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Chronicles

The story behind the story

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A look at some California tech regulation bills, including one banning AI use in firing or disciplining workers, that await Gov. Newsom's signature or his veto

A guide to the AI and tech bills that have passed the California legislature, and await the governor's signature — or veto.

Blood in the Machine Brian Merchant

Context & Ripple Effects

California’s legislature has previously advanced AI rules even as Newsom warned lawmakers about the risks of over-regulating AI. This package moves the debate from broad model-safety questions toward operational uses of AI in workplaces.

The pending decisions follow California’s earlier legislative push on SB 1047’s AI-safety requirements, but the worker-discipline proposal targets how employers deploy automated systems rather than how developers build models.

First-order effects

  • Newsom’s signature or veto will determine whether California employers may continue using AI in decisions to fire or discipline workers; until then, employers and HR-software providers face a near-term compliance planning question.
  • If enacted, the ban would require affected employers to separate AI tools from the specific disciplinary decisions covered by the measure.

Second-order effects

  • HR and workplace-AI vendors would need to clarify which features can support managers without being used to make prohibited employment decisions, increasing the value of auditable human-review workflows.
  • Other employers and states considering workplace AI rules gain a concrete California policy model, while companies operating across jurisdictions may prefer uniform internal controls over state-by-state practices.

Third-order effects

  • The measure signals a possible shift from regulating AI models in the abstract to governing consequential deployment contexts, where accountability can be assigned to employers and software providers.
  • If this approach spreads, operational safeguards—human oversight, traceability, and defined limits on automated decision-making—could become a central competitive and compliance requirement for enterprise AI.

The trend: AI governance is increasingly moving toward rules for high-impact uses in workplaces and other real-world decision systems, not just safeguards for model developers.

Discussion

  • @bcmerchant Brian Merchant on bluesky
    This has been pushed to the background, but pay attention:  —  Right now, a stack of bills aimed at reining in AI companies and big tech sits on Gavin Newsom's desk in California.  These are the bills Silicon Valley and the GOP tried to ban outright.  Now they await Newsom's sign…
  • @zeffmax Max Zeff on x
    California is on the cusp of signing of the nation's first AI safety laws: SB 53. It could require OpenAI, Anthropic, Google, and xAI to publish safety reports about their AI models As Gov. Newsom weighs the bill, I sat down with its author, state Senator @Scott_Wiener. [image]