SHRM submitted public comment and delivered oral testimony July 18 in response to proposed regulations in California that seek to protect against employment discrimination resulting from the use of AI, algorithms, and other automated decision-making systems.
The California Civil Rights Council (CCRC), part of the state's Civil Rights Department, proposed the regulations on May 17. The rulemaking aims to, among other things:
- Clarify that it is a violation of state law to use automated decision-making systems if it harms applicants or employees based on protected characteristics.
- Clarify the scope of third-party liability arising from the use of AI tools.
- Affirm that the use of an automated decision-making system does not replace the requirements for an individualized assessment when considering an applicant’s criminal history during a background screen.
We’ve rounded up articles and resources from SHRM and SHRM Online to provide more context on the news.
A ‘Chilling Effect’ on Business, Workforce Development
In its public comment, SHRM said it "is concerned that CCRC’s proposed regulations, while well-intentioned, may hinder California businesses from achieving the many benefits of AI, including increased productivity, enhanced decision-making, and the creation of new high-skill job opportunities."
“As written, these regulations stand to impose a chilling effect on the adoption of AI in California and could undermine critical workforce development initiatives, disadvantaging both California businesses and their employees,” SHRM said.
SHRM urged CCRC to balance preventing algorithmic discrimination with enabling responsible AI use. “SHRM is in favor of regulations and guidelines that support, rather than stifle, workplace and workforce innovation," it said. "We believe the key is to implement a balanced approach that safeguards job candidates and employees’ rights, while enabling businesses to use tools that will lead to better workforce decisions.”
(SHRM)
White House Issues Executive Order on AI
President Joe Biden signed a first-of-its-kind executive order in October 2023 on the development of AI, seeking to shape how the powerful technology evolves in a way that can maximize its potential but limit its risks. The order requires the tech industry to develop safety and security standards, introduces new consumer and worker protections, and assigns federal agencies a to-do list to oversee the rapidly progressing technology.
DOL Addresses How Labor Laws Apply to Use of AI
In May, the U.S. Department of Labor’s (DOL's) Wage and Hour Division and Office of Federal Contract Compliance Programs (OFCCP) issued new AI guidance. The Wage and Hour Division’s new guidance clarifies employers’ obligations under federal labor laws as they pertain to use of automated systems and AI. The guidance from the OFCCP cautions federal contractors they must monitor their use of artificial intelligence and automated systems to make sure they don’t adversely affect applicants and employees from protected groups.
NYC AI Law Largely a Bust
New York City’s “AI Bias Law” held a lot of promise for advocates of regulating automated and artificial intelligence tools in hiring. Studies show, however, that most employers are largely ignoring it.
The law requires employers that use automated employment decision tools, which include many platforms and software used in recruitment and hiring, to audit those tools for potential race and gender bias, publish the audit results on their websites, and notify employees and job candidates that such tools are being used. But the law very narrowly defines the covered tools.
Coordinate Compliance Among Laws Regulating AI
HR professionals need to be sure to coordinate compliance among a host of existing laws that already apply to AI in employment.
AI Can Maximize Human Potential
Explore SHRM resources for integrating AI in the workplace.
(SHRM)
An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.
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