Proposed California crackdowns on workplace tech could hit comp

ANAHEIM, Calif. — Bills aiming to regulate how employers use technology to monitor employees and requiring disclosure of automated decision-making systems could have unintended consequences for California’s workers compensation system, according to a lobbyist.

A.B. 1331, which was sent to the state Senate on Monday after passing the Assembly on June 5, would establish when and where workplace surveillance is appropriate. The bill includes a provision that could hamper fraud investigations by prohibiting employers from monitoring their workers at home, according to Jason Schmelzer, a lobbyist for the California Coalition on Workers’ Compensation who spoke during the CCWC 21st annual Conference and Legislative and Educational Forum.

Schmelzer also warned about A.B. 1018, which was introduced May 23 and referred to a committee Wednesday. That bill would generally regulate the use of automated decision-making systems by requiring entities to disclose the use of such systems, allow people to opt out and provide a way to appeal adverse determinations.

He described the bill as an “overreach,” saying it would apply anytime an entity uses a machine to make a decision that a human used to make and that decision affects someone another person in some critical way.

“It’s that broad,” Mr. Schmelzer said. “So if you use a computer to do the first cut on medical treatment, you have to disclose that and give people the choice of whether to use that tech.”

The requirements in the bill are not conducive to efficiently processing claims, he said.

“It’s not exactly workers comp policy, but to the extent we use technology to make decisions faster to deliver benefits faster, I think the Legislature should make room for that type of thing,” Mr. Schmelzer said.

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