rights guaranteed by state and federal employment and labor law.

D-01 Automated Processing Rights & Data Controls · D-01.4 · Deployer · EmploymentAutomated Decisionmaking

Lab. Code § 1522(a)(5)

Plain Language

Employers may not use individualized worker data as ADS inputs or outputs to determine compensation unless they can clearly demonstrate that any resulting pay differences for substantially similar work are justified by cost differentials in performing the task or that the data was directly related to the worker's hired tasks. This effectively creates a burden-shifting framework: the default is that individualized data-driven compensation is prohibited, and the employer must affirmatively prove a legitimate justification.

Statutory Text

(5) Use or rely upon individualized worker data as inputs or outputs to inform compensation unless the employer can clearly demonstrate that any differences in compensation for substantially similar or comparable work assignments are based upon cost differentials in performing the task involved, or that the data was directly related to the tasks that the worker was hired to perform.

H-01 Human Oversight of Automated Decisions · H-01.6 · Deployer · EmploymentAutomated Decisionmaking

Lab. Code § 1522(b)-(c)

Plain Language

Employers may never rely solely on an ADS for discipline, termination, or deactivation decisions. When ADS output assists such a decision, the employer must assign a human reviewer to conduct an independent investigation and compile corroborating evidence — which may include supervisory evaluations, personnel files, work product, peer reviews, or witness interviews. Critically, if the human reviewer cannot corroborate the ADS output, or concludes it is inaccurate, incomplete, or misleading, the employer is prohibited from using that output for the decision. This goes beyond a human-in-the-loop requirement: the human must have genuine override authority and the ADS output is disqualified absent independent corroboration.

Statutory Text

(b) (1) An employer shall not rely solely on an ADS when making a disciplinary, termination, or deactivation decision. (2) If an employer uses an ADS output to assist in making a disciplinary, termination, or deactivation decision, the employer shall direct a human reviewer to conduct an independent investigation and compile corroborating or supporting information for the decision. For purposes of this paragraph, "other information" may include, but is not limited to, any of the following: (A) Supervisory or managerial evaluations. (B) Personnel files. (C) Work product of workers. (D) Peer reviews. (E) Witness interviews, that may include relevant online customer reviews. (c) If an employer cannot corroborate the ADS output, or the human reviewer has concluded that the ADS output is inaccurate, incomplete, or misleading, the employer shall not use the ADS output to discipline, terminate, or deactivate a worker.

Other · EmploymentAutomated Decisionmaking

Lab. Code § 1522(d)

Plain Language

Employers may not use customer ratings as the sole or primary input data for any employment-related decision — a category that covers hiring, discipline, termination, compensation, scheduling, performance evaluation, promotions, and more. Customer ratings may still be used as a supplementary factor, but cannot be the only or dominant data source driving the ADS. This is particularly relevant for gig economy platforms that rely heavily on customer rating systems to evaluate worker performance.

Statutory Text

(d) An employer shall not use customer ratings as the only or primary input data used to assist the employer to make employment-related decisions.

D-01 Automated Processing Rights & Data Controls · D-01.1 D-01.2 · Deployer · EmploymentAutomated Decisionmaking

Lab. Code § 1522(e)-(f)

Plain Language

Workers have the right to request and receive a copy of their own data used by an ADS in connection with discipline, termination, or deactivation decisions, covering the most recent 12-month period. This right is limited to one request per 12 months. When providing the data, the employer must anonymize any personal information belonging to customers, other workers, or other individuals to protect their privacy. This is a data access right — not a pre-decision notice — and is triggered by the worker's request rather than automatically.

Statutory Text

(e) A worker shall have the right to request, and an employer shall provide, a copy of the most recent 12 months of the worker's own data primarily used by an ADS to make a disciplinary, termination, or deactivation decision. A worker is limited to one request every 12 months for a copy of their own data used by an ADS to make a disciplinary, termination, or deactivation decision. (f) For purposes of safeguarding the privacy rights of consumers, workers, and individuals, when an employer is required to provide worker data pursuant to this part, that worker data shall be provided in a manner that anonymizes the customer's, other worker's, or individual's personal information.

