REDWOOD CITY, CA — As robots move into restaurants, hotels, stores and other workplaces, San Mateo County officials are considering new rules that would put businesses on the hook for safety, privacy and the workers who could be displaced by the technology.
San Mateo County Supervisor Ray Mueller is proposed an ordinance at Tuesday's board meeting that would require businesses in unincorporated areas of the county to obtain special permits before deploying autonomous robots.
The proposal would create what county officials describe as a first-of-its-kind permitting system for robots operating inside commercial establishments.
"We know this technology is coming, and there is potential for it to benefit many businesses," Mueller said. "But what we can't do is wait for something to go wrong before we decide what the rules and safeguards should be."
The proposed rules would cover fully or partially autonomous, AI-controlled robots powered by rechargeable batteries, including remotely operated machines. Businesses would need a separate permit for each robot and each location where it is used.
Among the proposed requirements, businesses would have to provide information about a robot's manufacturer, recalls and incident history, while certifying compliance with battery safety, accessibility and privacy requirements. Businesses also would need insurance and would have to meet food-safety requirements when applicable.
But the proposal goes beyond regulating the machines themselves.
Businesses would be required to submit an Economic Impact Assessment and a Workforce Mitigation Plan addressing employees displaced by robots.
Under the proposal, businesses would have three options for displaced workers: redeploy them at equal or greater pay, provide at least 60 days' notice and severance, or pay a proposed County Automation Impact Fee into a Workforce Retraining Fund.
The ordinance also calls for a fee to help local jurisdictions obtain specialized equipment for responding to fires involving robot batteries.
Lithium-ion batteries can experience a condition known as thermal runaway, in which a battery can rapidly heat up and potentially reignite. The county proposal stated the resulting fires can release toxic gases and require specialized equipment and training for firefighters.
The proposal comes as autonomous technology increasingly moves beyond factories and into everyday businesses.
Robots are already being used for tasks including food delivery, moving goods, building patrols, information services and cleaning.
The International Federation of Robotics reported that nearly 200,000 professional service robots were sold worldwide in 2024, including more than 42,000 used in hospitality.
The World Economic Forum's 2025 Future of Jobs Report found that 58 percent of employers surveyed expected robots and autonomous systems to transform their businesses by 2030.
The technology is also becoming a major focus in Silicon Valley. Tesla announced in January that it would end production of its Model S and Model X at its Fremont factory and use the space for production of its Optimus humanoid robots. The company has said it aims to eventually produce up to 1 million robots a year in Fremont.
California already regulates autonomous vehicles, while some cities have rules governing smaller autonomous delivery robots that operate on sidewalks and other public spaces.
Mueller's proposal would instead establish a broader framework for autonomous robots operating inside commercial businesses.
The proposal follows an August decision by the San Mateo County Board of Supervisors directing county staff to develop a permitting framework for commercial robots. Mueller and the County Attorney's Office subsequently consulted with academics and industry experts while developing the ordinance.
If approved, the county's Planning and Building Department would administer the permits through its Code Compliance Section.
Businesses that violate the proposed rules could face administrative fines as well as suspension or revocation of their permits.
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