On October 1, 2026, Governor Gavin Newsom signed SB 947, known as the No Robo Bosses Act. The new law stops California employers from using an automated decision‑making system (ADS) as the sole basis for firing or disciplining a worker. If a company relies primarily on AI, a human must verify the decision and the employee must receive a written notice describing the AI’s role, the data used, and a contact person.
How we got here
Senator Jerry McNerney first introduced the idea in 2025 as SB 7, but Governor Newsom vetoed that version over concerns it would force businesses to alert workers whenever any AI tool was used. In February 2026 McNerney re‑filed the bill as SB 947, trimming the pre‑notification requirement and narrowing the scope to discipline and termination cases. The Senate passed the revised bill on May 20, 2026, 29‑9, and it cleared the Assembly later that year before reaching the governor’s desk.
What the law requires
Employers may still use AI for routine tasks, but they cannot let an ADS decide a worker’s fate without a human check. The law also bans ADS that predict a worker’s future behavior, beliefs, or emotions, and it blocks systems that infer protected characteristics such as race or gender for employment actions. Workers can ask for a copy of the data the AI used once a year, and violations carry a $500 civil penalty per breach, plus possible punitive damages.
What happens next
Companies will need to audit any AI tools that feed into HR decisions, add a step for manager review, and set up a process to send the required notice. The state labor commissioner will enforce the rule, and workers can sue for private damages. Industry groups have warned that the undefined term “primarily relies” could create uncertainty, so many firms are likely to err on the side of caution and limit AI use in personnel matters.
Why it matters
California workers will now receive a written explanation whenever AI played a major role in a termination or disciplinary action, giving them a chance to challenge the decision. Employers must add a human review step, which may slow down some HR processes but also reduces the risk of biased or erroneous AI judgments. The law sets a precedent that could influence other states to adopt similar safeguards, potentially changing how companies across the U.S. use AI in managing staff.
