California’s AB 2930, a bill that sought to regulate automated decision tools (ADTs) that are used to make “consequential decisions” in employment, was defeated when the bill’s author moved it to the inactive file shortly before the conclusion of the legislative session for the California State Legislature.

AB 2930 would have imposed onerous responsibilities for impact assessments, disclosures, and governance programs on developers and deployers (employers) of artificial intelligence systems. Employers would also have an obligation, “where technically feasible,” to accommodate individual “opt-out” requests if “consequential decisions”—broadly defined to involve nearly every aspect of employment, including recruiting—were made based solely on the output of an ADT, and provide detailed notices to individual affected employees.

ASA and California Staffing Professionals, an ASA-affiliated chapter, adamantly opposed the bill. Led by longtime ASA lobbyist Mike Robson and his colleague Jason Ikerd, ASA submitted written testimony on multiple instances throughout the session and met with legislative leaders to express the industry’s concerns with the bill.

In its opposition, ASA noted the unique issues in regulating use of ADT to recruit temporary employees, the operational burden of “opt-outs” and prior- and post-consequential decision notices, and staffing firms’ inability to make “impact assessments” of ADT.

It is likely that the state legislature will revisit this topic next year, and ASA will continue to monitor similar bills seeking to regulate the use of AI in the employment context and engage as necessary.

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