New San Mateo County rules could force businesses to pay when robots replace human workers
San Mateo County, California – San Mateo County is trying to write the rules for workplace robots before they become an ordinary sight behind restaurant counters, inside hotels or moving through stores. In a 4-0 vote, the Board of Supervisors advanced a new permitting system aimed at balancing automation with fire safety, first-responder concerns and protections for workers.
The ordinance, introduced by Supervisor Ray Mueller, applies to businesses in unincorporated San Mateo County. County officials believe the framework could be the first of its kind for commercial use of autonomous, AI-controlled robots.
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The measure does not ban the technology. Instead, certain businesses would need permits for robots that use cameras or sensors, operate at least partly without human control in spaces accessible to workers or the public, and rely on rechargeable lithium-ion batteries.
“This model ordinance addresses the reasonably foreseeable impact of humanoid robots entering commercial workspaces,” Mueller said.
“The ordinance addresses both fire and first responder safety concerns, as well as providing worker protections for those displaced by this emerging technology.”
Permit applications would require details about a robot’s manufacturer, safety history and recalls. Businesses would also have to show compliance with applicable battery safety, accessibility, privacy and food-safety requirements.
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Worker impacts are another major part of the proposal. Businesses would need to submit an Economic Impact Assessment and Workforce Mitigation Plan. If employees are displaced, employers must choose among three options: move workers into other jobs with at least equal pay, provide 60 days’ notice plus severance, or pay a new County Automation Impact Fee into a workforce retraining fund.
Battery risks also shaped the ordinance. Lithium-ion batteries can enter “thermal runaway,” producing fires that may reignite and release toxic gases. Businesses covered by the rules would pay a fee intended to help fire agencies fund specialized equipment, inspections and responder training.
The County is acting as robot use expands worldwide. The International Federation of Robotics reported nearly 200,000 professional service robots sold in 2024, including more than 42,000 for hospitality. The World Economic Forum’s 2025 Future of Jobs Report found that 58 percent of surveyed employers expect robots and autonomous systems to transform their businesses by 2030.
The ordinance is scheduled to return to supervisors for final adoption. If approved, it would take effect 30 days later.
