Tag Archive for: legislation

Utah Sets Boundaries on Generative AI

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As AI systems and technology use continue to soar, more regulations and guidelines follow. Utah’s SB 149, also known as the AI Policy Act, mandates disclosure to any person who is interacting with generative AI. The Act is effective as of May 1, 2024, and has been implemented to promote transparency and fairness in AI-driven communications.

Below is a quick timeline of events leading up to SB 149:

  • Early 2023: Initial discussions and drafting of the AI Policy Act.
  • March 2024: SB 149 passed in the Utah Legislature.
  • May 1, 2024: SB 149 went into effect.

Utah is one of the first states, alongside Colorado, to enact a law governing the use of AI.

What is “Generative AI”?

Utah’s AI Policy Act defines generative AI as any artificial system that:

  • is trained on data;
  • interacts with a person using text, audio, or visual communications; and
  • generates non-scripted outputs with intentional likeness to human interaction, with limited or no actual human oversight.

This broad definition encompasses various applications, from marketing bots to customer service responses.

Guidelines for Employers 

In addition to the general terms and usage of AI, employers should be aware of guidelines, enforcement, and penalties regarding Utah’s AI Policy Act.

Disclosures 

  • General Disclosure: Companies must “clearly and conspicuously” disclose the use of generative AI, if it is used to interact with a person and if that person asks.
  • Regulated Professionals Disclosure: Any person who provides the services of a regulated professional, meaning any occupation requiring a license or state certification, must prominently disclose the use of generative AI at the start of the interaction.

Disclosures must be prominent and clear and cannot be solely included in terms of use or privacy notices.

Enforcement and Penalties 

  • The Division of Consumer Protection may impose fines of up to $2,500 per violation and seek additional remedies such as injunctions and disgorgement (seizure of illegally obtained profits).
  • The Attorney General’s office can seek civil penalties for up to $5,000 for each prior administrative or court order violation.

To read the full details of policies, regulated professions, and guidelines for employers, take a closer look here.

The Office of Artificial Intelligence Policy

Utah law also establishes a state Office of Artificial Intelligence Policy (OAIP) under the Act, which will oversee a learning laboratory to assess risks and best practices related to AI. The OAIP will also have rule-making authority over AI issues, consult with businesses and stakeholders about proposed regulations, draft rules for participation in the learning lab program, and define criteria for organizations to follow when seeking mitigation of regulatory requirements or violations.

Importance for Human Resource Professionals Nationwide

New laws and regulations regarding the use of AI, such as Utah’s SB 149 and Colorado’s SB 24-205, can potentially set a precedent for future legislation in other states addressing responsible AI use on a larger scale.

These laws highlight the need for transparency, fairness, and accountability in AI systems, particularly those used in direct human interactions and concerning use in regulated professions. As states like California, Connecticut, and Virginia propose similar laws in 2024 to combat the misuse of AI, the urgency for clear disclosure requirements appears to be a growing trend. Employers in Utah should consult with their legal counsel to review laws regarding the use of AI in business and employment practices.

One Source will attempt to provide updates on AI regulations in Utah and across the United States as they emerge.

 

Changes to California’s Fair Employment & Housing Act

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On September 28, 2024, Governor Gavin Newsom signed Senate Bill 1100, an amendment to California’s Fair Employment & Housing Act (FEHA), introducing a significant change to promote fairness and inclusivity throughout the hiring process.  Under the amendment, starting in 2025, California will prohibit employers from requiring a driver’s license in job advertisements and applications unless driving is a job function for the position that cannot be performed by alternative means.

An overview of California’s Fair Employment & Housing Act 

Below is a quick timeline of California’s Fair Employment & Housing Act: 

  • 1959: The Fair Employment Practices Act enacted to address workplace discrimination 
  • 1963: The Rumford Fair Housing Act set boundaries on discrimination based on race, religion, national origin, and ancestry. 
  • 1980: The FEHA was enacted, combining the Fair Employment Practices Act and the Rumford Fair Housing Act. 

Since then, the FEHA has been a center point for California’s anti-discrimination laws. Multiple changes have occurred over the past few years alone, such as AB 2188  in 2024, which prohibits discrimination against off-duty cannabis use in most circumstances, and updates to the Fair Chance Act in October 2023. 

On September 28, 2024, Governor Gavin Newsom signed SB 1100 into law, further amending the FEHA to limit the circumstances under which an employer can require a driver’s license in job advisements and applications. 

Purpose and employer restrictions 

California has historically prohibited discrimination against individuals without a standard driver’s license to provide more opportunities for Californians with non-standard driver’s licenses who can provide proof of residency in the state but not national citizenship. This recent change adds an additional layer of protection to avoid candidate discrimination against individuals without any form of driver’s license at all.

The primary goal of the amendment is to provide equal access to employment opportunities for individuals who do not possess a driver’s license and those who may rely on alternative transportation methods such as ride-hailing services, public transportation, biking, and walking. Employers are also prohibited from including a statement in job advertisements, postings, applications, or other materials that an applicant must have a driver’s license unless: 

  • The employer reasonably anticipates driving to be one of the job functions for the position.
  • The employer reasonably believes that satisfying the job function using alternative forms of transportation (such as ride-hailing, taxis, carpooling, bicycling, and walking) would not be comparable in travel time or cost to the employer.

These changes to California’s Fair Employment Act are effective January 1, 2025. To learn more details, read the full text of the amendment here.

The future of anti-discrimination law

Hiring professionals in California should monitor the status of Senate Bill 1100 as the law’s interpretation and employer boundaries are set in future rulings, as well as other future updates to the Fair Employment & Housing Act.

While this amendment specifically applies to California, it draws attention to an often-overlooked barrier to inclusivity and non-discrimination in the workplace for candidates who do not or are unable to drive. Employers in other states should also be aware of these changes, as they may influence future legislation in other states and jurisdictions.

 

This article is for informational purposes only and does not constitute legal advice. Employers should consult their legal counsel before taking any action.