Calif. Governor Rejects “No Robo Bosses” Act

By Alex. W. Karasik, Brian L. Johnsrud, and George J. Schaller

Duane Morris Takeaways:  On October 13, 2025, California Governor Gavin Newsom, issued a written statement declining to sign Senate Bill 7 – called the “No Robo Bosses” Act (the “Act”).  While the Act aimed to restrict when and how employers could use automated decision-making systems and artificial intelligence, Governor Newsom rejected the proposed legislation in terms of the Act’s broad drafting and unfocused notification requirements.  Governor Newsom’s statement reflects an initial rebuttal to a wave of pending AI regulations as states wrestle with suitable AI guidance.  Given the pro-employee tendencies of Governor Newsom and California regulators generally, this outcome is a mild surprise.  Employers nonetheless should expect continued scrutiny of AI regulations before enactment.

This legislative activity surely sets the stage for what many believe is the next wave of class action litigation.

See more on the Duane Morris Class Action Defense Blog.

Takeaways from R.I.S.E. AI Conference

This week at the University of Notre Dame’s inaugural R.I.S.E. AI Conference in South Bend, Indiana, partner Alex W. Karasik of the Duane Morris Class Action Defense Group was a panelist at the highly anticipated session, “Challenges and Opportunities for Responsible Adoption of AI.”  The conference, which had over 300 attendees from 16 countries, produced excellent dialogues on how cutting-edge technologies can both solve and create problems, including class action litigation.

Read more at the Duane Morris Class Action Defense Blog.

Using Artificial Intelligence Tools During Interviews

Duane Morris partner Alex Karasik is quoted in the Law360 article, “3 Tips For Employers Using AI Interviewing Tools.”

He tells Law360 “that while aggressive regulation or litigation from the federal level seems unlikely in the near future, employers still need to be proactive about potential AI bias because states and the plaintiffs bar are homing in.

“Even though AI-related technologies are streamlining employment processes exponentially by the day, there still is a required human element[.] Because a human needs to be able to understand when these unique one-off situations may come up, where an applicant or employee needs an accommodation. And a human needs to have the agility to adapt and apply that accommodation request appropriately and lawfully.”

Read the full article on the Law360 website.

Artificial Intelligence Employment Discrimination Lawsuit Proceeds

In Mobley v. Workday, Inc., Case No. 23-CV-770 (N.D. Cal. July 12, 2024) (ECF No. 80), Judge Rita F. Lin of the U.S. District Court for the Northern District of California granted in part and denied in part Workday’s Motion to Dismiss Plaintiff’s Amended Complaint concerning allegations that Workday’s algorithm-based screening tools discriminated against applicants on the basis of race, age, and disability. This litigation has been closely watched for its novel case theory based on artificial intelligence use in making personnel decisions. For employers utilizing artificial intelligence in their hiring practices, tracking the developments in this cutting-edge case is paramount.  This ruling illustrates that employment screening vendors who utilize AI software may potentially be liable for discrimination claims as agents of employers.

Read the full post on the Duane Morris Class Action Defense Blog.

Suit Involving Artificial Intelligence-Powered Hiring Tools Heads to Discovery

A closely watched discrimination lawsuit over software provider Workday’s artificial intelligence-powered hiring tools is headed into discovery after a California federal court ruled the company may be subject to federal antidiscrimination laws if its products make decisions on candidates. […]

Alex W. Karasik, a management-side attorney who is a partner at Duane Morris LLP and a member of the firm’s workplace class action group, said companies using or selling workplace-related AI tools need to track the Workday proceedings closely.

“This is definitely a case to watch, as it’s a landmark case involving the use of artificial intelligence and the hiring process,” he said. “Both employers and technology vendors, particularly those involved with artificial intelligence or algorithmic decision-making tools, absolutely need to pay attention to this case.”

He said [the] decision sets out critical guidelines for courts’ evaluations of who may be on the hook when a vendor of AI-based hiring tools faces allegations that its product churns out biased results. […]

Read the full article on the Law360 website (subscription may be required).

Employment Discrimination and Artificial Intelligence

Artificial intelligence took the employment world by storm in 2023, quickly becoming one of the most talked about and debated subjects among corporate counsel across the country. Companies will continue to use AI as a resource to enhance decision-making processes for the foreseeable future as these technologies evolve and take shape in a myriad of employment functions. As these processes are fine-tuned, those who seek to harness the power of AI must be aware of the risks associated with its use. This featured article analyzes two novel AI lawsuits and highlights recent governmental guidance related to AI use. As the impact of AI is still developing, companies should recognize the types of claims apt to be brought for use of AI screening tools in the employment context and the implications of possible discriminatory conduct stemming from these tools. Read the full featured article here.

Artificial Intelligence Discussed at Legalweek

Privacy and data breach class action litigation, as well as artificial intelligence issues, are among the key issues that keep businesses and corporate counsel up at night. There was over $1 billion procured in settlements and jury verdicts over the last year for these types of “bet-the-company” cases.  At the ALM Law.com Legalweek 2024 conference in New York City, Duane Morris partner Alex W. Karasik was a panelist at the session “Trends in US Data Privacy Laws and Enforcement.” The conference, which had over 6,000 attendees, produced excellent dialogues on how cutting-edge technologies can potentially lead to class action litigation.

Read more on the Duane Morris Class Action Defense Blog.

Discrimination Suits Rise with AI Recruiting Software

In Mobley v. Workday, Inc., Case No. 23-CV-770 (N.D. Cal. Jan 19, 2024) (ECF No. 45), Judge Rita F. Lin of the U.S. District Court for the Northern District of California dismissed a lawsuit against Workday involving allegations that algorithm-based applicant screening tools discriminated applicants on the basis of race, age, and disability. With businesses more frequently relying on artificial intelligence to perform recruiting and hiring functions, this ruling is helpful for companies facing algorithm-based discrimination lawsuits in terms of potential strategies to attack such claims at the pleading stage.

Read more on the Duane Morris Class Action Defense Blog.

Executive Order Signifies Shift in Artificial Intelligence Use

On October 30, 2023, President Biden signed an Executive Order (the “EO”) providing guidance for employers on the emerging utilization of Artificial Intelligence in the workplace.  The EO establishes industry standards for AI security, innovation, and safety across significant employment sectors. Spanning over 100 pages, the robust EO endeavors to set parameters for responsible AI use, seeking to harness AI for good while mitigating risks associated with AI usage.

Read more on the Duane Morris Class Action Defense Blog.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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