New AI Legislation in Congr

Tracking AI Legislation: Three Key Bills in Congress Impacting Employers and Workplace 

As artificial intelligence (AI) continues reshaping the modern workplace, Congress is considering several pieces of legislation that could directly affect employers’ use of automated decision-making systems and workplace surveillance technology. These new federal bills are more targeted than the broad AI guidelines previously proposed, focusing on AI applications specific to employee management and privacy. Below, we explore these critical proposals and the potential implications for both employers and AI developers.

Overview of Federal AI Regulations in Place

Federal regulation of AI in the workplace has been gaining traction. Though current laws primarily provide overarching frameworks, they lay the groundwork for more specific rules that these new bills would bring:

1. AI in Government Act (2020) – Defines AI-related roles and responsibilities within the federal workforce.
2. National AI Initiative Act (2021) – Outlines a strategic approach to AI on a national level.
3. AI Training Act (2022) – Mandates AI training for specific government employees to enhance federal capability in AI governance.
4. EEOC AI and Algorithmic Fairness Initiative (2021) – Sets compliance requirements for AI used in hiring, emphasizing non-discrimination.
5. Executive Order on AI Safety and Trustworthiness (2023) – Expands AI standards across employment sectors, targeting issues like bias and fair use.

Proposed Legislation: What Employers Need to Know

Three significant bills under consideration in Congress would add specific regulations on AI’s role in the workplace, from decision-making to surveillance. Here’s a closer look:
 

1. No Robot Bosses Act (S. 2419)

Introduced by Sen. Bob Casey (D-PA), the "No Robot Bosses Act" aims to limit employers' reliance on Automated Decision Systems (ADS) for employment-related decisions. The bill includes several notable provisions:

• Human Oversight Requirement: Employers cannot exclusively use ADS for hiring, promotions, termination, or other employment actions without substantial human review.
• Training Mandate: Employers using ADS would need to train employees on its appropriate use and potential biases.
• Creation of a Regulatory Division: A new "Technology and Worker Protection Division" in the Department of Labor would oversee and enforce these regulations.

This legislation addresses concerns over “robot bosses” and has garnered support from four Democratic co-sponsors. However, its future depends partly on the upcoming election results, which could shift the balance of power in Congress and impact the bill’s re-introduction.

2. Stop Spying Bosses Act (S. 262)

Also introduced by Sen. Bob Casey, the “Stop Spying Bosses Act” aims to curb workplace surveillance practices by requiring transparency and setting limitations on what employers can monitor. Key elements include:

• Transparency Requirement: Employers must inform employees and job applicants about surveillance practices, including the type of data collected and its influence on employment decisions.
• Data Privacy Restrictions: Employers would be prohibited from gathering off-duty data or information related to union activities.
• New Enforcement Division: The Department of Labor would establish a Privacy and Technology Division to oversee and enforce these privacy standards.

Although this bill has similar support as the "No Robot Bosses Act," it faces political hurdles, especially if there is a Senate leadership shift in favor of Republicans after the November election.

3. Algorithmic Accountability Act (S. 2892)

Sen. Ron Wyden (D-OR) introduced the "Algorithmic Accountability Act" to address biases and discrimination that may arise from AI-driven decisions. This bill applies broadly to organizations that use AI for critical decisions in hiring, promotions, and other employment actions. Key provisions include:

• Impact Assessment: Organizations must evaluate the effects of their ADS to identify potential biases and other discriminatory outcomes.
• Training and Education: Employers would need to train relevant staff and contractors on proper ADS use and biases.
• FTC Oversight: The Federal Trade Commission (FTC) would oversee and create enforcement standards for compliance.

This bill has more widespread support than either of Casey’s proposals, and its companion legislation in the House may stand a better chance if there is a shift toward a Democratic majority.

Other Recent Federal AI Proposals

Several additional bills addressing AI have been introduced in the current legislative session, though none have yet passed. These include:

• American Privacy Rights Act (APRA) – A bipartisan effort to increase transparency and accountability for high-impact AI systems.
• AI Labeling and Deepfake Transparency – Legislation to ensure that AI-generated content and interactions are labeled for consumer clarity.
• AI Cybersecurity and Data Privacy – A proposed measure to protect consumer data privacy and enhance cybersecurity around AI systems, including consent requirements for personal data usage.

State-Level AI Initiatives Worth Noting

Federal legislation isn’t the only area seeing movement on AI regulation. Many states are proposing their own AI laws that impact employers and workplaces. Here are some of the noteworthy efforts:

• California (CA): Multiple AI bills are in consideration, including measures to prevent algorithmic bias. Governor Gavin Newsom recently signed a SAG-AFTRA-supported bill to regulate AI applications affecting performers’ voices and likenesses.
• Illinois (IL): Governor J.B. Pritzker signed a bill that mandates businesses to notify employees about AI usage in hiring and other employment-related decisions.
• Colorado (CO): The Colorado AI Act prohibits discriminatory AI use in employment and establishes additional developer requirements. Governor Jared Polis has asked legislators to refine the law before its 2026 implementation to balance regulation with innovation.

Outlook for AI Legislation

As the 118th Congress approaches its final months, significant federal AI legislation is unlikely to pass in the near term. Nonetheless, proposed amendments may find their way into essential bills such as the National Defense Authorization Act (NDAA) and the Farm Bill. Employers are advised to stay informed about these developments, both federally and at the state level, as regulatory changes in AI are anticipated to increase in scope and specificity over the next several legislative sessions.

For employers utilizing AI or considering its adoption, staying compliant with evolving laws will be essential. Monitoring the progress of these bills and understanding their potential impacts can help businesses effectively navigate AI’s regulatory landscape.