What employers should know about key developments this week:
State-Led Artificial Intelligence (AI) Legislation: Illinois recently codified the disparate impact theory of liability (which focuses on effect, not intent), and California has long recognized the theory. Both states’ AI frameworks should be interpreted accordingly. Texas’s Responsible AI Governance Act takes a different approach, requiring evidence of discriminatory intent.
Discipline and Termination Oversight: California’s Senate Bill 947, the No Robo Bosses Act, would bar employers from relying solely on automated systems for discipline or termination decisions and would require human review with independent corroboration.
Federal Pushback and State Retreat: Colorado twice delayed its original AI Act, then paused enforcement amid a lawsuit joined by the federal government. The state ultimately repealed the original law and replaced it with a narrower version focused on notice and disclosure.
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