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Committee advances SB 7 to Appropriations after debate on worker protections, human oversight and predictive analytics

5419000 · July 16, 2025
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Summary

SB 7, a bill to require notice and human oversight when automated decision‑making systems affect employment decisions, passed the Assembly Consumer Protection and Privacy Committee as amended and is headed to Appropriations.

Senator McNerney presented SB 7, a bill that would require employers to notify workers when they use automated decision‑making systems for employment‑related decisions, ensure a human review for discipline and termination decisions, and ban use of predictive analytics to forecast a worker’s future behavior as the primary basis for discipline.

The bill drew strong support from labor organizations and civil‑liberties groups. Yvonne Fernandez of the California Federation of Labor testified the bill responds to real‑world applications of machine management — such as automated scheduling or time‑tracking systems — that can generate discipline without meaningful human judgment. Union witnesses stressed ADS can encode bias and produce automated penalties that lack nuance and appeal rights.

Business groups said they support human oversight for consequential decisions but raised concerns about the bill’s broad notice and access provisions, potential burdens on small employers and the inclusion of independent contractors. The California Chamber of Commerce and employer trade groups pressed for narrower definitions of covered ADS uses and a clearer limit on when an appeal right attaches.

Committee members discussed the difficulty of calibrating a human‑in‑the‑loop requirement to small workplaces where a single manager might be the reviewer and asked the author to continue negotiations about definitions, the scope of notice, and whether appeals should be limited to higher‑risk uses. The author accepted committee amendments to narrow the draft and to add flexibility about agency operations in critical public sectors.

Outcome: The committee adopted the bill as amended and sent it to Appropriations. Sponsors and opponents said they will continue to negotiate implementation language before the floor. The bill’s proponents emphasized the human‑in‑the‑loop guarantee and appeal rights for workers as central features.