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Committee advances bill to require disclosure and impact evaluation when employers use AI monitoring tools
Summary
SB 238 would require institutions to disclose when algorithmic or AI monitoring systems are used and to evaluate their impact to guard against bias; the committee advanced the bill 5-0 after testimony from labor and privacy advocates and objections from businesses citing security risks.
The committee voted to advance SB 238, a bill sponsored by Senator Smallwood-Cuevas that would require disclosure when employers and institutions use AI monitoring systems and require an evaluation of their impacts to prevent bias and discrimination.
Senator Smallwood-Cuevas said the bill is intended to promote transparency and accountability as employers increasingly use wearable sensors, biometric tools and algorithmic monitoring. "SB 238 requires institutions to disclose AI usage and evaluate its impact to help prevent racial, gender, and socioeconomic bias," the senator said. Proponents framed the measure as protecting privacy and preventing discriminatory outcomes.
Yvonne Fernandez for the California Federation of Labor and other advocates argued surveillance technology now includes wearable trackers, heat sensors and keystroke monitoring, and that workers lack awareness of monitoring tools used against them. Opponents, including credit unions and business groups, said the bill's notice and disclosure requirements risk exposing security and fraud-prevention systems; they urged narrowing or carving out public-safety and security tools.
The author said the bill would not require disclosure of source code, passwords, or technical architecture that would compromise cybersecurity, and emphasized it requires a "general description" of AI use. The committee recorded a roll-call vote advancing the bill 5-0; the secretary announced the motion to "do pass and be re-referred to the committee on privacy and consumer protection."
