Blog Post

Written by
Holistic AI
Structured content
June 6th, 2022
California Workplace Technology Regulation Primer
Flag of the state of California against a cloudy sky

Purpose of the legislation

  • The proposed legislation will limit the use of electronic monitoring of workers and ensure that only vital information is collected about workers.
  • Automated decision tools will also be regulated and employers will be required to give notice to workers when monitoring or automated tools are used and when data collection occurs.

Duties on companies

  • Employers who collect data on their employees must provide sufficient notice, keep accurate records, secure data, and disclose information upon request.
  • Employers who use electronic monitoring systems must have their systems approved by the Labor agency and are limited in their monitoring by labor law.
  • Employers who use automated decision-making systems (ADSs) must provide sufficient notice, keep records, and maintain human oversight of systems relating to employment decisions.
  • Employers using ADSs to make or assist employment related decisions must have their ADS assessed through an algorithmic impact assessment (AIA) conducted by a third party.
  • Employers using worker information systems to collect, store or use worker data must commission an independent assessor to carry out a data protection impact assessment (DPIA).

Who’s in scope?

  • Employers with workers in California collecting or using data about their workers or using electronic monitoring or automated decision systems.

What’s the risk?

  • Fines of between $2500 and $20,000 per violation/worker affected/for each day a violation occurs (depending on the violation).
  • Poor data-protection provisions or data breaches incur a fine of $100 per worker affected.
  • Commission of assessors for data protection and/or algorithmic impact assessments.

Strategic evaluation

  • This legislation is still under consideration by the California Assembly.
  • The proposal indicates a trend towards algorithmic assurance and the adoption of regular impact assessments.

Compliance with HolisticAI

  • The proposed legislation requires employers to hire assessors to conduct algorithmic and/or data protection assessments. Such assessments contribute towards the assurance of a system.
  • Researchers at Holistic AI have published on impact assessments, assurance, and the wider AI ethics movement.
  • Holistic AI is experienced in assuring systems, providing a software as a service platform where users can onboard their projects.
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