Insight from Rich Paul Included in SHRM Article About California Proposal to Limit Use of AI Systems by Employers
Rich Paul, a Quarles & Brady Labor & Employment partner in the firm’s San Diego office, was quoted in a SHRM article about proposed California regulations that would limit the use of artificial intelligence (AI) systems by employers in the state.
The California Civil Rights Council, which is part of the California Civil Rights Department, has adopted the regulations that would establish limits on how employers use AI or automated decision-making systems. If approved by the state’s Office of Administrative Law, the regulations, which would impact many common HR technologies, could go into effect as early as July 1.
Paul shared background on the issue’s development over the last several years and addressed potential implications of the potential new regulations. An excerpt:
Paul agreed that California lawmakers will likely come up with something to address these issues. At present, the regulations lack the full authority of state law, which may open the door for employer noncompliance. Relying on “regulation leaves this potential argument that it exceeds the regulator’s authority,” Paul said.
However, the Legislature may pause any efforts in this regard to assess the efficacy of the new regulations and see whether they are reasonable or even too narrow. Lawmakers may wish to observe over a few years to “see how they shake out,” said Paul.
Employers would certainly do well to comply with the new regulations, but in the event a company’s AI system is determined to be discriminatory, the issue of liability becomes murky. Should the system “result in a disparate impact against a particular group, [this] may impose liability on the employer,” Paul said.