H-01 Human Oversight of Automated Decisions · H-01.1 H-01.2 H-01.3 · Deployer · EmploymentAutomated Decisionmaking

Lab. Code § 1524(a)-(c)

Plain Language

When an employer uses ADS to assist in a discipline, termination, or deactivation decision, the employer must provide the affected worker a written postuse notice at the time the worker is informed of the decision. The notice must be a separate, stand-alone, plain-language communication in the worker's routine language, disclosing: (1) that ADS was used, (2) that a human reviewer independently investigated and corroborated the ADS output, (3) contact information for a human the worker can reach for more information and to exercise data access rights, and (4) anti-retaliation protections. If the worker then requests their data, the employer must provide — in a document accessible outside the workplace — the specific decision, the specific ADS inputs and outputs, corroborating evidence, the ADS vendor name and product name, and any completed impact assessments for that ADS. This is a two-stage obligation: the initial notice is automatic at the time of the decision, and the detailed data disclosure is triggered by worker request.

Statutory Text

(a) An employer that uses an ADS to assist in making a disciplinary, termination, or deactivation decision shall provide the affected worker with a written postuse notice at the time the employer informs the worker of the decision. The notice shall comply with all of the following: (1) It shall be written in plain language as a separate, stand-alone communication. (2) It shall be in the language in which routine communications and other information are provided to workers. (3) It shall be provided via a simple and easy-to-use method, including an email, hyperlink, or other written format. (b) The post-use notice shall contain all of the following information: (1) That the employer used an ADS to assist the employer in the disciplinary, termination, or deactivation decision with respect to the worker. (2) That a human reviewer conducted an independent investigation and compiled evidence to corroborate the ADS output. (3) Contact information for the human that the worker may contact for more information about the decision and the worker's right to access a copy of their own data and corroborating evidence that was used in the decision. (4) That the employer is prohibited from retaliating against the worker for exercising their rights under this part. (c) When responding to a data access request pursuant to this section, an employer shall provide to the worker a written, plain language document using a simple and easy-to-use method that is accessible away from the workplace containing all of the following: (1) The specific decision for which the employer used the ADS. (2) The specific worker input data that the ADS used, and the specific worker output produced by the ADS. (3) Any additional corroborating or supporting information used in addition to the ADS output in making the decision. (4) The name of the vender or entity that created the ADS and the product name of the ADS. (5) A copy of any completed impact assessments regarding the ADS in question.

G-03 Whistleblower & Anti-Retaliation Protections · G-03.3 · Deployer · EmploymentAutomated Decisionmaking

Lab. Code § 1526

Plain Language

Employers are prohibited from retaliating against any worker — through discharge, demotion, suspension, or any form of discrimination — for exercising rights under this part, filing a complaint with the Labor Commissioner, alleging a violation, cooperating in investigations or prosecutions, or taking any action to invoke or assist enforcement. This is a broad anti-retaliation provision covering both the exercise of substantive rights (e.g., requesting data, challenging an ADS-assisted decision) and participation in enforcement proceedings.

Statutory Text

An employer shall not discharge, threaten to discharge, demote, suspend, or in any manner discriminate or retaliate against any worker for using or attempting to use their rights under this part, filing a complaint with the Labor Commissioner, alleging a violation of this part, cooperating in an investigation or prosecution of an alleged violation of this part, or any action taken by the worker to invoke or assist in any manner the enforcement of this part, or for exercising or attempting to exercise any right protected under this part.

Other · EmploymentAutomated Decisionmaking

Lab. Code § 1526.3

Plain Language

An employer that complies with the postuse notice requirements in this part is exempt from substantially similar ADS-related notice obligations under other California state laws. However, this safe harbor does not override CCPA/CPPA automated decisionmaking regulations — employers subject to the CCPA must still comply with any privacy-related automated decisionmaking technology regulations adopted by the California Privacy Protection Agency.

Statutory Text

Except as set forth in Section 1526.4, an employer who complies with the requirements related to notice under this part is not required to comply with any substantially similar notice provisions related to automated decision systems used for employment-related decisions required under any other state law.

Other · EmploymentAutomated Decisionmaking

Lab. Code § 1526.5

Plain Language

Parties covered by a collective bargaining agreement are exempt from this part, but only if the CBA satisfies three cumulative conditions: (1) it explicitly waives this part in clear and unambiguous terms, (2) it expressly provides for wages, working conditions, and other terms of work, and (3) it provides protection from algorithmic management. All three conditions must be met — a generic CBA that does not specifically address algorithmic management protections would not qualify for the exemption.

Statutory Text

The provisions of this part shall not apply to parties covered by a collective bargaining agreement if the agreement explicitly waives this part in clear and unambiguous terms, expressly provides for the wages or earning, working conditions, and other terms and conditions of work, and provides protection from algorithmic management.